R. L. Ybarra employs John Ince at a salary of $53,000 a year. Ybarra is subject to
employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45%
on John’s salary. In addition, Ybarra must pay SUTA tax at a rate of 5.4% and FUTA tax
at a rate of 0.8% on the first $7,000 of Ince’s salary. Compute the total cost to Ybarra of
employing Ince for the year.
The period of time required to purchase supplies and services and convert them back
into cash is the ____________________.
From the following list of accounts, prepare an income statement, statement of owner’s
equity, and balance sheet for the year ended or at December 31, 20–, for J. Carr’s
Delivery Service.
If an employer wishes, the FUTA tax may be deducted from employees’ earnings.
Banks providing check printing and processing will typically assess fees known as
____________________.
Copies of sales tickets or sales invoices issued to customers or clients provide
information about sales of goods or services.
The Fair Labor Standards Act provides that all employees covered by the act must be
paid one and one-half times the regular rate for all hours worked over 40 per week.
When a check is written to replenish the petty cash fund, it is entered in the journal by
debiting the proper accounts indicated in the Distributions columns of the petty cash
record and by crediting Cash.
Government laws and regulations regarding payroll are much more complex for
employees than for independent contractors.