1. FICA is the total for Social Security of 12.4% and Medicare of 2.95% which will be paid half by the employer and half by the employee. However, independent contractors will pay only 6.2% for Social Security and 1.45% for Medicare to the Federal government.a) Falseb) Truec) FICA is not mandatoryd) Independent Contractors do not pay FICA During January 2021, ABC Inc. incurs employee salariesof $3,000,000. Federal income tax withholding was$450,000, State income tax was $187,500, and $30,000for the employee portion of health insurance (payable toBlue Cross). The employer portion for Health Care was$90,000.1. Record the employee salary expense, withholdingsincluding FICA (Emplyees' responsibility: SocialSecurity 6.2% and Medicare 1.45% of the grosspay), and salaries payable for January 20212. Record the employer-provided fringe benefits.3. Record the employer payroll taxes (Emplyers'responsibility: Social Security 6.2% and Medicare1.45% of the gross pay) (assuming no employeepassed the $7000 income limit on this first monthof January for FUTA 0.6% and SUTA 5.4%combined 6% of the first $7000 annual income)When ready, after preparing Journal Entries on paper,answer the following questions.

DISCLAIMER: “Since you have asked multiple questions, we will answer the first question. If you want…

1. FICA is the total for Social Security of 12.4% and Medicare of 2.95% which will be paid half by the employer and half by the employee. However, independent contractors will pay only 6.2% for Social Security and 1.45% for Medicare to the Federal government. a) False b) True c) FICA is not mandatory d) Independent Contractors do not pay FICA

1. FICA is the total for Social Security of 12.4% and Medicare of 2.95% which will be paid half by the employer and half by the employee. However, independent contractors will pay only 6.2% for Social Security and 1.45% for Medicare to the Federal government. a) False b) True c) FICA is not mandatory d) Independent Contractors do not pay FICA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Quintero Printing has the following information on their Form 941: (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base What amount should be entered in Column 1, Lines 5a and 5c? multiple choice $30,603.05 and $2,221.19, respectively $31,582.00 and $31,582.00, respectively $246,798.82 and $246,798.82, respectively $215,216.82 and $215,216.82, respectively
3
Which of the following statements are reasons employers may choose to delay eligibility of employees to participate in a retirement plan? 1. Employees do not start earning benefits until they become plan participants (except in defined benefit plans, which may count prior service). 2. Since turnover is generally highest for employees in their first few years of employment and for younger employees, it makes sense from an administrative standpoint to delay their eligibility. A. 1 only. B. 2 only. C. Both 1 and 2. D. Neither 1 nor 2.
Holton's Nursery has the following amounts listed on their Form 941: (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base.) 2 Wages, tips, and other compensation 3 Federal income tax withheld from wages, tips, and other compensation 4 If no wages, tips, and other compensation are subject to social security or Medicare tax 5a Taxable social security wages 5a (1) Qualified sick leave wages 5a (il) Qualified family leave wages 5b Taxable social security tips Sc Taxable Medicare wages & tips 5d Taxable wages & tips subject to Additional Medicare Tax withholding What amount belongs in Column 2, Line 5c? O $6,668.60 O $1,559.59 O $3.119.19 Column 1 107,558.13 0.124= * 0.062 = x 0.062 * 0.124 107,558.13 x 0.029- * 0.009 Column 2 2 3 107,558.13 12,400.00 X Check and go to line 6.
Indicate which federal department or agency would be responsible in the following scenarios: a. An employee wants to retire and apply for Canada Pension Plan benefit b. The new type of earning introduced in the company but not sure if it is insurable -
35. In a defined-benefit plan, a formula is used that defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees. requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee. defines the benefits that the employee will receive at the time of retirement. requires that pension expense and the cash funding amount be the same.
Regarding a self-employed individual, which statement is true? (a) A primary care physician who decided to train in plastic surgery would not be able to deduct the cost of doing so. (b) An engineer could deduct the cost of going to law school as long as she disavows ever taking the bar exam – she’s going to law school only to learn about patent law (“Helpful in my engineering career!”). (c) A CPA who was tired of doing audit work and went back to UTD to take or retake every graduate tax course in order to begin shifting her practice toward tax work could deduct the cost of doing so. (d) None of the above statements is true.
WCB premiums are deducted from an employee's pay. Question 5 options: True False
Pkease Do not Give image format Note .Prepare a partial income statement and balance sheet for the pension expense. *The pension expense on the Income statement is not $133,470.
Match with the right answer