In the case of a part-time employee, the employer pays a FUTA tax on only the first $3,500

1. In the case of a part-time employee, the employer pays a FUTA tax on only the first $3,500 ofearnings (one-half the regular limit). True or False2. Sparks Company’s SUTA rate for next year is 3.25% because its reserve ratio falls into the state’s10% to less than 12% category [(contributions – benefits paid) ÷ average payroll = $414,867 ÷$3,521,790 = 11.78%]. If the next bracket (12% to less than 14%) would give the company alower tax rate of 3.05%, what would be the least amount of the voluntary contribution neededto qualify the company for the 3.05% SUTA tax rate? Round your answer to two decimal places.Answer: $_____________3. The wage and salaries expense account is an operating expense account debited for total netpay each payroll period. True or False4. A debit to the employees’ FIT payable account removes the liability for the amount of federalincome taxes withheld from employees’ wages. True or False5. Amounts withheld from employees’ wages for health insurance are credited to a liabilityaccount. True or False6. When withheld union dues are turned over to the union by the employer, a journal entry ismade debiting the liability account and crediting the cash account. True or False7. Under the Consumer Credit Protection Act, disposable earnings are the earnings remainingafter any deductions for health insurance. True or False8. Tips received by employees are not included as disposable earnings subject to garnishment.True or False9. FUTA Taxes Payable is an expense account in which are recorded the employer’s federalunemployment taxes. True or false10. The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.11. The entry to record the employer’s payroll taxes usually includes credits to the liabilityaccounts for FICA (OASDI and HI), FUTA, and SUTA taxes. True or False12. Since the credit against the FUTA tax (for SUTA contributions) is made on Form 940, theemployer’s payroll tax entries should include the FUTA tax at the gross amount (6.0%). True orFalse13. Since the FUTA tax is a social security tax, it can be charged to the same expense account asthe other payroll taxes on the employer, the payroll taxes account. True or False14. If employees must contribute to the state unemployment fund, this deduction should be shownin the payroll tax entry. True or False15. The adjusting entry to record the accrued vacation pay at the end of an accounting periodincludes credits to the tax withholding liability accounts. True or False16. The garnishment that takes priority over all others is: which is correct?a federal tax levy, a government student loan, an administrative wage garnishment,a child support order, a creditor17. In recording the monthly adjusting entry for accrued wages at the end of the accountingperiod, the amount of the adjustment would usually be determined by:A. using the wages of the salaried workers only.B. a percentage of the previous week’s net payroll.C. a percentage of the previous week’s gross payroll.D. collecting the timesheets for the days accrued.E. using the same amount as the prior month’s adjustment.18. In the case of multiple wage attachments, a garnishment for a student loan has priority overany other garnishmentIn the case of multiple wage attachments, a garnishment for a studentloan has priority over any other garnishment.