Reference no: EM132318398

Question

1. Employers who have less than $2,500 due in federal income tax withholding and Social Security and Medicare taxes at the end of the quarter should journalize the debt and pay at the end of the

a. next banking day.

b. year.

c. quarter.

d. month following the end of the quarter.

2. An Employer Identification Number (EIN) is obtained by the employer from the

a. nearest local federally insured bank.

b. CIA.

c. nearest Federal Reserve Bank.

d. Internal Revenue Service.

3. The rules by which employers must deposit Social Security and Medicare taxes can be found in the

a. Circular E--Employer's Tax Guide.

b. state tax guide.

c. Federal Reserve Bank Tax Guide.

d. Circle K Tax Guide.

4. The date on which an employer must pay Social Security and Medicare taxes is

a. June 30 of each year.

b. December 31 of each year.

c. dependent on the amount of the taxes.

d. January 1 of each year.

5. Form 941 is a(n)

a. Employer's Annual Federal Unemployment Tax Return.

b. Employer's Quarterly Federal Tax Return.

c. Employee Withholding Allowance Certificate.

d. Wage and Tax Statement.

6. To journalize the payment of Medicare taxes to the IRS, the correct entry would be

a. debit Medicare Tax Payable and credit Payroll Taxes Expense.

b. debit Medicare Tax Payable and credit Social Security Payable.

c. debit Medicare Tax Payable and credit IRS.

d. debit Medicare Tax Payable and credit Cash.

7. The total payroll cost to an employer of an employee who has gross earnings of $78,000 is

a. more than $78,000.

b. exactly $78,000.

c. $78,000 plus 30 percent.

d. less than $78,000.

8. After estimating its payroll for the year, an employer usually pays workers' compensation insurance

a. at the end of the year.

b. monthly.

c. at the beginning of the year.

d. quarterly.