Self Assessment Quizzes

CHAPTER 13: Section 2 Employer’s Payroll Taxes

	1.	Taxes paid by the employer to provide funds for workers who are temporarily out of work are called

		a.	unemployment taxes
		b.	FUTA taxes
		c.	SUTA taxes
		d.	All of the above

	2.	Medicare tax is calculated at

		a.	1.45% of gross earnings
		b.	6.2% of gross earnings
		c.	7.65% of gross earnings
		d.	.8% of gross earnings

	3.	The maximum federal unemployment tax is

		a.	6.20%
		b.	1.45%
		c.	7.65%
		d.	0.80%

	4.	Employers payroll taxes are considered

		a.	voluntary deductions
		b.	operating expenses
		c.	non-deductible
		d.	employees` responsibility

	5.	The employer`s payroll tax expense is recorded in the

		a.	Salaries Expense account
		b.	Social Security Tax Payable account
		c.	Federal Income Tax Payable account
		d.	Payroll Tax Expense account

	6.	State unemployment tax is also called

		a.	FUTA
		b.	FICA
		c.	SUTA
		d.	SITA