Question 1

Bob's Cake House's payroll for April includes the following data:
 
The employer's payroll tax for the period would be:

Accepted Answer

A) $1,558. 
B) $1,434. 
C) $1,935. 
D) $2,090. 
A) $1,558. 
B) $1,434. 
C) $1,935. 
D) $2,090.

Question 2

Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $117,000 for OASDI and 1.45% for Medicare.

Accepted Answer

A) $8,187.60 
B) $8,262.00 
C) $8,170.20 
D) $6,621.60 
A) $8,187.60 
B) $8,262.00 
C) $8,170.20 
D) $6,621.60

Question 3

The payroll taxes the employer is responsible for are:

Accepted Answer

A) FICA-OASDI. 
B) FICA-Medicare. 
C) State income taxes. 
D) A and B. 
A) FICA-OASDI. 
B) FICA-Medicare. 
C) State income taxes. 
D) A and B.

Question 4

Under the Fair Labor Standards Act,for any hours that an employee works over 40 during a work week:

Accepted Answer

A) the employee must be paid double. 
B) the employee is paid time and a half. 
C) the employee must receive the minimum wage. 
D) the employee must be paid at straight-time pay. 
A) the employee must be paid double. 
B) the employee is paid time and a half. 
C) the employee must receive the minimum wage. 
D) the employee must be paid at straight-time pay.

Question 5

Workers' compensation insurance is deducted from employees' checks.

Accepted Answer

A) True 
 B)False

Question 6

An employer can reduce the federal unemployment tax rate by paying the state unemployment tax on time.

Accepted Answer

A) True 
 B)False

Question 7

Compute the net pay for each employee.The FICA tax rate is: OASDI 6.2% on a limit of $117,000;Medicare is 1.45%;federal income tax is 15%;state income tax is 5%;and medical insurance is $100 per employee.
 $\begin{array}{lll}&\text { Cumulative Pay }&\text { This Week's Pay }\
\text { Sarah Ahti } & \$ 75,000 & \$ 3,500 \
\text { Matt DeFore } & \$ 62,000 & \$ 2,500
\end{array}$

Accepted Answer

The answer of Compute the net pay for each employee.The...

Question 8

The law that governs overtime earnings is called:

Accepted Answer

A) State Wage Control Act. 
B) Federal Wage and Hour Law. 
C) Fair Labor Standards Act. 
D) Both B and C are correct. 
A) State Wage Control Act. 
B) Federal Wage and Hour Law. 
C) Fair Labor Standards Act. 
D) Both B and C are correct.

Question 9

Bob Smith's hourly rate is $35.00,and he worked 38 hours during the week.What is his gross pay for the week?

Accepted Answer

A) $1,330 
B) $780 
C) $1,400 
D) $975 
A) $1,330 
B) $780 
C) $1,400 
D) $975

Question 10

Payroll tax deductions represent expenses to the employer.

Accepted Answer

A) True 
 B)False

Question 11

The taxable earnings column of the payroll register records the tax due.

Accepted Answer

A) True 
 B)False

Question 12

Given the following payroll items you are to identify whether they are the responsibility of the employer and/or the employee by placing an X in the appropriate column.
-$$\begin{array} { | l | l | l | } 
\hline & \text { Employer } & \text { Employee } \
\hline \text { FICA-OASDI } & & \
\hline
\end{array}$$

Accepted Answer

The answer of Given the following payroll items you are...

Question 13

The use of a payroll register to record a company's payroll is not optional.

Accepted Answer

A) True 
 B)False

Question 14

Regular earnings include hours of overtime worked during the weekend.

Accepted Answer

A) True 
 B)False

Question 15

As the Prepaid Workers' Compensation is recognized,the amount will transfer to:

Accepted Answer

A) Workers' Compensation Insurance Payable. 
B) Workers' Compensation Insurance Expense. 
C) Wages and Salaries Expense. 
D) Payroll Tax Expense. 
A) Workers' Compensation Insurance Payable. 
B) Workers' Compensation Insurance Expense. 
C) Wages and Salaries Expense. 
D) Payroll Tax Expense.

Question 16

Bob Stein's hourly wage is $45.00,and he worked 42 hours during the week.Assuming an overtime rate of time and a half over 40 hours,Bob's gross pay is:

Accepted Answer

A) $1,935. 
B) $1,720. 
C) $2,580. 
D) $1,600. 
A) $1,935. 
B) $1,720. 
C) $2,580. 
D) $1,600.

Question 17

The payroll register includes sections for recording:

Accepted Answer

A) gross pay,deductions,and net pay. 
B) assets,liabilities,equity,revenues,and expenses. 
C) employee home address and phone number. 
D) accrued expenses,unearned revenues,and net pay. 
A) gross pay,deductions,and net pay. 
B) assets,liabilities,equity,revenues,and expenses. 
C) employee home address and phone number. 
D) accrued expenses,unearned revenues,and net pay.

Question 18

A maximum earnings limit is set for all FICA taxes.

Accepted Answer

A) True 
 B)False

Question 19

The Federal Insurance Contributions Act is better known as:

Accepted Answer

A) FIT. 
B) overtime laws. 
C) FUTA. 
D) FICA. 
A) FIT. 
B) overtime laws. 
C) FUTA. 
D) FICA.

Question 20

If Robert worked 39 hours,how many hours of overtime will Robert earn?

Accepted Answer

A) 0 
B) 1 
C) 9 
D) 4 
A) 0 
B) 1 
C) 9 
D) 4

Exam 7: Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Bob's Cake House's payroll for April includes the following data: The employer's payroll tax for the period would be:

Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $117,000 for OASDI and 1.45% for Medicare.

The payroll taxes the employer is responsible for are:

Under the Fair Labor Standards Act,for any hours that an employee works over 40 during a work week:

Workers' compensation insurance is deducted from employees' checks.

An employer can reduce the federal unemployment tax rate by paying the state unemployment tax on time.

Compute the net pay for each employee.The FICA tax rate is: OASDI 6.2% on a limit of $117,000;Medicare is 1.45%;federal income tax is 15%;state income tax is 5%;and medical insurance is $100 per employee. Cumulative Pay This Week's Pay Sarah Ahti \ 75,000 \ 3,500 Matt DeFore \ 62,000 \ 2,500

The law that governs overtime earnings is called:

Bob Smith's hourly rate is $35.00,and he worked 38 hours during the week.What is his gross pay for the week?

Payroll tax deductions represent expenses to the employer.

The taxable earnings column of the payroll register records the tax due.

Given the following payroll items you are to identify whether they are the responsibility of the employer and/or the employee by placing an X in the appropriate column. - Employer Employee FICA-OASDI

The use of a payroll register to record a company's payroll is not optional.

Regular earnings include hours of overtime worked during the weekend.

As the Prepaid Workers' Compensation is recognized,the amount will transfer to:

Bob Stein's hourly wage is $45.00,and he worked 42 hours during the week.Assuming an overtime rate of time and a half over 40 hours,Bob's gross pay is:

The payroll register includes sections for recording:

A maximum earnings limit is set for all FICA taxes.

The Federal Insurance Contributions Act is better known as:

If Robert worked 39 hours,how many hours of overtime will Robert earn?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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