Which of the following are mandatory payroll deductions required by law?

Correct answer: FICA taxes and income taxes.

Explanation

Payroll deductions are either mandatory (required by law, such as FICA and income taxes) or voluntary (authorized by the employee, such as union dues or retirement plan contributions).

Other questions

Question 1

According to the textbook, which of the following best defines a current liability?

Question 2

First National Bank agrees to lend Cole Williams Co. $100,000 on September 1, 2017, by having them sign a 12 percent, four-month note. What is the adjusting entry Cole Williams Co. must make on December 31, 2017?

Question 3

Cooley Grocery's cash register total for March 25 is $10,600, which includes a 6 percent sales tax. How should the journal entry to record daily sales and sales taxes be recorded?

Question 4

Superior University sells 10,000 season football tickets at $50 each for its five-game home schedule. What is the entry to recognize revenue after the first game is played?

Question 5

Wendy Construction issues a five-year, interest-bearing $25,000 note on January 1, 2016. The note specifies that each January 1, starting January 1, 2017, Wendy should pay $5,000 of the note. How should this debt be reported on the December 31, 2016 balance sheet?

Question 6

What is the term for a potential liability that may become an actual liability in the future, depending on the outcome of a future event?

Question 7

Under what circumstances should a contingent liability be recorded in the accounts?

Question 8

In 2017, Denson Manufacturing sells 10,000 units with a one-year warranty. Denson expects 5 percent of the units to be defective and warranty costs to average $80 per unit. What is the adjusting entry to accrue warranty costs at December 31, 2017?

Question 9

If a company has current assets of $504,000 and total current liabilities of $400,000, what is its working capital?

Question 10

What are the three components involved in determining payroll?

Question 11

Michael Jordan worked 44 hours in a week for Academy Company at a regular wage of $12 per hour. The company pays one-and-a-half times the regular rate for hours worked in excess of 40. What are Jordan's gross earnings for the week?

Question 13

If Mario Ruez has total wages of $124,000 for the year, and the FICA tax rate is 6.2 percent for Social Security up to $117,000 and 1.45 percent for Medicare on all wages, what is his total FICA tax contribution?

Question 14

Which of the following is an employer payroll tax?

Question 15

Academy Company's gross payroll for the week ending January 14 is $17,210. What is the journal entry to record this payroll?

Question 16

What is the primary purpose of the Wage and Tax Statement (Form W-2)?

Question 17

Which of the four functions of payroll activities should be assigned to different departments or individuals for effective internal control?

Question 18

If 30 employees of Academy Company earn an average of $110 per day, what is the monthly accrual for vacation benefits, assuming they earn one day's vacation for each month worked?

Question 19

What is the key difference between a defined-contribution pension plan and a defined-benefit pension plan?

Question 20

If a company has a contingent liability that is 'reasonably possible', how should it be reported in the financial statements?

Question 21

A retailer's cash register shows total receipts of $25,680, which includes a 7 percent sales tax. What is the amount of Sales Taxes Payable?

Question 22

Which of the following describes the payment of a liability for accrued vacation benefits?

Question 23

If a company’s current assets are $350,000 and its current liabilities are $202,000, what is its current ratio?

Question 24

Which of these is NOT a tax levied on employers?

Question 25

In the journal entry to record employer payroll taxes for Academy Company's January 14 payroll, what amount is credited to State Unemployment Taxes Payable?

Question 26

If a company borrows $60,000 on July 1 by signing a 10 percent, one-year note, what is the adjusting entry on December 31?

Question 27

What is the payroll record that accumulates the gross earnings, deductions, and net pay by employee for each pay period?

Question 28

Federal Unemployment Tax Act (FUTA) taxes are paid by which party?

Question 29

In a defined-contribution pension plan, what is specified by the plan?

Question 30

If Erin Berge worked 42 hours in a week at a regular rate of $18 per hour (with overtime at 1.5 times the regular rate), what are her gross earnings?

Question 31

What does liquidity refer to?

Question 32

If a company's gross payroll is $80,000 and it is subject to a 5.4 percent state unemployment tax and a 0.8 percent federal unemployment tax, what is the total employer unemployment tax expense?

Question 33

What is the federal law enacted to curb abuses in the administration and funding of pension plans?

Question 34

When a company collects sales tax from a customer, how is the sales tax amount recorded?

Question 35

The term 'payroll' as used in accounting pertains to payments made to which group?

Question 36

Historically, what was considered the standard for a good current ratio?

Question 37

What is the net federal unemployment tax rate after applying the maximum offset credit?

Question 38

The journal entry to record employer payroll tax expense typically includes a credit to all of the following accounts EXCEPT:

Question 39

When a company remits collected sales taxes to the taxing agency, what is the journal entry?

Question 40

Which of the following is an example of a voluntary payroll deduction?

Question 41

If a company has a lawsuit liability that is probable but the amount cannot be reasonably estimated, how should it be treated?

Question 42

For the weekly payroll of Michael Jordan shown in Illustration 11-12, what is his net pay?

Question 43

What is the federal tax that provides benefits for employees who lose their jobs through no fault of their own?

Question 44

In the journal entry to record employer payroll tax expense, the total amount is debited to:

Question 45

Ordinarily, which is the only type of paid absence that is accrued by companies?

Question 46

If a company has working capital of $104,000 and a current ratio of 1.26:1, what are its total current liabilities?

Question 47

What are the three parties involved in a pension plan?

Question 48

If a company has a lawsuit liability that is deemed 'remote', what is the appropriate accounting treatment?

Question 49

The wage base limit of $117,000 for FICA taxes applies to which component?

Question 50

Which internal control function is primarily responsible for preparing hiring authorization forms for new hires?