Question 1

Net pay is the same as:

Accepted Answer

A) gross pay. 
B) take-home pay. 
C) before taxes pay. 
D) pay before deductions. 
A) gross pay. 
B) take-home pay. 
C) before taxes pay. 
D) pay before deductions.

Question 2

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 3

What is required of an employer by the Federal Insurance Contributions Act?

Accepted Answer

The employer is required to withhold FIC

Question 4

To examine in detail the weekly payroll of all employees, one would look at the:

Accepted Answer

A) W-2. 
B) W-4. 
C) payroll register. 
D) employee earnings record. 
A) W-2. 
B) W-4. 
C) payroll register. 
D) employee earnings record.

Question 5

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 6

The employer's payroll taxes are deducted from the employee's paycheck.

Accepted Answer

A) True 
 B)False

Question 7

Payroll taxes include all of the following except:

Accepted Answer

A) federal income tax. 
B) state income tax. 
C) FICA-OASDI. 
D) All of the above are payroll taxes. 
A) federal income tax. 
B) state income tax. 
C) FICA-OASDI. 
D) All of the above are payroll taxes.

Question 8

From the following information, complete the chart for gross earnings for the week. Assume an overtime rate of time and a half over 40 hours.

Accepted Answer

The answer of From the following information, complete the chart...

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

Kim received $1,850 for working 40 hours. What was Kim's rate of pay per hour?

Accepted Answer

A) $46.25 
B) $44.00 
C) $45.00 
D) $40.00 
A) $46.25 
B) $44.00 
C) $45.00 
D) $40.00

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

Explain what is meant by the cumulative gross earnings.

Accepted Answer

Cumulative earnings represent

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

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.
-

Accepted Answer

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

Question 16

Kathy Addington earns $72,000 per year. What is her net pay for the month ended January 31, if FICA tax rates are: 6.2% for OASDI and 1.45% for Medicare; federal income tax is 20%; and union dues are $85 per month?

Accepted Answer

A) $4,100 
B) $4,256 
C) $4,326 
D) $4,293 
A) $4,100 
B) $4,256 
C) $4,326 
D) $4,293

Question 17

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 18

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 19

Generally, employers can take a credit against the FUTA tax for contributions paid into the state unemployment funds.

Accepted Answer

A) True 
 B)False

Question 20

Bob Hill's hourly rate is $25.00, and he worked 38 hours during the week. What is his gross pay for the week?

Accepted Answer

A) $950 
B) $780 
C) $1,000 
D) $975 
A) $950 
B) $780 
C) $1,000 
D) $975

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

Net pay is the same as:

The Federal Insurance Contributions Act is better known as:

What is required of an employer by the Federal Insurance Contributions Act?

To examine in detail the weekly payroll of all employees, one would look at the:

The employer's payroll taxes are deducted from the employee's paycheck.

Payroll taxes include all of the following except:

From the following information, complete the chart for gross earnings for the week. Assume an overtime rate of time and a half over 40 hours.

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

Kim received $1,850 for working 40 hours. What was Kim's rate of pay per hour?

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.

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

Explain what is meant by the cumulative gross earnings.

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

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. -

Kathy Addington earns $72,000 per year. What is her net pay for the month ended January 31, if FICA tax rates are: 6.2% for OASDI and 1.45% for Medicare; federal income tax is 20%; and union dues are $85 per month?

A calendar quarter consists of:

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

Generally, employers can take a credit against the FUTA tax for contributions paid into the state unemployment funds.

Bob Hill's hourly rate is $25.00, and he worked 38 hours during the week. What is his gross pay for the week?

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

Filters