Question
In: Accounting
1. Company X has an employee who is paid weekly. For Company X the FUTA tax...
1. Company X has an employee who is paid weekly. For Company X the FUTA
tax rate is 6%. The limit for FUTA is $7000 of employee annual earning subject to the applicable tax.
The employee earns $1000 for the week and has cumulative earnings year to date through the previous week of
$6500. How much is deducted from the employee’s weekly paycheck for FUTA?
A. -60-
B. 30
C. 600
D. 300
E. None of the above
2. For the journal entry-- Dr. Accounts Payable 400; Cr. Cash 400--, what is the correct analysis of the journal entry?
|
A. Accounts Payable, Asset, Increases; Cash, Asset Decreases |
||
|
B. Accounts Payable, Liability, Increases; Cash, Asset Decreases |
||
|
C. Accounts Payable, Liability, Decreases; Cash, Asset Decreases |
||
|
D. Accounts Payable, Liability, Decreases; Cash, Asset Increases |
||
|
E. None of the above |
Solutions
Expert Solution
1.
FUTA tax is paid by employer only. It is not deducted from the paycheck of employees.
Hence, employee is not liable for FUTA tax.
Correct option is (E)
2.
Given transaction
Debit --- Accounts payable 400
Credit --- Cash 400
In the given transaction both accounts payable (A liability) and cash (an asset) are decreasing.
The correct analysis of the journal entry is Accounts Payable, Liability, Decreases; Cash, Asset Decreases.
Correct option is (c)
ekkarill92 answered 2 years agoRelated Solutions
FUTA is: paid by employers only; however, the tax is only paid on the first $7,000...
FUTA is: paid by employers only; however, the tax is only paid
on the first $7,000 of each employee’s earnings for the year paid
by employees only; however, the tax is only paid on the first
$7,000 of their earnings for the year paid by employees only (on
all of their wages) paid by both employees and employers; however,
the tax is only paid on the first $7,000 of the employee’s earnings
for the year paid by employers only (on...
Question 1. A snowboard company currently hires 10 skilled employees who are paid a weekly wage...
Question 1. A snowboard company currently hires 10 skilled
employees who are paid a weekly wage of $1000. The cost of capital
$3,000 and it is fixed, which means that it does not vary with
output. The company is currently producing 240 snowboards. The
company's cost will be $13,500 if it produces an additional
snowboard. A customer is willing to pay $550 for the 241st
snowboard. Should the company produce and sell it? Explain. What
core principles should be considered...
Kris Kringle Company has one employee who is paid a salary of $8,000 per month. Federal...
Kris Kringle Company has one employee who is paid a salary of
$8,000 per month. Federal income tax withheld was $220. State
income tax withheld was $60.The FICA social security tax rate is
6.2% and the FICA Medicare tax rate is 1.45%. The federal
unemployment (FUTA) tax rate is 0.8% on the first $7,000 of wages.
The state unemployment (SUTA) tax rate is 5.4% on the first $7,000
of wages. In addition, $590 of medical insurance was withheld from
the...
Ergo Company has one employee who is paid a salary of $8,500 per month. Payroll information...
Ergo Company has one employee who is paid a salary of $8,500 per
month. Payroll information for the first month of the year is:
Federal and state income tax withheld
$1,275
FICA (social security and Medicare)
7.65%
Federal unemployment (FUTA and SUTA) tax rate (on the
1st $7,000 of wages)
6.2%
Insurance Premiums (paid by Employees)
$400
Part I: Prepare Ergo’s journal entry
to record the first month’s salary expense and employee
withholdings. Payroll tax expense will be recorded in...
A company pays its one employee $3,000 per month. This company’s FUTA rate is 0.8% on...
A company pays its one employee $3,000 per month. This company’s
FUTA rate is 0.8% on the first $7,000 earned; its SUTA rate is 4.0%
on the first $7,000; its Social Security tax rate is 6.2% of the
first $110,100; and its Medicare tax rate is 1.45% of all amounts
earned. The entry to record this company’s March payroll includes
what amount for total payroll taxes expense? Please
explain
Background: M & D Contractors has numerous employees who are paid on a weekly basis. Payroll...
Background:
M & D Contractors has numerous employees who are paid on a
weekly basis. Payroll information for the most recent week ending
August 10, 2018 is given below:
Total Employee
compensation $136,000
FICA social security tax
rate 6.2%
FICA medicare tax
rate 1.45%
Federal unemployment tax
rate 0.6%
State unemployment tax rate 5.4%
Federal income tax rate 15.0%
Of the total employee compensation, $136,000 is subject to the
FICA taxes and $48,500 is subject to the unemployment taxes. Other
expenses include health insurance...
An employee, who is paid $2,130.00 on a semi-monthly basis, is also being paid a $1,200.00...
An employee, who is paid $2,130.00 on a semi-monthly basis, is
also being paid a
$1,200.00 bonus on a separate cheque, within the same pay
period.
To date this year, the employee has only had $1,968.00 in Canada
Pension Plan
(CPP) contributions deducted, so the employee will not reach the
maximum with
these payments.
Calculate the employee’s CPP contribution on the regular
semi-monthly pay of
$2,130.00 and on the separate bonus payment of $1,200.00. Show all
calculations for
full marks.
Portia Grant is an employee who is paid monthly. For the month of January of the...
Portia Grant is an employee who is paid monthly. For the month
of January of the current year, she earned a total of $8,260. The
FICA tax for social security is 6.2% of the first $118,500 earned
each calendar year and the FICA tax rate for Medicare is 1.45% of
all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of
5.4% are applied to the first $7,000 of an employee’s pay. The
amount of federal income...
Lori Longpie is an employee who is paid monthly. For the month of January of the...
Lori Longpie is an employee who is paid monthly. For the month
of January of the current year, she earned a total of $8,260. The
FICA tax for social security is 6.2% and the FICA tax rate for
Medicare is 1.45%. The FUTA tax rate of .6% and the SUTA tax rate
of 5.4% are applied to the first $7,000 of an employee's pay. The
amount of federal income tax withheld from her earnings was
$1,325.17. She also had union...
Lori Longpie is an employee who is paid monthly. For the month of January of the...
Lori Longpie is an employee who is paid monthly. For the month
of January of the current year, she earned a total of $8,260. The
FICA tax for social security is 6.2% and the FICA tax rate for
Medicare is 1.45%. The FUTA tax rate of .6% and the SUTA tax rate
of 5.4% are applied to the first $7,000 of an employee's pay. The
amount of federal income tax withheld from her earnings was
$1,325.17. She also had union...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
- Do you know why your credit card can be refused even though you are profitable?
- The Following Java expression: S/10 * 10 + 10 – S = C Show that this...
- Year Cash Flow 0 −$9,700 1 5,800 2 2,500 3 3,400 &nb
- In a two – story building, an exterior column is to be designed for a service...
- Explain the use of neural networking modeling in predictive analytics. Discuss a real-life example of where...
- Boarder line and antisocial disorder are perhaps the most research personality disorder.What are the most common...
ADVERTISEMENT