Appendix 1
Payroll Taxes
This appendix is designed to inform students of the basics of federal payroll tax
computation.
APPENDIX 1 QUESTIONS
1. Federal income tax withholding is dependent on an employee’s income; whether the
employee is being paid weekly, biweekly, semi-monthly, monthly, etc.; the number of
exemptions he or she claims; and the filing status: married, single, head of household,
etc.
2. Guiding employers in this regard is Circular E (Employer’s Tax Guide), which can be
found online at the Internal Revenue Service website.
3. Withholding allowances reduce the amount of income subject to federal income tax
withholding.
4. The old-age, survivors, and disability insurance part of The Federal Insurance
Contributions Act (FICA) is financed by the Social Security tax.
5. The hospital insurance part of The Federal Insurance Contributions Act (FICA) is
financed by the Medicare tax.
6. The tax rate for Social Security is 6.2%.
7. The 2014 wage base limit for Social Security was $117,000.
8. The tax rate for Medicare is 1.45%.
9. There is no wage base limit for Medicare.
,10. Only the employer pays FUTA tax. Do not collect or deduct it from your employees’
wages. The tax, currently at 0.6%, applies to the first $7,000 you pay each employee in
a year after subtracting any exempt payments.
APPENDIX 1 ASSIGNMENTS
1.
a. 34.90 + {[(800.00 – 76.00) – 512.00] x 15%} = 71.02
b. 800.00 x 6.2% = 49.60
c. 800.00 x 1.45% = 11.60
d. 800.00 x 6.2% = 49.60
e. 800.00 x 1.45% = 11.60
f. 800.00 x 0.6% = 4.80
2.
a. 188.60 + ({[2,000.00 – (152.08 x 3)] – 1,475.00} x 25%) = 205.79
b. 2,000.00 x 6.2% = 124.00
c. 2,000.00 x 1.45% = 29.00
d. 2,000.00 x 6.2% = 124.00
e. 2,000.00 x 1.45% = 29.00
f. 500.00 x 0.6% = 3.00
3.
a. 1,395.80 + [(10,000.00 – 7,025.00) x 28%] = 2,228.80
b. 4,800 x 6.2% = 297.60
c. 10,000.00 x 1.45% = 145.00
,d. 4,800 x 6.2% = 297.60
e. 10,000.00 x 1.45% = 145.00
f. 0
, 1
An Interactive Tour of QuickBooks
Accountant
Chapters 1–5 are designed to help students get a top-down view of QuickBooks Accountant as a user-
oriented accounting program. Students can be expected to work through these on their own. In
Chapter 1, students learn, in an interactive way, basic QuickBooks Accountant terminology, basic file
management in QuickBooks Accountant, navigation techniques, and other essential skills such as
printing and correcting mistakes.
CHAPTER 1 QUESTIONS
1. QuickBooks Accountant is used as an automated accounting information system that can help
describe an entity’s financial position and operating results. Like any accounting system,
QuickBooks Accountant can be used as an information tool to help make better decisions and
help facilitate business record keeping and management. QuickBooks Accountant can be used to
invoice customers, maintain receivables, pay bills, maintain accounts payable, track inventory,
and create purchase orders.
2. QuickBooks Accountant’s four basic features are lists, forms, registers, and reports and graphs.
3. Lists are used to manage names and related information on such things as customers, vendors,
employees, inventory, and accounts, to name a few.
4. Forms are used to record business activities such as a sale on account (customer invoice), a
purchase (vendor bill), or a payment (check).
5. The customer invoice, vendor bill, and check are three forms used in QuickBooks Accountant.
Payroll Taxes
This appendix is designed to inform students of the basics of federal payroll tax
computation.
APPENDIX 1 QUESTIONS
1. Federal income tax withholding is dependent on an employee’s income; whether the
employee is being paid weekly, biweekly, semi-monthly, monthly, etc.; the number of
exemptions he or she claims; and the filing status: married, single, head of household,
etc.
2. Guiding employers in this regard is Circular E (Employer’s Tax Guide), which can be
found online at the Internal Revenue Service website.
3. Withholding allowances reduce the amount of income subject to federal income tax
withholding.
4. The old-age, survivors, and disability insurance part of The Federal Insurance
Contributions Act (FICA) is financed by the Social Security tax.
5. The hospital insurance part of The Federal Insurance Contributions Act (FICA) is
financed by the Medicare tax.
6. The tax rate for Social Security is 6.2%.
7. The 2014 wage base limit for Social Security was $117,000.
8. The tax rate for Medicare is 1.45%.
9. There is no wage base limit for Medicare.
,10. Only the employer pays FUTA tax. Do not collect or deduct it from your employees’
wages. The tax, currently at 0.6%, applies to the first $7,000 you pay each employee in
a year after subtracting any exempt payments.
APPENDIX 1 ASSIGNMENTS
1.
a. 34.90 + {[(800.00 – 76.00) – 512.00] x 15%} = 71.02
b. 800.00 x 6.2% = 49.60
c. 800.00 x 1.45% = 11.60
d. 800.00 x 6.2% = 49.60
e. 800.00 x 1.45% = 11.60
f. 800.00 x 0.6% = 4.80
2.
a. 188.60 + ({[2,000.00 – (152.08 x 3)] – 1,475.00} x 25%) = 205.79
b. 2,000.00 x 6.2% = 124.00
c. 2,000.00 x 1.45% = 29.00
d. 2,000.00 x 6.2% = 124.00
e. 2,000.00 x 1.45% = 29.00
f. 500.00 x 0.6% = 3.00
3.
a. 1,395.80 + [(10,000.00 – 7,025.00) x 28%] = 2,228.80
b. 4,800 x 6.2% = 297.60
c. 10,000.00 x 1.45% = 145.00
,d. 4,800 x 6.2% = 297.60
e. 10,000.00 x 1.45% = 145.00
f. 0
, 1
An Interactive Tour of QuickBooks
Accountant
Chapters 1–5 are designed to help students get a top-down view of QuickBooks Accountant as a user-
oriented accounting program. Students can be expected to work through these on their own. In
Chapter 1, students learn, in an interactive way, basic QuickBooks Accountant terminology, basic file
management in QuickBooks Accountant, navigation techniques, and other essential skills such as
printing and correcting mistakes.
CHAPTER 1 QUESTIONS
1. QuickBooks Accountant is used as an automated accounting information system that can help
describe an entity’s financial position and operating results. Like any accounting system,
QuickBooks Accountant can be used as an information tool to help make better decisions and
help facilitate business record keeping and management. QuickBooks Accountant can be used to
invoice customers, maintain receivables, pay bills, maintain accounts payable, track inventory,
and create purchase orders.
2. QuickBooks Accountant’s four basic features are lists, forms, registers, and reports and graphs.
3. Lists are used to manage names and related information on such things as customers, vendors,
employees, inventory, and accounts, to name a few.
4. Forms are used to record business activities such as a sale on account (customer invoice), a
purchase (vendor bill), or a payment (check).
5. The customer invoice, vendor bill, and check are three forms used in QuickBooks Accountant.
