Understanding FICA Taxes and Unemployment: Explained in 10 Key

1. FICA consists of taxes for Social Security and _Medicare__________.DERMICEA Unscramble 2. FICA taxes are paid by both the employee and the ___employer______________.YRMPEOEL Unscramble 3. State and federal __unemployment_____________ taxes are not withheld from employees' wages. TPNYEOMUMLENUnscramble 4. The __federal______ unemployment tax is often a net rate of 0.6% of each employee's first $7,000 of annual wages.LEERDAFUnscramble 5. An employee's hourly pay rate multiplied by the hours worked equals the employee's _gross______ wages.ORSGSUnscramble 6. A person who performs a service for a company but is not the company's employee is referred to as an _____independent____________ contractor.ENPNNIDDEETUnscramble 7. Amounts withheld from an employees' wages are reported as current __liabilities_________ until they are remitted.IBTLISEIALIUnscramble 8. Generally, employers with hourly paid employees will have to prepare an _adjusting___________ entry to accrue wages.NUTSAGIJDUnscramble 9. To achieve the matching principle, fringe benefits are best expensed in the period in which the employee has _earner________ them.DEANERUnscramble 10. The accrual of wages and fringe benefits will credit a ___liability________ account.BIAYIITLL Unscramble