Chapter 10 Flashcards
What are the two types of Unemployment tax withheld from an employee’s pay?
Federal Unemployment Tax Act (FUTA)
State Unemployment Tax Act (SUTA)
How do you compute gross earnings?
Hours worked TIMES hourly rate
According the the book, Social Security percentage is what?
6.2%
Gross earnings, deductions, and net pay are recorded in what register?
The Payroll Register
Where does a bookkeeper journalize payroll transactions?
The general ledger
Why is it important to maintain an earnings record for your employees?
To keep detailed information of all earnings of each employee and to assist with end of year gross earnings and deductions.
What are the four types of earning possibilities for an employee
Hourly rate, salary, commission rate, piece-rate.
A W-4 is necessary for an employee to insure what?
Withholding allowances for federal taxes.
What form does a contractor fill out?
1099
How do you calculate time & a half?
The hourly rate + half the hourly rate.
Example: $10/hour pay rate
Time = $10
half time = $5
Time & a half = $15.00
If an employee makes $10 an hour and works 40 hours? Does he make overtime?
No. Overtime is only for hours worked beyond 40.
The employer matches 2 of the following withholdings. Which 2 are they?
Social Security (FICA)
Medicare
Federal Unemployment Tax Act (FUTA)
State Unemployment Tax Act (SUTA)
Federal Income Tax
The employer matches only Social Security (FICA)
and Medicare.
Who decided on a 40 hour work week?
The Fair Labor Standards Act of 1938. Also called the Wage & Hour Law.
Who is required to keep the Wage & Hour Law?
Only firms engaging in interstate commerce. Business across State lines
Who pays the entire amount of the Federal Unemployment Tax Act (FUTA), the State Unemployment Tax Act (SUTA), and Worker’s Compensation Insurance?
Employer
