1) Nancy has cumulative earnings of $104,500 and earns $7,800 during the current pay period. If the FICA rate is 4.2 percent for Social Security, with a limit of $106,800, and 1.45 percent for Medicare, applied to all earnings, calculate the total FICA tax to be withheld for this pay period. a. $440.70. b. $209.70. c. $113.10. d. $96.60. e. $231.00.
1) Nancy has cumulative earnings of $104,500 and earns $7,800 during the current pay period.
If the FICA rate is 4.2 percent for Social Security, with a limit of $106,800, and 1.45 percent for
Medicare, applied to all earnings, calculate the total FICA tax to be withheld for this pay period.
a. $440.70.
b. $209.70.
c. $113.10.
d. $96.60.
e. $231.00.
2) Ernie White has $6,800 cumulative earnings during the calendar year and earned $950 during
the current pay period. If the state
unemployment tax is 0.6 percent of the first $7,000, the FICA Social Security tax is 6.2 percent of
the first $106,800, and FICA Medicare tax is 1.45 percent on all earnings, the amounts placed in
the Taxable Earnings columns of the payroll register are:
a. state unemployment, $0; federal unemployment, $0; Social Security, $850; Medicare,
$850.
b. state unemployment, $950; federal unemployment, $950; Social Security, $950; Medicare,
$950.
c. state unemployment, $200; federal unemployment, $200; Social Security, $950; Medicare,
$950.
d. state unemployment, $200; federal unemployment, $200; Social Security, $200; Medicare,
$200.
e. state unemployment, $10.80; federal unemployment, $1.60; Social Security, $58.90;
Medicare, $13.78.
3) Steven Ray has cumulative earnings of $6,580 and earned $840 during the current payroll
period. If the SUTA tax is 5.4 percent, with a ceiling of $7,000, the employer liability for state
unemployment taxes is:
a. $45.36.
b. $22.68.
c. $355.32.
d. $378.00.
e. $6.72.
4) Payroll tax expense correspond to the amount of taxes contributed by the:
a. Employee.
b. Employer.
c. Employee and employer combined.
d. Employer plus gross pay.
e. Employer plus the employee's net pay.
5) Carol Blane’s cumulative yearly earnings for the year are $29,000, counting her current pay
period salary amount of $4,500. Assume the FICA tax rate is 6.2 percent for Social Security, with
a limit of $106,800, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6
percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The
employer's payroll tax expense entry will include a credit to:
a. FICA Tax Payable for $279.00.
b. FICA Tax Payable for $344.25.
c. Federal Unemployment Tax Payable for $27.00.
d. State Unemployment Tax Payable for $243.00.
e. Federal Unemployment Tax Payable for $270.00.
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