Question 1

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 2

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 3

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 gross pay?

Accepted Answer

A) $1000.00 
B) $781.15 
C) $771.15 
D) $791.15 
A) $1000.00 
B) $781.15 
C) $771.15 
D) $791.15

Question 4

Gross pay is equal to take-home pay.

Accepted Answer

A) True 
 B)False

Question 5

When calculating the employee's payroll the clerk forgot about the wage base limits. What impact could this error cause on the employee's check?

Accepted Answer

A) FICA-OASDI could be overstated. 
B) FUTA could be overstated. 
C) SUTA could be overstated. 
D) All of these could be correct. 
A) FICA-OASDI could be overstated. 
B) FUTA could be overstated. 
C) SUTA could be overstated. 
D) All of these could be correct.

Question 6

To compute federal income tax to be withheld:

Accepted Answer

A) use the net earnings and number of allowances. 
B) use gross earnings, number of allowances, and marital status. 
C) use net earnings and Form W-4. 
D) None of these answers are correct. 
A) use the net earnings and number of allowances. 
B) use gross earnings, number of allowances, and marital status. 
C) use net earnings and Form W-4. 
D) None of these answers are correct.

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.
-

Accepted Answer

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

Question 8

Kristin's cumulative earnings before this pay period were $7,200 and gross pay for the week is $900. Assuming the wage base limit is $7,000, how much of this week's pay is subject to taxes for FUTA and SUTA?

Accepted Answer

A) $900 
B) $200 
C) $0 
D) $500 
A) $900 
B) $200 
C) $0 
D) $500

Question 9

Companies can choose different pay periods for hourly workers versus salary workers.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Gross pay is the amount that the employee takes home.

Accepted Answer

A) True 
 B)False

Question 12

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 13

The taxable earnings column of the payroll register records the tax due.

Accepted Answer

A) True 
 B)False

Question 14

List the purposes of Federal Insurance Contributions Act.

Accepted Answer

The Federal Insurance Contributions Act

Question 15

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 16

There are two parts to FICA:

Accepted Answer

A) old age benefits and workers' compensation. 
B) retirement and income tax withholdings. 
C) OASDI and Medicare. 
D) All of these answers are correct. 
A) old age benefits and workers' compensation. 
B) retirement and income tax withholdings. 
C) OASDI and Medicare. 
D) All of these answers are correct.

Question 17

The individual employee earnings record provides a summary of the following for a single employee, except:

Accepted Answer

A) earnings. 
B) withholding taxes. 
C) net pay. 
D) allowances. 
A) earnings. 
B) withholding taxes. 
C) net pay. 
D) allowances.

Question 18

The Fair Labor Standards Act must be followed if:

Accepted Answer

A) the company has more than 100 employees. 
B) the employees have received regular earnings. 
C) the company does business in more than one state. 
D) if all employees are categorized as salary. 
A) the company has more than 100 employees. 
B) the employees have received regular earnings. 
C) the company does business in more than one state. 
D) if all employees are categorized as salary.

Question 19

The College Credit Card Services has a significant increase in business each spring due to a large increase in new applicants from graduating college students. Subsequently, each spring 40 temporary workers are hired for a 12-week period, working 40 hours per week at $10 per hour and then they are laid off. College's permanent employment total is 350 workers. Because of these yearly layoffs, College's state unemployment merit tax rate is 9%. If the number of layoffs could be reduced, the merit tax rate could be reduced to 4.1%.
As the payroll specialist for College, you have been asked to evaluate the following and determine the pros/cons of each decision:
1. Should College stop hiring temporary employees and ask its full-time workers to work overtime to handle the extra load?
2. Should College get its temporary employees from a temporary employment agency and therefore not be subject to the extra taxes?

Accepted Answer

1. Use regular employees on overtime bas

Question 20

A work week is 150 hours in length.

Accepted Answer

A) True 
 B)False

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

The employee earnings record:

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

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 gross pay?

Gross pay is equal to take-home pay.

When calculating the employee's payroll the clerk forgot about the wage base limits. What impact could this error cause on the employee's check?

To compute federal income tax to be withheld:

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. -

Kristin's cumulative earnings before this pay period were $7,200 and gross pay for the week is $900. Assuming the wage base limit is $7,000, how much of this week's pay is subject to taxes for FUTA and SUTA?

Companies can choose different pay periods for hourly workers versus salary workers.

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. -

Gross pay is the amount that the employee takes home.

Employers pay the following payroll taxes, except:

The taxable earnings column of the payroll register records the tax due.

List the purposes of Federal Insurance Contributions Act.

A calendar year is:

There are two parts to FICA:

The individual employee earnings record provides a summary of the following for a single employee, except:

The Fair Labor Standards Act must be followed if:

A work week is 150 hours in length.

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