Art Parrish,the Sole Employee of Parrish Sales,has Gross Salary for March

question 139

True/False

Art Parrish,the sole employee of Parrish Sales,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $106,800,and thus subject to FICA.He is also subject to federal income tax at a rate of 18%.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.The fifth journal entry in the payroll cycle to record the payment by the company of payroll taxes to the government includes a debit to FICA payable of $306.

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Definitions:

Norm Referencing

A method of scoring in which test scores are compared to a group of other scores called the norm group.

Norm Group

A reference population used to establish benchmarks or standards for comparing and interpreting the scores of individual test-takers.

Adolescents

Individuals in the transitional stage of human development that occurs between childhood and adulthood, typically between the ages of 10 and 19.

Adults

Individuals who have reached the age of maturity as defined by legal, social, or cultural standards, typically gaining responsibilities and rights associated with adulthood.