Question 1

Jane works 43 hours at a rate of pay of $20 per hour.She receives double pay over 40 hours.What is her gross pay?

Accepted Answer

A) $860 
B) $720 
C) $780 
D) $920 
A) $860 
B) $720 
C) $780 
D) $920

Question 2

A FUTA tax credit:

Accepted Answer

A) is given to employers who pay their state unemployment taxes on time. 
B) is usually in the amount of 5.4% 
C) is applied against the 6.0% standard rate. 
D) All of the above are correct. 
A) is given to employers who pay their state unemployment taxes on time. 
B) is usually in the amount of 5.4% 
C) is applied against the 6.0% standard rate. 
D) All of the above are correct.

Question 3

All employees must contribute to Federal and State income tax.

Accepted Answer

A) True 
 B)False

Question 4

A calendar year is:

Accepted Answer

A) any 12-month period. 
B) a 12-month period beginning January 1 and ending on December 31. 
C) always the same as the company's fiscal year. 
D) None of the above answers are correct. 
A) any 12-month period. 
B) a 12-month period beginning January 1 and ending on December 31. 
C) always the same as the company's fiscal year. 
D) None of the above answers are correct.

Question 5

Which tax does not have a wage base limit?

Accepted Answer

A) State unemployment tax 
B) Federal unemployment tax 
C) FICA-Medicare 
D) FICA-OASDI 
A) State unemployment tax 
B) Federal unemployment tax 
C) FICA-Medicare 
D) FICA-OASDI

Question 6

A company can deem an employee as salaried:

Accepted Answer

A) if they do not want to pay overtime wages. 
B) if the employee meets the salaried laws under the Fair Labor Standards Act. 
C) if the employee works at least 40 hours a week for a month. 
D) if they have been employed at the company for 1 year or longer. 
A) if they do not want to pay overtime wages. 
B) if the employee meets the salaried laws under the Fair Labor Standards Act. 
C) if the employee works at least 40 hours a week for a month. 
D) if they have been employed at the company for 1 year or longer.

Question 7

All states charge a state income tax.

Accepted Answer

A) True 
 B)False

Question 8

Dave Brown's cumulative earnings are $108,000,and his gross pay for the week is $6,200.If the FICA rates are: OASDI 6.2% on a limit of $117,000 and Medicare is 1.45%,what are his FICA-OASDI and FICA-Medicare taxes for the week?

Accepted Answer

A) $0;$89.90 
B) $0;$0 
C) $384.40;$89.90 
D) $384.40;$0 
A) $0;$89.90 
B) $0;$0 
C) $384.40;$89.90 
D) $384.40;$0

Question 9

An employee earns $16 per hour.He worked 45 hours the last week of January (assuming time and a half for overtime).
Calculate the total amount of employee deductions.
The business is involved in interstate commerce.
Federal Income Tax rate = 20%
State Income Tax rate = 5%
FICA rate OASDI = 6.2% and Medicare = 1.45%
FUTA rate = .8%
SUTA rate = 5.6%
$ ________

Accepted Answer

$248.14 ($

Question 10

The employees collectively earn a gross wage of $90,000 for the pay period,but the employer says that they cost $97,000.Discuss the discrepancy.

Accepted Answer

The employees only consider th

Question 11

Which of the below allowances would have the least amount of taxes withheld for federal income tax purposes?

Accepted Answer

A) S-1 
B) S-0 
C) S-3 
D) S-2 
A) S-1 
B) S-0 
C) S-3 
D) S-2

Question 12

The employee earnings record:

Accepted Answer

A) shows all employee information related to an entire pay period. 
B) keeps track of an individual employee's payroll history for a calendar year. 
C) is a substitute for a W-4. 
D) None of the above is correct. 
A) shows all employee information related to an entire pay period. 
B) keeps track of an individual employee's payroll history for a calendar year. 
C) is a substitute for a W-4. 
D) None of the above is correct.

Question 13

FICA-Medicare provides for medical benefits after age 65.

Accepted Answer

A) True 
 B)False

Question 14

FICA taxes provide funding to the government to pay:

Accepted Answer

A) monthly retirement benefits for persons over age 62. 
B) medical benefits for persons over age 65. 
C) benefits for persons who have become disabled. 
D) All of the above are correct. 
A) monthly retirement benefits for persons over age 62. 
B) medical benefits for persons over age 65. 
C) benefits for persons who have become disabled. 
D) All of the above are correct.

Question 15

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.
-$$\begin{array} { | l | l | l | } 
\hline & \text { Employer } & \text { Employee } \
\hline \text { Worker's compensation insurance } & & \
\hline
\end{array}$$

Accepted Answer

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

Question 16

Gross pay is the amount that the employee takes home.

Accepted Answer

A) True 
 B)False

Question 17

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.
-$$\begin{array} { | l | l | l | } 
\hline & \text { Employer } & \text { Employee } \
\hline \text { FUTA } & & \
\hline
\end{array}$$

Accepted Answer

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

Question 18

Prepaid Worker's Compensation Insurance is what type of account?

Accepted Answer

A) Asset 
B) Expense 
C) Liability 
D) Contra-asset 
A) Asset 
B) Expense 
C) Liability 
D) Contra-asset

Question 19

An employee earns $30 per hour.
She worked 49 hours the third week of January (assume time and a half for overtime)
Calculate the net pay.
The business is involved in interstate commerce.
Federal Income Tax rate = 20%
State Income Tax rate = 5%
FICA rate OASDI = 6.2% and Medicare = 1.45%
FUTA rate = .8%
SUTA rate = 5.6%
$ ________

Accepted Answer

$1,080.97 [(($30 × 4

Question 20

Which of the below allowances would have the most amount of taxes withheld for federal income tax purposes?

Accepted Answer

A) S-1 
B) S-0 
C) S-3 
D) S-2 
A) S-1 
B) S-0 
C) S-3 
D) S-2

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

Jane works 43 hours at a rate of pay of $20 per hour.She receives double pay over 40 hours.What is her gross pay?

A FUTA tax credit:

All employees must contribute to Federal and State income tax.

A calendar year is:

Which tax does not have a wage base limit?

A company can deem an employee as salaried:

All states charge a state income tax.

Dave Brown's cumulative earnings are $108,000,and his gross pay for the week is $6,200.If the FICA rates are: OASDI 6.2% on a limit of $117,000 and Medicare is 1.45%,what are his FICA-OASDI and FICA-Medicare taxes for the week?

The employees collectively earn a gross wage of $90,000 for the pay period,but the employer says that they cost $97,000.Discuss the discrepancy.

Which of the below allowances would have the least amount of taxes withheld for federal income tax purposes?

The employee earnings record:

FICA-Medicare provides for medical benefits after age 65.

FICA taxes provide funding to the government to pay:

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 Worker's compensation insurance

Gross pay is the amount that the employee takes home.

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 FUTA

Prepaid Worker's Compensation Insurance is what type of account?

Which of the below allowances would have the most amount of taxes withheld for federal income tax purposes?

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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