Posted: April 15th, 2016

How much of this week’s pay is subject to taxes for SUTA and FUTA?

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.

10) Jake’s earnings during the month of March were $1,500. His earnings for the year prior to March were $5,500. Jake’s employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000. The employer’s unemployment payroll tax expense for March is:
A) $36.40.
B) $56.40.
C) $154.00
D) $42. Unit

11) Bay Online Auction’s payroll for July includes the following data:
Gross salaries $40,000
Salaries subject to FICA:
6.2% Social Security 35,000
1.45% Medicare 40,000
Salaries subject to:
0.8% FUTA 2,000
2.0% SUTA 2,000
The employer’s payroll tax for the period would be:
A) $2,806.
B) $2,226.
C) $3,206.
D) $2,096.

12) The account for Payroll Tax Expense includes all of the following except:
A) federal income tax.
B) unemployment taxes for the year to date.
C) employer payroll taxes for the year to date.
D) FICA taxes (Social Security and Medicare) paid by the employer for the latest payroll period.