Payroll Accounting, Taxes, and Reports

Payroll Accounting, Taxes, & Reports
As the months go by, the Unemployment Taxable Earnings will continue to get _____ than Total
Earnings. - correct answer lower



Explain how Unemployment Taxable Earnings are calculated? - correct answer Employer calculates the
earnings based on whether an employee has made $7,000 this year.



How is the amount for Employee Income Tax Payable found for the payment entry? In other words,
where

does that amount come from? - correct answer Payroll Entry or Entries



How is the amount for Social Security Tax Payable and Medicare Tax Payable found for the payment
entry?

In other words, where do those amounts come from? - correct answer Payroll Entry or Entries



In the first few months of the year the Unemployment Taxable Earnings is most likely equal to what? -
correct answer Total Earnings



What are the four payroll taxes that an employer must pay? - correct answer Social Security, Medicare,
and Federal and State Unemployment



What are the percentages for Federal and State Unemployment Taxes? - correct answer Federal: 0.8%
State: 5.4%



What is the Cash Credit amount equal to (in other words, what is the Cash Credit also called?) - correct
answer Net Pay



What is the entry for the payment of Employee Income Tax, Social Security Tax, and Medicare Tax? -
correct answer D:Employee Income Tax Payable, Social Security Tax Payable, Medicare Tax Payable

C:Cash