Payroll & Bank Reconciliation Flashcards
The combination of the Social Security tax and the Medicare tax is referred to by the acronym:
FICA
The current rate for the Social Security (excluding Medicare tax) that is withheld from employees’ salaries and wages up to a specified amount is:
6.2%
The current rate for Medicare tax to be withheld from each employee’s gross wages is:
1.45%
The combined rate for the Social Security tax AND the Medicare tax to be withheld from each employee’s gross wages is ___%. What is the max wages that SS tax can be taken from?
7.65%
$118,500
What is the total amount of FICA that needs to be remitted by an employer for an employee earning $50,000?
$50,000 x 7.65% = $3,825
The pay earned by managers who are paid semi-monthly is referred to as:
Wage
The pay earned by managers who are paid semi-monthly is referred to as:
Salary
The federal form on which an employee indicates the number of exemptions/dependents to be used in calculating the amount of federal income tax withholding for the employee is the ____ form.
W-4
An example of a court-ordered employee withholding is:
Child support
The amount that an employee “clears” or “takes home” is the ___ pay.
Net
The Employer’s Quarterly Federal Tax Form used to report employment taxes, withholding amounts, deposits amounts, and amounts due to the IRS is _____.
Form 941
A cost paid by the employer to cover an employee’s work-related injury is:
Workman’s compensation insurance
An employee is hired at a pay rate of $10 per hour. During the past week, the employee worked 50 hours. The employee’s gross wages for the past week are:
$10 x 40 = $400
$15 x 10 = $150
$550
Checks that have been written by a company but have not yet been charged to the company’s checking account are referred to as:
Outstanding checks
A company’s receipts from September 30 that get deposited to the company’s bank account on October 1st are referred to as deposits __ ______.
In transit
