True/FalseIndicate whether the statement is true or false

.____1. Overtime pay is defined by the Fair Labor Standards Act as double an employees regular hourly wage rate

.____2. Gross earnings are an employees earnings before any amount is deducted by the employer.____

3. Net pay is calculated by subtracting all deductions from the employees gross earnings.____

4. The three basic payroll taxes imposed on most employers are FICA, SUTA, and FUTA.____

5. The Social Security program is funded solely by the contributions of employees.____

6. The FICAHI rate is 6.2% of all earnings.____

7. The total amount of the payroll taxes expense should be credited to a single liability account.____

8. The liability accounts used to record the employees share of the FICA taxes are different from the liability accounts used to record the employers share.____

9. The schedule an employer uses for depositing FICA taxes and federal income taxes withheld is based on the total tax liability reported during a two-quarter lookback period.____

10. Employers must file Form 941 at the end of each calendar quarter.Multiple ChoiceIdentify the choice that best completes the statement or answers the question.____

11. Sandra Black is a CPA earning a salary of $24,000 per year. Her semimonthly rate of pay isa.$4,000.c.$1,000.b.$2,000.d.$500.____

12. An employee with gross earnings of $40,000 per year earns what amount per week?a.$833.33c.$1,666.67 b.$800.00d.$796.23____

13. Alicia Morrow has an annual salary of $83,400 and is paid monthly. The gross amount of earning on her paycheck isa.$83,400.c.$2,085.b.$6,950.d.$1,604.____

14. Gina Lewis has gross earnings of $400 for the first week in January. She has cumulative earnings of $20,000. In addition to her FICA tax deduction, her federal income tax deduction is $47 and her retirement plan deduction is $35. What is her net pay for the week?a.$353.00c.$112.60b.$287.40d.$318.00____

15. Which form do new employees complete in order to claim withholding allowances?a.W-2c.W-4b.W-3d.W-5____

16. You can find all of the following information in the payroll register excepta.the department or area to which you should charge the employees earnings.b.the number of allowances and filing status claimed by an employee.c.the date of hire for the employee.d.the amount of the check to be issued to the employee.____

17. The Salaries Payable account represents which amount on the payroll register?a.Gross wagesc.Net wagesb.Taxable wagesd.Inadequate wages____

18. Payroll work is often done on the computer becausea.only a computer can perform the complex calculations.b.employees do not use time cards anymore.c.businesses use mainframe computers for payroll.d.the repetitive nature of payroll work is well suited for automation.____

19. The payroll register for Dexter Company reveals gross earnings of $25,000 and total deductions of $6,500. Based on this data, it can be determined that the a.Deductions account will be debited for $6,500.b.Salaries Expense account will be debited for $25,000.c.Salaries Expense account will be debited for $18,500.d.Salaries Payable account will be credited for $25,000.____

20. The entry to record the payroll owed to employees includes a debit to thea.FICA Tax Payable account.c.Cash account.b.Payroll Tax Expense account.d.Salaries Expense account.____

21. Carltons Mercantile reported the following amounts on its payroll register for the pay period ending March 15, 2004: taxable earnings, $7,542; net pay, $5,724. The journal entry to record the issuance of payroll checks to employees isa.debit Salaries Expense $7,542 and credit Salaries Payable $7,542.b.debit Salaries Payable $7,542 and credit Cash $7,542.c.debit Salaries Expense $5,724 and credit Cash $5,724.d.debit Salaries Payable $5,724 and credit Cash $5,724.____

22. According to the text, the current FICAOASDI rate isa.0.8%.b.6.2% of the first $102,000 earned in a calendar year.c.1.45%.d.6.2% of the first $7,000 earned in a calendar year.____

23. Pat Sullivan is calculating the FUTA tax he owes for his employee, Jason Levine. Jason earned $101,000 prior to the current pay period and another $2,000 this pay period. How much FUTA tax is owed on Jasons earnings this pay period?a.$8c.$29b.$62d.$0____

24. During this pay period, Shand Company has $825 of earnings that are subject to FUTA. However, Shand Company qualifies for the full credit allowed for timely SUTA contributions. How much FUTA tax does Shand Company owe for this pay period?a.$11.96c.$6.60b.$44.55d.$51.15 ____

25. Dixie Mountain Companys current payroll is $156,000, of which $62,000 is subject to FICAOASDI. The companys portion of the FICA tax (both OASDI and HI) will be a.$3,844.05.c.$6,106.00.b.$2262.00.d.$11,934.00.____

26. Gross wages for the period are $150,000. Wages subject to FICAOASDI are $75,000. Wages subject to FUTA and SUTA tax are $6,000. The SUTA rate is 5.4%. Compute the employers payroll tax.a.$20,475c.$11,847b.$7,197d.$11,175____

27. The total for the employers portion of FICA, FUTA, and SUTA will be recorded in a journal entry as aa.debit to Payroll Tax Payable.c.credit to Salaries Payable.b.debit to Payroll Tax Expense.d.credit to Employee Tax Expense.____

28. What is the minimum number of employees that a business must have in order to need an employer identification number?a.1c.0b.3d.5____

29. An employers total taxes during the lookback period were $60,000. This employer should deposit payroll taxesa.daily.c.quarterly.b.semiweekly.d.monthly.____

30. Taxes due are as follows: $1,500 of FICAOASDI tax, $300 of FICAHI tax, and $3,500 of federal income tax withheld from employees paychecks. Which of the following describes the journal entry needed to record the deposit of these taxes?a.Debit FICAOASDI Expense $1,500, FICAHI Expense $300, Federal Income Tax Withholding Expense $3,500; credit Cash $5,300b.Debit FICAOASDI Payable $1,500, FICAHI Payable $300, Federal Income Tax Withholding Payable $3,500; credit Cash $5,300c.Debit Cash $5,300; credit FICAOASDI Payable $1,500, FICAHI Payable $300, Federal Income Tax Withholding Payable $3,500; Cash $5,300d.Debit Federal Tax Expense $5,300; credit Federal Taxes Payable $5,300