how much FUTA and SUTA will the employer
pay this week? The rate for SUTA is 5.4% and
FUTA is 0.8%.
a) $421.60
b) $0
c) $49.60
d) $12.40
Chapter 8 Quiz
Objectives:
1. Recording payroll and payroll taxes.
2. Paying payroll and recording the paying
of payroll
3. Calculating employer taxes for FICA,
OASDI, FICA Medicate, FUTA, SUTA,
and Workers’ compensation insurance.
4. Paying FIT, FICA FUTA, SUTA, and
worker’s compensation insurance.
5. Preparing Forms W-2, W-3, 941, 8109
and 940.
9. The general journal entry to record the
employer’s monthly payroll tax would include:
a) a credit to Salaries Expense.
b) a debit to Salaries Payable.
c) a credit to FICA-OASDI Payable.
d) a credit to Payroll Tax Expense.
TRUE/FALSE
1. A banking day is a holiday where the bank is
open to the public.
10. Which of the following statements is false?
a) Payroll Tax Expense is an expense account.
b) FICA-Social Security Tax Payable increases
on the debit side of the account.
c) Payroll Tax Expense increases on the debit
side of the account.
d) All of these answers are correct.
2. The SUTA tax rate is set by the federal
government.
3. The payroll tax expense is an expense in
addition to the salary and wages expense.
4. The FICA taxes are paid by the employee and
employer.
5. Federal income taxes are paid to the government
at the time the salary and wage expense is
recorded.
MULTIPLE CHOICE
6. The FICA rate for an employer is:
a) twice the individual rate.
b) half of the employee rate.
c) The employer does not pay FICA taxes.
d) equal to the employee rate.
7. Semi-weekly depositors:
a) have 3 banking days to make its payroll tax
deposit.
b) pay more than $50,000 in taxes over the last
year.
c) must file electronically.
d) Both “a” and “b” are correct.
8. Marcy’s cumulative earnings before this pay
period were $6,800, and gross for the week is
$800. Assuming a wage base limit of $7,000,
Chapter 8
TRUE/FALSE
1. ANSWER: False
(L.O. 2)
2. ANSWER: False
(L.O. 3)
3. ANSWER: True
(L.O. 1)
4. ANSWER: True
(L.O. 1)
5. ANSWER: False
(L.O. 2)
MULTIPLE CHOICE
6. ANSWER: d
(L.O. 1)
7. ANSWER: d
(L.O. 2)
8. ANSWER: d
(L.O. 4)
9. ANSWER: c
(L.O. 1)
10. ANSWER: b
(L.O. 1)
Chapter 8