Question 1

SUTA tax is usually paid quarterly.

Accepted Answer

A) True 
 B)False  True

Question 2

Exempt wages means not taxable wages.

Accepted Answer

A) True 
 B)False  True

Question 3

Jim Ross is an automobile salesman who receives a salary of $500 per week plus a commission of 3% on all sales. During a four-week period he sold $42,000 worth of cars. What were Jim's average earnings?

Accepted Answer

A) $404 
B) $1,760 
C) $1,670 
D) $440 
E) None of these 
A) $404 
B) $1,760 
C) $1,670 
D) $440 
E) None of these E

Question 4

The number of dependents one claims does not affect the amount of Social Security and Medicare tax paid.

Accepted Answer

A) True 
 B)False

Question 5

There is a maximum amount of Medicare tax an employee can contribute in a calendar year.

Accepted Answer

A) True 
 B)False

Question 6

Janet Smooth pays her workers $175, $465, and $710, respectively, per week. Calculate what Janet will pay at the end of the first quarter for (A) state unemployment and (B) federal unemployment. Assume a state rate of 5.6%. Federal is .8%. Base is $7,000.

Accepted Answer

The answer of Janet Smooth pays her workers $175, $465,...

Question 7

A self-employed person has at least three employees.

Accepted Answer

A) True 
 B)False

Question 8

Leo Corporation pays its employees on a graduated commission scale: 6% on the first $40,000 in sales, 7% on sales from $40,000 to $80,000, and 9% on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:

Accepted Answer

A) $2,400 
B) $7,450 
C) $5,200 
D) $1,350 
E) None of these 
A) $2,400 
B) $7,450 
C) $5,200 
D) $1,350 
E) None of these

Question 9

FUTA tax is paid:

Accepted Answer

A) By an employee 
B) By the employer 
C) By both the employee and the employer 
D) Only weekly 
E) None of these 
A) By an employee 
B) By the employer 
C) By both the employee and the employer 
D) Only weekly 
E) None of these

Question 10

A merit rating system for SUTA means:

Accepted Answer

A) Rates cannot change 
B) State rates will always be lower 
C) Rate varies with employment record 
D) FUTA will increase 
E) None of these 
A) Rates cannot change 
B) State rates will always be lower 
C) Rate varies with employment record 
D) FUTA will increase 
E) None of these

Question 11

An employee's commission is always based on total dollar sales.

Accepted Answer

A) True 
 B)False

Question 12

Jasper works at Panera Company for $11.25 per hour plus a commission of 2% of her sales. Assuming Jasper worked 26 hours last week and had sales of $2,610, her gross pay is:

Accepted Answer

A) $290.50 
B) $344.70 
C) $351.20 
D) $342.00 
E) None of these 
A) $290.50 
B) $344.70 
C) $351.20 
D) $342.00 
E) None of these

Question 13

In the portion formula, the commission a worker receives would be the base.

Accepted Answer

A) True 
 B)False

Question 14

If you are paid twice a month, you are being paid:

Accepted Answer

A) Weekly 
B) Biweekly 
C) Semimonthly 
D) Monthly 
E) None of these 
A) Weekly 
B) Biweekly 
C) Semimonthly 
D) Monthly 
E) None of these

Question 15

David is paid on a graduated commission scale at Nooter Company. He receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:

Accepted Answer

A) $8,200 
B) $6,200 
C) $4,240 
D) $4,420 
E) None of these 
A) $8,200 
B) $6,200 
C) $4,240 
D) $4,420 
E) None of these

Question 16

Straight piece rate pay provides a worker an incentive to produce more since pay is based on the number of units produced.

Accepted Answer

A) True 
 B)False

Question 17

Jim Smith is a salesman who receives a $1,100 draw per week. He receives a 12% commission on all sales. Sales for Jim were $205,000 for the month. Assuming a four-week month, Jim's commission after the draw is: Three allowances
59)62 x 3 = 178.86 1200 - 178.86 = 1021.14
FIT 17.12 + 125.40 = 142.52
100 x .062 = 6.20
1200 x. 0145 = 17.40
1200 - 6.20 - 17.40 - 142.52 = 1033.88

Accepted Answer

A) $24,600 
B) $20,200 
C) $23,500 
D) $26,400 
E) None of these 
A) $24,600 
B) $20,200 
C) $23,500 
D) $26,400 
E) None of these

Question 18

Ron Swift earned $1,500 last week. He is married, is paid biweekly, and claims two exemptions. Using the percentage method (use tables in the handbook), his income tax is:

Accepted Answer

A) $109.69 
B) $116.40 
C) $100.91 
D) $140.88 
E) None of these 
A) $109.69 
B) $116.40 
C) $100.91 
D) $140.88 
E) None of these

Question 19

The employer will match the employee's Social Security and Medicare contribution.

Accepted Answer

A) True 
 B)False

Question 20

Percentage method tables can show:

Accepted Answer

A) Weekly period rates 
B) Biweekly payroll rates 
C) Semimonthly payroll rates 
D) Monthly payroll rates 
E) None of these 
A) Weekly period rates 
B) Biweekly payroll rates 
C) Semimonthly payroll rates 
D) Monthly payroll rates 
E) None of these

Exam 9: Payroll

SUTA tax is usually paid quarterly.

Exempt wages means not taxable wages.

Jim Ross is an automobile salesman who receives a salary of $500 per week plus a commission of 3% on all sales. During a four-week period he sold $42,000 worth of cars. What were Jim's average earnings?

The number of dependents one claims does not affect the amount of Social Security and Medicare tax paid.

There is a maximum amount of Medicare tax an employee can contribute in a calendar year.

Janet Smooth pays her workers $175, $465, and $710, respectively, per week. Calculate what Janet will pay at the end of the first quarter for (A) state unemployment and (B) federal unemployment. Assume a state rate of 5.6%. Federal is .8%. Base is $7,000.

A self-employed person has at least three employees.

Leo Corporation pays its employees on a graduated commission scale: 6% on the first $40,000 in sales, 7% on sales from $40,000 to $80,000, and 9% on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:

FUTA tax is paid:

A merit rating system for SUTA means:

An employee's commission is always based on total dollar sales.

Jasper works at Panera Company for $11.25 per hour plus a commission of 2% of her sales. Assuming Jasper worked 26 hours last week and had sales of $2,610, her gross pay is:

In the portion formula, the commission a worker receives would be the base.

If you are paid twice a month, you are being paid:

David is paid on a graduated commission scale at Nooter Company. He receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:

Straight piece rate pay provides a worker an incentive to produce more since pay is based on the number of units produced.

Ron Swift earned $1,500 last week. He is married, is paid biweekly, and claims two exemptions. Using the percentage method (use tables in the handbook), his income tax is:

The employer will match the employee's Social Security and Medicare contribution.

Percentage method tables can show:

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