Question 1

If a firm has fewer than 100 employees,which of the following is true?

Accepted Answer

A)  It must offer an ESOP. 
B)  Direct deposit of employee pay is mandatory. 
C)  It must match employee contributions to federal income tax. 
D)  It may offer a SIMPLE defined contribution plan. 
A)  It must offer an ESOP. 
B)  Direct deposit of employee pay is mandatory. 
C)  It must match employee contributions to federal income tax. 
D)  It may offer a SIMPLE defined contribution plan.

Question 2

Health Savings Accounts may be used as pre-tax deductions for which type of costs (Select all that apply)?

Accepted Answer

A)  Child medical expenses 
B)  Gasoline expenses 
C)  Long-term care expenses 
D)  Prescription expenses 
A)  Child medical expenses 
B)  Gasoline expenses 
C)  Long-term care expenses 
D)  Prescription expenses

Question 3

Amity is an employee with a period gross pay of $2,000.She elects to have 3% of her gross pay withheld for her 401(k)contribution.What will be her taxable income be for federal income taxes?

Accepted Answer

A)  $2,000 
B)  $1,970 
C)  $1,940 
D)  $1,910 
A)  $2,000 
B)  $1,970 
C)  $1,940 
D)  $1,910

Question 4

Which Act extended health care benefits to employee dependents until age 26?

Accepted Answer

A)  Health Insurance Portability and Affordability Act 
B)  Americans with Disabilities Act 
C)  Family Medical Leave Act 
D)  Affordable Care Act 
A)  Health Insurance Portability and Affordability Act 
B)  Americans with Disabilities Act 
C)  Family Medical Leave Act 
D)  Affordable Care Act

Question 5

The percentage method of determining an employee's federal income tax deductions __________________.

Accepted Answer

A)  Is used to promote complexity in payroll practices 
B)  Allows payroll accountants to determine federal income tax for the firm itself 
C)  Is used primarily for high wage earners and computerized payroll programs 
D)  Is less accurate than the results gained from using the wage-bracket method 
A)  Is used to promote complexity in payroll practices 
B)  Allows payroll accountants to determine federal income tax for the firm itself 
C)  Is used primarily for high wage earners and computerized payroll programs 
D)  Is less accurate than the results gained from using the wage-bracket method

Question 6

Janna is a salaried nonexempt employee in Laramie,Wyoming,who earns $30,000 for a standard 40-hour workweek and is paid biweekly.She is single with one withholding allowance.During the last pay period,she worked 5 hours of overtime.She contributes 3% of her gross pay to her 401(k)on a pre-tax basis and has a garnishment of 10% of her disposable income for a consumer credit garnishment.What is her net pay? (Use the wage-bracket method.Do not round interim calculations,only round final answer to two decimal points. )

Accepted Answer

A)  $998.90 
B)  $913.90 
C)  $894.07 
D)  $886.96 
A)  $998.90 
B)  $913.90 
C)  $894.07 
D)  $886.96

Question 7

Ross is a full-time employee in Provo,Utah,who earns $42,000 annually,paid semimonthly.His federal income tax is $155.00.What is the maximum amount that may be withheld from his pay for a child-support garnishment,assuming he is not in arrears? (Do not round interim calculations,only round final answer to two decimal points.Utah has a 5% flat tax. )

Accepted Answer

A)  $365.28 
B)  $686.81 
C)  $584.45 
D)  $876.68 
A)  $365.28 
B)  $686.81 
C)  $584.45 
D)  $876.68

Question 8

Two classes of deductions exist: pre-tax and post-tax.

Accepted Answer

A) True 
 B)False

Question 9

Renee is a salaried exempt employee who earns an annual salary of $64,200,which is paid semimonthly.She is married with four withholding allowances.What is her total FICA tax liability per pay period? (Do not round interim calculations,only round final answer to two decimal points. )

Accepted Answer

A)  $165.85 
B)  $38.79 
C)  $204.64 
D)  $409.28 
A)  $165.85 
B)  $38.79 
C)  $204.64 
D)  $409.28

Question 10

Manju is a full-time exempt employee living in Illinois who earns $43,680 annually and is paid biweekly.She is married with three withholding allowances.What is the total of her federal and state income tax deductions for the most recent pay period? (Use the wage bracket tables.Illinois state income tax rate is 3.75%.Round final answer to two decimal points. )

Accepted Answer

A)  $158 
B)  $162 
C)  $156 
D)  $166 
A)  $158 
B)  $162 
C)  $156 
D)  $166

If a firm has fewer than 100 employees,which of the following is true?

Health Savings Accounts may be used as pre-tax deductions for which type of costs (Select all that apply)?

Amity is an employee with a period gross pay of $2,000.She elects to have 3% of her gross pay withheld for her 401(k)contribution.What will be her taxable income be for federal income taxes?

Which Act extended health care benefits to employee dependents until age 26?

The percentage method of determining an employee's federal income tax deductions __________________.

Two classes of deductions exist: pre-tax and post-tax.

Renee is a salaried exempt employee who earns an annual salary of $64,200,which is paid semimonthly.She is married with four withholding allowances.What is her total FICA tax liability per pay period? (Do not round interim calculations,only round final answer to two decimal points. )

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Employer Payroll Taxes and Labor Planning

Payroll Register, employees Earning Records, and Accounting System Entries

Filters

Exam 4: Employee Net Pay and Pay Methods

If a firm has fewer than 100 employees,which of the following is true?

Health Savings Accounts may be used as pre-tax deductions for which type of costs (Select all that apply)?

Amity is an employee with a period gross pay of $2,000.She elects to have 3% of her gross pay withheld for her 401(k)contribution.What will be her taxable income be for federal income taxes?

Which Act extended health care benefits to employee dependents until age 26?

The percentage method of determining an employee's federal income tax deductions __________________.

Two classes of deductions exist: pre-tax and post-tax.

Renee is a salaried exempt employee who earns an annual salary of $64,200,which is paid semimonthly.She is married with four withholding allowances.What is her total FICA tax liability per pay period? (Do not round interim calculations,only round final answer to two decimal points. )

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Employer Payroll Taxes and Labor Planning

Payroll Register, employees Earning Records, and Accounting System Entries

Filters