Payroll Problems

Payroll Problems Assignment

Hi writer

For Questions #1-11, I am not sure which one is wrong.  Please take a look and see what is wrong and fix it.  Provide an explanation and show your work if it is a math problem.





Chapter 5 Quiz (90.91%)

Question 1

Match the following terms with the definitions by clicking first on the term and then the correct definition (to the right).


Reciprocal arrangements Extra state unemployment contributions made by the employers
Title XII advances Favorable employment records result in a lower SUTA tax
Negative-balance employers Annual Federal Unemployment Tax Return
Dumping Poor experience-rated companies form new companies with lower unemployment tax rates
Over $500 Pay FUTA tax with Schedule H of Form 1040
Merit rating Provide unemployment insurance coverage and payment of benefits to interstate workers
Form 940 Borrowings from federal government to pay unemployment compensation benefits
Household employers Employers whose reserve account has been charged with more benefits paid out than contributions made
Wage information reports Quarterly threshold for mandatory depositing of FUTA taxes
Voluntary contributions Quarterly reports submitted to the state listing employees, SSNs, and taxable wages


Question 2

The federal unemployment tax is imposed on employers, and thus, is not deducted from employees’ wages.

 a. True
 b. False


Question 3

For the purpose of the FUTA tax, members of partnerships are considered employees.

 a. True
 b. False
Question 4

Employer contributions made to employees’ 401(k) plans that are included in total payments on Form 940 are also then deducted as exempt payments.

 a. True
 b. False

Question 5

The payments of FUTA taxes are included with the payments of FICA and FIT taxes and are paid as one lump sum.

 a. True
 b. False



Question 6

If all wages were excluded from SUTA taxes, but were subject to FUTA, the FUTA tax rate would be 6.0%.

 a. True
 b. False


Question 7

Employers have to pay a FUTA tax on only the first $3,500 of each part-time employee’s earnings (1/2 of the full $7,000 limit).

 a. True
 b. False

Question 8

Truson Company paid a 4% SUTA tax on taxable wages of $108,500. The taxable wages under FUTA were $89,400. What was the net FUTA tax of Truson Company? Round your answer to the nearest cent.
$ (89,400 x 0.6%)



Question 9

Fred Stone is an employee of Henrock Company. During the first part of the year, Stone earned $4,340 while working in State Q. For the remainder of the year, the company transferred him to State S where he earned $27,000. Henrock Company’s tax rate in State Q is 4.6%, and in State S, 4.0% on the first $7,000.

If reciprocal arrangements exist between the two states, determine the SUTA tax that the company paid on Stone’s earnings in State S. Round your answer to the nearest cent.
$ (7000 x 4%)


Question 10

Englesbe Company’s FUTA tax liability was $289.50 FUTA tax for the 1st quarter; $129.80 for the 2nd quarter; $123.00 for the 3rd quarter; $16.00 for the 4th quarter. The company’s first required payment of FUTA taxes is $ (Round your answers to two decimal places).

(1 + 2 + 3 quarters > $500 pay)


Question 11

The information given below was taken from the payroll records of Clegg Company (Oregon employer) for 20–. Use the information to complete the partially illustrated Form 940 shown below. Assume that all taxes were deposited timely.

Total remuneration: $155,900

Included in the total remuneration is $3,000 of employer’s contributions to the employees’ 401(k) plans.

Remuneration in excess of $7,000: $66,670

Taxable remuneration by quarters:
1st quarter $43,700
2nd quarter $24,940
3rd quarter $14,360
4th quarter $3,230


If required, round your answers to two decimal places.







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