Question 1

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 2

Ocean's Auction House's payroll for April includes the following data: $$\begin{array} { | l | r | } 
\hline \text { Gross salaries } & \$ 20,000 \
\hline \text { Salaries subject to FICA: } & \
\hline 6.2 \% \text { Social Security } & 17,500 \
\hline 1.45 \% \text { Medicare } &20,000 \
\hline \text { Salaries subject to: } &  \
\hline \text { 0.8\% FUTA } & 1,000 \
\hline \text {2.7\%  SUTA } & 1,000 \
\hline
\end{array}$$ The employer's payroll tax for the period would be:

Accepted Answer

A) $1,558. 
B) $1,403. 
C) $1,935. 
D) $2,090. 
A) $1,558. 
B) $1,403. 
C) $1,935. 
D) $2,090.

Question 3

Ocean's Auction House's payroll for April includes the following data: $$\begin{array} { | l | r | } 
\hline \text { Gross earnings } & \$ 2,900 \
\hline \text { Salaries subject to FICA: } & \
\hline 6.2 \% \text { OASDI } & 2,550 \
\hline 1.45 \% \text { Medicare } & 3,000 \
\hline \text { Salaries subject to unemployment: } & \
\hline 0.8 \% \text { FUTA } & 2,000 \
\hline 2.0 \% \text { SUTA } & 2,000 \
\hline \text { Other deductions include: } & 500 \
\hline \text { Federal income tax } & 300 \
\hline \text { State income tax } & \$ 20 \
\hline
\end{array}$$What is the gross pay?

Accepted Answer

A) $1,998.40 
B) $1,942.40 
C) $2,900.00 
D) $2,798.40 
A) $1,998.40 
B) $1,942.40 
C) $2,900.00 
D) $2,798.40

Question 4

Compute net earnings on March 3,when gross (taxable)pay equals $750.FICA-OASDI tax rates are 6.2%,FICA-Medicare rate is 1.45%,federal income tax $71.00,and state income tax $5.00.

Accepted Answer

A) $615.00 
B) $610.00 
C) $616.62 
D) $672.12 
A) $615.00 
B) $610.00 
C) $616.62 
D) $672.12

Question 5

A calendar quarter consists of:

Accepted Answer

A) 13 weeks. 
B) 12 weeks. 
C) 14 weeks. 
D) 4 months. 
A) 13 weeks. 
B) 12 weeks. 
C) 14 weeks. 
D) 4 months.

Question 6

Net pay is equal to gross pay less deductions.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

\[\begin{array} { | l | c | c

Question 8

Regular earnings are equal to total earnings less deductions.

Accepted Answer

A) True 
 B)False

Question 9

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 person 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 person who have become disabled. 
D) All of the above are correct.

Question 10

The two parts of FICA are OASDI and Medicare.

Accepted Answer

A) True 
 B)False

Question 11

FICA-Medicare provides for medical benefits after age 65.

Accepted Answer

A) True 
 B)False

Question 12

An employee earns $32 per hour.She worked 55 hours the third week of January.
Calculate the gross 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

$2,000 [($

Question 13

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 14

FICA (OASDI and Medicare)and unemployment taxes are similar in that they:

Accepted Answer

A) are paid by the employee. 
B) have the same maximum taxable wage base. 
C) are a specified percent of federal income tax withholdings. 
D) are payroll tax expenses of the employer. 
A) are paid by the employee. 
B) have the same maximum taxable wage base. 
C) are a specified percent of federal income tax withholdings. 
D) are payroll tax expenses of the employer.

Question 15

The number of allowances claimed by an employee determines how much will be withheld from their paycheck for:

Accepted Answer

A) FICA-OASDI. 
B) FICA-Medicare. 
C) federal income tax. 
D) All of these answers are correct. 
A) FICA-OASDI. 
B) FICA-Medicare. 
C) federal income tax. 
D) All of these answers are correct.

Question 16

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 one of two primary records used to track payroll information. 
D) Both B and C are 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 one of two primary records used to track payroll information. 
D) Both B and C are correct.

Question 17

Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $106,800 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 18

Which report would an employer review if they wanted to check how much an employee has earned to date?

Accepted Answer

A) Individual employee earnings record 
B) Payroll register 
C) W-4 form 
D) None of these answers are correct. 
A) Individual employee earnings record 
B) Payroll register 
C) W-4 form 
D) None of these answers are correct.

Question 19

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 6.2% 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 6.2% standard rate. 
D) All of the above are correct.

Question 20

For which of the following taxes is there a ceiling on the amount of employee annual earnings subject to the tax?

Accepted Answer

A) Federal unemployment taxes 
B) State unemployment taxes 
C) FICA-OASDI 
D) All of these answers are correct. 
A) Federal unemployment taxes 
B) State unemployment taxes 
C) FICA-OASDI 
D) All of these answers are correct.

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

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

Ocean's Auction House's payroll for April includes the following data: Gross salaries \ 20,000 Salaries subject to FICA: 6.2\% Social Security 17,500 1.45\% Medicare 20,000 Salaries subject to: 0.8\% FUTA 1,000 2.7\% SUTA 1,000 The employer's payroll tax for the period would be:

Compute net earnings on March 3,when gross (taxable)pay equals $750.FICA-OASDI tax rates are 6.2%,FICA-Medicare rate is 1.45%,federal income tax $71.00,and state income tax $5.00.

A calendar quarter consists of:

Net pay is equal to gross pay less deductions.

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

Regular earnings are equal to total earnings less deductions.

FICA taxes provide funding to the government to pay:

The two parts of FICA are OASDI and Medicare.

FICA-Medicare provides for medical benefits after age 65.

An employee earns $32 per hour.She worked 55 hours the third week of January. Calculate the gross 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% $ ________

FICA (OASDI and Medicare)and unemployment taxes are similar in that they:

The number of allowances claimed by an employee determines how much will be withheld from their paycheck for:

The employee earnings record:

Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $106,800 for OASDI and 1.45% for Medicare.

Which report would an employer review if they wanted to check how much an employee has earned to date?

A FUTA tax credit:

For which of the following taxes is there a ceiling on the amount of employee annual earnings subject to the tax?

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: The Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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