The Following Data Is for the January 19 Pay Date

question 30

Multiple Choice

The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries expense 522 $ 12,987.00
Federal withholding tax payable 220 $ 2,207.79
Social Security tax payable 221 ???
Medicare tax payable 222 ???
401(k) contributions payable 223 454.55
Health Insurance payable 224 944.15
State Income tax payable 227 324.68
Wages and salaries payable 226 8,134.55
Jan 19 Wages and salaries payable 226 8,134.55
Cash 101 8,134.55
Which of the following represents the missing Social Security and Medicare taxes, assuming that the health
Insurance is qualified under Section 125?

• A) Social Security tax, $204.15; Medicare tax, $792.35
• B) Social Security tax, $792.35; Medicare tax, $204.15
• C) Social Security tax, $746.66; Medicare tax, $174.62
• D) Social Security tax, $188.31; Medicare tax, $805.19

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Definitions:

Performance Management System

A strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.

Corrective Action

Steps taken to identify, eliminate, and prevent the recurrence of errors or problems in processes, products, or systems.

Legally Defensible

Capable of being maintained or upheld in a court of law, especially referring to actions, policies, or practices compliant with legal standards.

Performance Management System

A systematic process by which an organization involves its employees in improving organizational effectiveness and achieving goals.