Question 1

Which of the following federal withholding allowance scenarios will have the highest income tax?

Accepted Answer

A) Single,1 allowance 
B) Married,3 allowances 
C) Single,5 allowances 
D) Married,0 allowances 
A) Single,1 allowance 
B) Married,3 allowances 
C) Single,5 allowances 
D) Married,0 allowances A

Question 2

When a payroll check is subject to escheatment,who handles the distribution of the money?

Accepted Answer

A) The employee. 
B) The company. 
C) The IRS. 
D) It depends on state laws. 
A) The employee. 
B) The company. 
C) The IRS. 
D) It depends on state laws. D

Question 3

Which of the following payment methods is growing in popularity among employees?

Accepted Answer

A) Cash 
B) Check 
C) Direct Deposit 
D) Paycard 
A) Cash 
B) Check 
C) Direct Deposit 
D) Paycard D

Question 4

The percentage of the Medicare tax withholding ________.

Accepted Answer

A) is the same for every employee,regardless of income 
B) is subject to change based on the firm's profitability 
C) changes every year in response to industry needs 
D) remains the same for all employees who earn less than $200,000 
A) is the same for every employee,regardless of income 
B) is subject to change based on the firm's profitability 
C) changes every year in response to industry needs 
D) remains the same for all employees who earn less than $200,000

Question 5

Danny is a full-time exempt employee in Alabama,where the state income tax rate is 5%.He earns $78,650 annually and is paid semimonthly.He is married with four withholding allowances.His health insurance is $100.00 per pay period and is deducted on a pre-tax basis.Danny contributes 5% of his pay to his 401(k).Assuming that he has no other deductions,what is Danny's net pay for the period? (Use the percentage method for the federal income tax and the wage-bracket table for the state income tax.Do not round intermediate calculations.Round your final answer to 2 decimal places. )
Table 5.Percentage Method-2018 Amount for one Withholding Allowance

Accepted Answer

A) $2,245.53 
B) $2,403.95 
C) $2,414.53 
D) $2,178.90 
A) $2,245.53 
B) $2,403.95 
C) $2,414.53 
D) $2,178.90

Question 6

Jesse is a part-time nonexempt employee in Austin,Texas,who earns $12.50 per hour.During the last biweekly pay period he worked 35 hours.He is married with zero withholding allowances,which means his federal income tax deduction is $10.00,and has additional federal tax withholding of $30 per pay period.What is his net pay? (Do not round intermediate calculations.Round your final answer to 2 decimal places. )

Accepted Answer

A) $354.28 
B) $374.03 
C) $364.03 
D) $378.03 
A) $354.28 
B) $374.03 
C) $364.03 
D) $378.03

Question 7

The use of paycards as a means of transmitting employee pay began in the 1990s with over-the-road drivers out of a need to transmit funds reliably on payday.

Accepted Answer

A) True 
 B)False

Question 8

Post-Tax Deductions are amounts ________.

Accepted Answer

A) That are voluntarily chosen by the employee 
B) That the employer chooses to withhold after assessing the employee's tax liability 
C) That Include both mandatory and voluntary deductions 
D) That are only mandatory deductions like garnishments and union dues 
A) That are voluntarily chosen by the employee 
B) That the employer chooses to withhold after assessing the employee's tax liability 
C) That Include both mandatory and voluntary deductions 
D) That are only mandatory deductions like garnishments and union dues

Question 9

Trish earned $1,734.90 during the most recent semimonthly pay period.She is married and has 3 withholding allowances and has no pre-tax deductions.Based on the following table,how much should be withheld from her gross pay for Federal income tax?

Accepted Answer

A) $74.00 
B) $93.00 
C) $76.00 
D) $95.00 
A) $74.00 
B) $93.00 
C) $76.00 
D) $95.00

Question 10

Melody is a full-time employee in Sioux City,South Dakota,who earns $3,600 per month and is paid semimonthly.She is married with 1 withholding allowance (use the wage-bracket tables).She has a qualified health insurance deduction of $50 per pay period and contributes 3% to her 401(k),both of which are pre-tax deductions.What is her net pay? (Round your intermediate calculations and final answer to 2 decimal places. )

Accepted Answer

A) $1,696.00 
B) $1,524.27 
C) $1,453.12 
D) $1,394.87 
A) $1,696.00 
B) $1,524.27 
C) $1,453.12 
D) $1,394.87

Question 11

Julian is a part-time nonexempt employee in Nashville,Tennessee,who earns $21.50 per hour.During the last biweekly pay period he worked 45 hours,5 of which are considered overtime.He is single with one withholding allowance (use the wage-bracket table).What is his net pay? (Do not round intermediate calculations.Round your final answer to 2 decimal places. )

Accepted Answer

A) $818.40 
B) $797.18 
C) $825.99 
D) $863.12 
A) $818.40 
B) $797.18 
C) $825.99 
D) $863.12

Question 12

Garnishments may include deductions from employee wages on a post-tax basis for items such as: (You may select more than one answer. )

Accepted Answer

A) Charitable contributions. 
B) Union Dues. 
C) Child Support payments. 
D) Consumer Credit liens. 
A) Charitable contributions. 
B) Union Dues. 
C) Child Support payments. 
D) Consumer Credit liens.

Question 13

Which of the following statements is/are true about Social Security tax deductions from gross pay? (You may select more than one answer. )

Accepted Answer

A) Section 125 deductions are not subject to Social Security tax. 
B) The tax rate is 6.0%. 
C) The tax is computed on all earnings. 
D) The wage base is $128,400. 
A) Section 125 deductions are not subject to Social Security tax. 
B) The tax rate is 6.0%. 
C) The tax is computed on all earnings. 
D) The wage base is $128,400.

Question 14

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 15

Steve is a full-time exempt employee at a local electricity co-operative.He earns an annual salary of $43,325 and is paid biweekly.What is his Social Security tax deduction for each pay period? (Do not round intermediate calculations.Round your final answer to 2 decimal places. )

Accepted Answer

A) $123.95 
B) $103.31 
C) $98.67 
D) $106.34 
A) $123.95 
B) $103.31 
C) $98.67 
D) $106.34

Question 16

Which of the following statements is/are true about Medicare tax? (You may select more than one answer. )

Accepted Answer

A) All employee earnings less pre-tax deductions are subject to Medicare tax. 
B) Employers match all Medicare taxes withheld. 
C) The Medicare tax rate is 1.45%. 
D) Additional Medicare tax is withheld for employees who earn more than $150,000 annually. 
A) All employee earnings less pre-tax deductions are subject to Medicare tax. 
B) Employers match all Medicare taxes withheld. 
C) The Medicare tax rate is 1.45%. 
D) Additional Medicare tax is withheld for employees who earn more than $150,000 annually.

Question 17

Which body issued Regulation E to protect consumers from loss of deposited funds?

Accepted Answer

A) Department of Homeland Security 
B) Internal Revenue Service 
C) American Banking Association 
D) Federal Deposit Insurance Corporation 
A) Department of Homeland Security 
B) Internal Revenue Service 
C) American Banking Association 
D) Federal Deposit Insurance Corporation

Question 18

Best practices for paying employees by check include which of the following? (You may select more than one answer. )

Accepted Answer

A) Maintenance of a separate checking account for payroll purposes. 
B) Keeping a single check register for the firm's checking accounts. 
C) Logging the number,amount,and purpose of each check used. 
D) Establishing an unclaimed property account for uncashed checks. 
A) Maintenance of a separate checking account for payroll purposes. 
B) Keeping a single check register for the firm's checking accounts. 
C) Logging the number,amount,and purpose of each check used. 
D) Establishing an unclaimed property account for uncashed checks.

Question 19

The regular Medicare tax deduction is 1.45% for employee and employer and must be paid by all employees.

Accepted Answer

A) True 
 B)False

Question 20

Wyatt is a full-time exempt music engineer who earns $130,000 annually and is paid semimonthly.As of December 15,his year-to-date gross pay was $124,583.33.How much will be withheld for FICA taxes for the December 31 pay date? (Social Security maximum wage is $128,400.Do not round intermediate calculations.Round your final answer to 2 decimal places. )

Accepted Answer

A) $335.83 
B) $414.38 
C) $352.88 
D) $315.18 
A) $335.83 
B) $414.38 
C) $352.88 
D) $315.18

Which of the following federal withholding allowance scenarios will have the highest income tax?

When a payroll check is subject to escheatment,who handles the distribution of the money?

Which of the following payment methods is growing in popularity among employees?

The percentage of the Medicare tax withholding ________.

The use of paycards as a means of transmitting employee pay began in the 1990s with over-the-road drivers out of a need to transmit funds reliably on payday.

Post-Tax Deductions are amounts ________.

Trish earned $1,734.90 during the most recent semimonthly pay period.She is married and has 3 withholding allowances and has no pre-tax deductions.Based on the following table,how much should be withheld from her gross pay for Federal income tax?

Garnishments may include deductions from employee wages on a post-tax basis for items such as: (You may select more than one answer. )

Which of the following statements is/are true about Social Security tax deductions from gross pay? (You may select more than one answer. )

The percentage method of determining an employee's Federal income tax deductions ________.

Steve is a full-time exempt employee at a local electricity co-operative.He earns an annual salary of $43,325 and is paid biweekly.What is his Social Security tax deduction for each pay period? (Do not round intermediate calculations.Round your final answer to 2 decimal places. )

Which of the following statements is/are true about Medicare tax? (You may select more than one answer. )

Which body issued Regulation E to protect consumers from loss of deposited funds?

Best practices for paying employees by check include which of the following? (You may select more than one answer. )

The regular Medicare tax deduction is 1.45% for employee and employer and must be paid by all employees.

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employer Payroll Taxes and Labor Planning

The Payroll Register, employees Earnings Records, and Accounting System Entries

Filters

Exam 5: Employee Net Pay and Pay Methods

Which of the following federal withholding allowance scenarios will have the highest income tax?

When a payroll check is subject to escheatment,who handles the distribution of the money?

Which of the following payment methods is growing in popularity among employees?

The percentage of the Medicare tax withholding ________.

The use of paycards as a means of transmitting employee pay began in the 1990s with over-the-road drivers out of a need to transmit funds reliably on payday.

Post-Tax Deductions are amounts ________.

Trish earned $1,734.90 during the most recent semimonthly pay period.She is married and has 3 withholding allowances and has no pre-tax deductions.Based on the following table,how much should be withheld from her gross pay for Federal income tax?

Garnishments may include deductions from employee wages on a post-tax basis for items such as: (You may select more than one answer. )

Which of the following statements is/are true about Social Security tax deductions from gross pay? (You may select more than one answer. )

The percentage method of determining an employee's Federal income tax deductions ________.

Steve is a full-time exempt employee at a local electricity co-operative.He earns an annual salary of $43,325 and is paid biweekly.What is his Social Security tax deduction for each pay period? (Do not round intermediate calculations.Round your final answer to 2 decimal places. )

Which of the following statements is/are true about Medicare tax? (You may select more than one answer. )

Which body issued Regulation E to protect consumers from loss of deposited funds?

Best practices for paying employees by check include which of the following? (You may select more than one answer. )

The regular Medicare tax deduction is 1.45% for employee and employer and must be paid by all employees.

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employer Payroll Taxes and Labor Planning

The Payroll Register, employees Earnings Records, and Accounting System Entries

Filters