21 steve an employee of panache inc has gross salary for march of 5 000 the entire a 4306616

21) Steve, an employee of Panache Inc., has gross salary for March of $5,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry in the payroll cycle to record the employer's payroll tax expense includes a credit to FICA—OASDI Taxes Payable for $310. (Assume a FICA—OASDI Tax of 6.2% and FICA—Medicare Tax of 1.45 %.)

22) Steve, an employee of Panache Inc., has gross salary for March of $5,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry in the payroll cycle to record employer's payroll tax expense includes a credit to FICA—Medicare Taxes Payable for $145. (Assume a FICA—OASDI Tax of 6.2% and FICA—Medicare Tax of 1.45 %.)

23) The journal entry in the payroll cycle to record the employer's payroll tax expense will include a debit to Employee Income Taxes Payable.

24) Panache Inc. withholds $720 from Steve's paycheck for federal income tax. This amount is part of the company's payroll tax expense.

25) Steve, an employee of Panache Inc., has gross salary for March of $5,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. The total amount of employee FICA tax is $565. (Assume a FICA—OASDI Tax of 4.2% and FICA—Medicare Tax of 1.45 %.)

26) Which of the following is paid by the employer only?

A) OASDI tax

B) Medicare tax

C) Employee income tax

D) Federal unemployment tax

27) It is mandatory for both the employer and employee to pay ________.

A) FICA

B) SUTA

C) Employee income tax

D) Federal unemployment tax

28) Rocco earns $14.5 per hour for straight time (40 hours) and the company pays him time-and-a-half for overtime. He worked 43 hours at his job during the first week of March, 2015. What was Rocco's gross pay for the week?

A) $623.50

B) $628.00

C) $645.25

D) $935.25

29) Rocco earns $14.5 per hour with time-and-a-half for hours in excess of 40 per week. He worked 43 hours at his job during the first week of March, 2015. Rocco pays income taxes at 15% and 5.65% for OASDI and Medicare. All of his income is taxable under FICA. Determine Rocco's net pay for the week.

A) $548.46

B) $512.00

C) $446.75

D) $483.21

30) Which of the following is required to be deducted from employees' paychecks?

A) Federal income tax

B) SUTA

C) FUTA

D) Charitable contributions

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