Question 1

List the purposes of Federal Insurance Contributions Act.

Accepted Answer

The Federal Insurance Contributions Act

Question 2

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

Accepted Answer

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

Question 3

An allowance or exemption represents a certain amount of a person's income that will be considered nontaxable.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

Valerie Chandler works 42 hours as a coffee barista and earns $12 per hour.Compute her weekly pay assuming an overtime rate of 1.5.

Accepted Answer

A) $552 
B) $516 
C) $480 
D) $624 
A) $552 
B) $516 
C) $480 
D) $624

Question 6

The amount withheld for FICA is based on the W-4 form.

Accepted Answer

A) True 
 B)False

Question 7

If the employee has $300 withheld from their check for FICA-OASDI,what is the amount that the employer would need to pay?

Accepted Answer

A) $300 
B) $100 
C) $0 
D) $400 
A) $300 
B) $100 
C) $0 
D) $400

Question 8

A maximum limit is set for all FICA taxes.

Accepted Answer

A) True 
 B)False

Question 9

The amount of FICA-OASDI and FICA-Medicare withheld from the employee's check is determined by the employee's:

Accepted Answer

A) take-home pay. 
B) net pay. 
C) earnings for the period and cumulative earnings. 
D) W-4. 
A) take-home pay. 
B) net pay. 
C) earnings for the period and cumulative earnings. 
D) W-4.

Question 10

Employers pay the following payroll taxes,except:

Accepted Answer

A) FICA-OASDI. 
B) Federal income tax. 
C) Workers' Compensation. 
D) FICA-Medicare. 
A) FICA-OASDI. 
B) Federal income tax. 
C) Workers' Compensation. 
D) FICA-Medicare.

Question 11

Insurance paid in advance by employers to protect their employees against loss due to injury or death incurred during employment is:

Accepted Answer

A) life insurance. 
B) worker's compensation insurance. 
C) liability insurance. 
D) health insurance. 
A) life insurance. 
B) worker's compensation insurance. 
C) liability insurance. 
D) health insurance.

Question 12

The payroll register:

Accepted Answer

A) is a worksheet. 
B) shows all employee information related to an entire pay period. 
C) keeps track of an individual employee's payroll history for a calendar year. 
D) Both A and B are correct. 
A) is a worksheet. 
B) shows all employee information related to an entire pay period. 
C) keeps track of an individual employee's payroll history for a calendar year. 
D) Both A and B are correct.

Question 13

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 14

A summary record of each person's earnings,deductions,and net pay is called a(n):

Accepted Answer

A) payroll register. 
B) W-4. 
C) employee individual earnings record. 
D) general journal. 
A) payroll register. 
B) W-4. 
C) employee individual earnings record. 
D) general journal.

Question 15

An employee has gross earnings of $1,000 with withholdings of 6.2% FICA-OASDI,1.45% FICA-Medicare,$50 for federal income tax and $10 for state income tax.How much is the net pay?

Accepted Answer

A) $900.00 
B) $781.15 
C) $863.50 
D) $791.15 
A) $900.00 
B) $781.15 
C) $863.50 
D) $791.15

Question 16

All states charge a state income tax.

Accepted Answer

A) True 
 B)False

Question 17

When calculating the employer's payroll tax expense the clerk forgot about the wage base limits,this will cause:

Accepted Answer

A) the expenses to be overstated. 
B) the assets to be overstated. 
C) the liabilities to be overstated. 
D) Both A and C are correct. 
A) the expenses to be overstated. 
B) the assets to be overstated. 
C) the liabilities to be overstated. 
D) Both A and C are correct.

Question 18

Another name for the Fair Labor Standards Act is:

Accepted Answer

A) Federal Insurance Contribution Act. 
B) Federal Wage and Hour Law. 
C) Federal Income Tax Act. 
D) Federal Hourly Law. 
A) Federal Insurance Contribution Act. 
B) Federal Wage and Hour Law. 
C) Federal Income Tax Act. 
D) Federal Hourly Law.

Question 19

What is the purpose of the Fair Labor Standards Act?

Accepted Answer

The purpose of the Fair Labor Standards

Question 20

An employee has gross earnings of $1000 and withholdings of $60 FICA (OASDI and Medicare),and $50 for income taxes (FIT and SIT).The employer pays $60 FICA (OASDI and Medicare),$10 for SUTA,and $5.60 FUTA.What is the employer's total cost of the employee?

Accepted Answer

A) $915.60 
B) $1,085.60 
C) $975.60 
D) $1,035.60 
A) $915.60 
B) $1,085.60 
C) $975.60 
D) $1,035.60

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

List the purposes of Federal Insurance Contributions Act.

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 FICA-Medicare

An allowance or exemption represents a certain amount of a person's income that will be considered nontaxable.

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 Federal income tax

Valerie Chandler works 42 hours as a coffee barista and earns $12 per hour.Compute her weekly pay assuming an overtime rate of 1.5.

The amount withheld for FICA is based on the W-4 form.

If the employee has $300 withheld from their check for FICA-OASDI,what is the amount that the employer would need to pay?

A maximum limit is set for all FICA taxes.

The amount of FICA-OASDI and FICA-Medicare withheld from the employee's check is determined by the employee's:

Employers pay the following payroll taxes,except:

Insurance paid in advance by employers to protect their employees against loss due to injury or death incurred during employment is:

The payroll register:

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.

A summary record of each person's earnings,deductions,and net pay is called a(n):

An employee has gross earnings of $1,000 with withholdings of 6.2% FICA-OASDI,1.45% FICA-Medicare,$50 for federal income tax and $10 for state income tax.How much is the net pay?

All states charge a state income tax.

When calculating the employer's payroll tax expense the clerk forgot about the wage base limits,this will cause:

Another name for the Fair Labor Standards Act is:

What is the purpose of the Fair Labor Standards Act?

An employee has gross earnings of $1000 and withholdings of $60 FICA (OASDI and Medicare),and $50 for income taxes (FIT and SIT).The employer pays $60 FICA (OASDI and Medicare),$10 for SUTA,and $5.60 FUTA.What is the employer's total cost of the employee?

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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