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An employer will prepare Schedule B of Form 941 under which circumstances?
 
 The employer is a semi-monthly depositor.
 Line 12 on the Form 941 is less than $500.
 The employer is a semi-weekly depositor.
 The employer is a weekly depositor.
   
Employers are required to deposit FUTA taxes quarterly when their liability exceeds:
 
 $500.
 $160.
 $1,300.
 $1,650.
   
Lauer Company started its business on July 25, 2017. On August 11, it paid wages for the first time and
accumulated a tax liability of $49,500. On Friday, August 18, it incurred a tax liability of $55,000. How is Lauer
Company treated as a depositor?
 
 Semiweekly because its accumulated tax liability is $104,500.
 Semiweekly for this pay period only and then monthly for the remainder of the year.
 Monthly because new companies do not have a lookback period.
 Monthly because its accumulated tax liability is not more than $100,000 on any one day
   
A taxpayer with 2017 AGI of $172,000 has no income tax withholding and is required to pay estimated taxes.
The taxpayer can avoid an underpayment penalty by paying:
 
At least 110% of the 2017 tax liability ratably over four quarterly payments.
 At least 90% of the 2017 tax liability ratably over four quarterly payments.
100% of the 2017 tax liability ratably over four quarterly payments.
At least 90% of the 2016 tax liability ratably over four quarterly payments.
   
Adenike has two jobs and earned $110,800 from her first job and $20,800 from her second job.
How much total FICA taxes will Adenike have withheld from her wages from working two jobs?
 
 $9,853.20.
 $9,854.40.
 $9,893.80.
 $10,067.40.
   
Employees claim withholding allowances on Form W-4. Each withholding allowance claimed lowers their annual
withholding base by what amount for calendar year 2017? Use withholding allowance.
 
$4,050.
$3,950.
$4,005.
$4,035.
   
Erica earned $130,000 during 2017. How much will her employer withhold from her, in total, for FICA taxes?
$9,758.40.
$9,771.40.
$9,087.00.
$9,232.00.
   
Employers pay a maximum federal unemployment tax of 6.0% on how much of an employee’s taxable wages for 2017?
 
 $6,650.
 $7,000.
 $4,650.
 $2,650.
   
Carmen earned $135 in tips in October.
When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?
 
 By October 10.
 By November 10.
 By November 30.
 She is not subject to payroll taxes on tips of less than $140 in any one month.
   
What is the penalty for sending a required tax payment (unless specifically allowed) directly to the Internal Revenue Service?
 
 10%.
 7%.
 9%.
 18%.
   
An employer will prepare Schedule B of Form 941 under which circumstances?
 
The employer is a half-yearly depositor.
 The employer is a semi-weekly depositor.
 The employer is a semi-monthly depositor.
 Line 12 on the Form 941 is less than $2,000.
   
A person who is hired by and works under the control and direction of the employer is called an _________.
 
Employee
   
A person who is not under the direct supervision or control of the company is called an _________.
 
Independent contractor
   
The Fair Labor Standards Act of 1938 sets:
 
Maximum hours of work per week to be performed at the regular rate of pay
Minimum hourly rate of pay.
   
The Fair Labor Standards Act requires that employees working more than 40 hours in a week earns
at least _________ for any extra hours.
 
Time and a half
   
A federal act providing certain benefits for employees and their families, such as retirement benefits
and disability benefits, is known as the _________ _________ Act.
 
Social Security
   
Taxes levied by the federal government against employers to benefit unemployed workers are
called federal _________ taxes.
 
Unemployment
   
Workers' compensation insurance provides coverage to employees who:
 
Are injured while on the job.
   
Federal law requires that certain payroll records be maintained. For each employee the employer
must keep a record of:
 
Hours worked and wages paid.
Taxes withheld.
Proof of citizenship
Name, address, Social Security Number, and birth date.
   
A company has one employee. During the week, the employee worked 40 hours per week, and is
paid at an hourly rate of $10 per hour. Assume social security tax is 6.2%, Medicare tax is 1.45%, and
the employee's federal tax withholding is $46. The entry to record this employee's payroll will include
a debit to wages _________ in the amount of $_________ (omit $ and commas)
 
Wages expense; $400.00
   
A business that writes payroll checks from a separate payroll bank account will:
 
write payroll checks from the payroll bank account
write a check from the general account to the payroll account
   
The most popular method of paying employees is _________ _________.
 
direct; deposit
   
An individual earnings report records
 
Employee information needed to compute earnings and complete tax reports.
   
The general journal entry to record payroll expense will include which of the following entries:
 
debit to wages expense
credit to salaries and wages payable
credit to Medicare tax payable
   
The weekly entries in the general journal to record payments to employees includes which of the following entries:
 
debit to salaries and wages payable
credit to cash
   
The entries to record the weekly payroll are posted from the general journal to the _________ _________.
 
General ledger
   
The general journal entry to record payroll includes a debit to:
 
Wages and salary expense for gross pay
   
The general journal entry to record payroll expense will include a credit to which of the following accounts:
 
Social security tax payable