Question Details

Roxy Co., which has a taxable payroll 



1.	Palco Co., which has a taxable payroll of $900,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the company- state rate has been reduced to 2%.  What is the total amount of federal and state unemployment tax for Palco Co.?
a.	$104,400
b.	$73,800
c.	$36,000
d.	$25,200

	2.	Roxy Co., which has a taxable payroll of $600,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the company- state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Roxy Co.?
a.	$70,200
b.	$49,200
c.	$24,000
d.	$16,800

	3.	A company gives each of its 50 employees (assume they were all employed continuously through 2014 and 2015) 12 days of vacation a year if they are employed at the end of the year.  The vacation accumulates and may be taken starting January 1 of the next year.  The employees work 8 hours per day.  In 2014, they made $21 per hour and in 2015 they made $24 per hour.  During 2015, they took an average of 9 days of vacation each.  The company- policy is to record the liability existing at the end of each year at the wage rate for that year. What amount of vacation liability would be reflected on the 2014 and 2015 balance sheets, respectively?
a.	$100,800; $140,400
b.	$115,200; $144,000
c.	$100,800; $144,000
d.	$115,200; $140,400

	4.	A company gives each of its 50 employees (assume they were all employed continuously through 2014 and 2015) 12 days of vacation a year if they are employed at the end of the year.  The vacation accumulates and may be taken starting January 1 of the next year.  The employees work 8 hours per day.  In 2014, they made $24.50 per hour and in 2015 they made $28 per hour.  During 2015, they took an average of 9 days of vacation each.  The company- policy is to record the liability existing at the end of each year at the wage rate for that year.  What amount of vacation liability would be reflected on the 2014 and 2015 balance sheets, respectively?
a.	$117,600; $163,800
b.	$134,400; $168,000
c.	$117,600; $168,000
d.	$134,400; $163,800

	5.	The total payroll of Trolley Company for the month of October, 2014 was $800,000, of which $150,000 represented amounts paid in excess of $106,800 to certain employees.  $500,000 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $150,000 of federal income taxes and $15,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee- wages to $106,800 and 1.45% in excess of $106,800.  What amount should Trolley record as payroll tax expense?
a.	$72,800.
b.	$66,300.
c.	$57,300.
d.	$61,200.





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