Chapter 6 Homework

RQ.06.12

The employer must do which of the following with unclaimed paychecks?

a. The employer must file a report after a specified statutory period and then surrender the money to the state as abandoned
b. Use it to pay the company's payroll tax
c. Credit it in the company account
d. Any of these choices are correct.
ney to the state as abandoned property.
RQ.06.02

For what reason are "distribution" columns sometimes provided in the payroll register?

a. To classify deductions from salary

b. To record regular and overtime pay rates
c. To classify the wages and salaries according to the nature of the wage and salary expense
d. To record the time worked
MA.06.01

Employee's earnings record

Used to complete Form W-2

Pay Cards
Debit card-based accounts

Disposable Earnings
Earnings remaining after withholding for income taxes
and for other amounts required by law

Regular Earnings plus overtime earnings

Debt portion of payroll entry

Payroll Taxes
Expense account for FICA, FUTA, and SUTA taxes on the employer
RQ.06.06

What is the general priority order concerning wage attachments? Place the choices in the correct order.

1. Bankruptcy
2. Federal tax levies and child support orders, whichever is delivered first
3. Creditor, student loan, or federal administrative wage garnishments.
correct order.
RQ.06.11

How is the information that is usually on a paper paystub given to an employee if the employer is using electronic pay

a. text message to a cell phone

b. secure web site, kiosk, or interactive voice response system
c. verbally
d. all of these choices are correct
ployer is using electronic payst
PR.06.01A.ALGO

Example 6-4

Carson Holiday has a federal tax levy of $4,137.00 against him. If Holiday is married with three personal
exemptions and had a take-home pay of $1,210.00 this week, how much would his employer take from his pay
to satisfy part of the tax levy?

Take-home pay: $ 1,210

Standard Deduction $ 12,700
Personal exemptions $ 12,150
$ 24,850 /52 Weeks $ 477.88
$ 732.12
 th three personal
yer take from his pay
PR.06.03A

a.  Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the
year, his employees earned monthly wages of $8,500, all of which is taxable. The amount of federal income taxes withheld
each month is $1,040. Journalize the payment of wages, and record the payroll tax on November 30.

Date Account Debit Credit

Nov. 30 Wages Expense $ 8,500 Given
FICA Taxes Payable-OASDI $ 527
FICA Taxes Payable-HI $ 123.25
Employee FIT Payable $ 1,040
Cash $ 6,809.75

Nov. 30 Payroll Taxes $ 650.25

FICA Taxes Payable-OASDI $ 527
FICA Taxes Payable-HI $ 123.25

b. Prior to posting the November 30 payroll transaction, FICA Taxes Payable-OASDI, FICA Taxes Payable-HI, and Employees FIT
Payable had zero balances. Ruther must pay the FICA taxes and income taxes withheld on the November 30 payroll. Journalize
the electronic transfer of the payroll taxes on December 17.

Date Account Debit Credit

Dec. 17 FICA Taxes Payable-OASDI $ 1,054
FICA Taxes Payable-HI $ 246.50
Employees FIT Payable $ 1,040
Cash $ 2,340.50
During the last quarter of the
ederal income taxes withheld
ber 30.

Payable-HI, and Employees FIT

ovember 30 payroll. Journalize
PR.06.04A

Date Account Debit Credit

Nov. 30 Wages Expense $ 4,690
FICA Taxes Payable-OASDI $ 290.78
FICA Taxes Payable-HI $ 68.01
Employee FIT Payable $ 685
Cash $ 3,646.21

Nov. 30 Payroll Taxes $ 555.77

FICA Taxes Payable-OASDI $ 290.78
FICA Taxes Payable-HI $ 68.01
FUTA Taxes Payable $ 28.14
SUTA Taxes Payable $ 168.84
RQ.06.18

The accrual entry for the portion of a weekly payroll that is accrued at the end of an accounting period is determined b

a. the amount of the adjustment could be estimated based on an average week's pay
b. the amount of the adjustment could be based on a percentage of the prior months' pay
c. the amount of the adjustment could be based on a percentage of the prior week's pay
d. Any of these choices are correct
unting period is determined by:
RQ.06.19

Benefits expenses such as vacation pay and retirement pay are recorded in the period when the employees

a. earn them
b. retire
c. use them
he employees