Posted: August 8th, 2016

which of the following taxes is there a ceiling on the amount of employee annual earnings subject to the tax?

UNIT-3
2) To compute FICA-OASDI tax to be withheld:
A) use net earnings and Form W-4.
B) use gross earnings, number of allowances, and marital status.
C) use the net earnings and number of allowances.
D) None of these answers are correct.

4) Wendy Nelson works 48 hours as a graphic designer. Compute her weekly pay. Her hourly rate of pay is $25.00 per hour.
A) $1,000
B) $1,300
C) $1,500
D) $1,100

5) Currently the FUTA is:
A) .8% with a base limit of $7,000.
B) 6.2% with a base limit of $76,200.
C) 5.4% with a base limit of $76,200.
D) 5.4% with a base limit of $7,000.

6) Marcy’s cumulative earnings before this pay period were $6,200, and gross for the week is $500. How much of this week’s pay is subject to taxes for SUTA and FUTA? The rates for SUTA is 5.4% and FUTA is 0.8% with a base of $7,000.
A) $300
B) $0
C) $6,700
D) $500 Unit

7) For which of the following taxes is there no ceiling on the amount of employee annual earnings subject to the tax?
A) Federal Unemployment Tax
B) FICA-Social Security
C) FICA-Medicare
D) State Unemployment Tax

8) For which of the following taxes is there a ceiling on the amount of employee annual earnings subject to the tax?
A) FICA-social security
B) State unemployment taxes
C) Federal unemployment taxes
D) All of these answers are correct.