Question 1

Why do employers use checks as an employment payment method?

Accepted Answer

A) Paying employees by check allows the employer flexibility with its bank accounts. 
B) Paying employees by check increases the complexity of the payroll process. 
C) Paying employees by check requires the employer to keep currency on the premises. 
D) Paying employees by check offers a level of security of employee payments. 
A) Paying employees by check allows the employer flexibility with its bank accounts. 
B) Paying employees by check increases the complexity of the payroll process. 
C) Paying employees by check requires the employer to keep currency on the premises. 
D) Paying employees by check offers a level of security of employee payments.

Question 2

From the employer's perspective,which of the following is a challenge of paying employees by direct deposit?

Accepted Answer

A) Reduction in payroll processing costs. 
B) Secure processing of employee compensation. 
C) Vulnerability of data to computer attacks. 
D) Employee self-maintenance of personnel records. 
A) Reduction in payroll processing costs. 
B) Secure processing of employee compensation. 
C) Vulnerability of data to computer attacks. 
D) Employee self-maintenance of personnel records.

Question 3

Natalia is a full-time exempt employee who earns $215,000 annually,paid monthly.Her year-to-date pay as of November 30 is $197,083.33.How much will be withheld from Natalia 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) $292.04 
B) $394.79 
C) $1,370.63 
D) $421.04 
A) $292.04 
B) $394.79 
C) $1,370.63 
D) $421.04

Question 4

Olga earned $1,558.00 during the most recent weekly pay period.She is single with 2 withholding allowances and no pre-tax deductions.Using the percentage method,compute Olga's federal income tax for the period.(Do not round intermediate calculations.Round final answer to 2 decimal places. )
Table 5.Percentage Method-2018 Amount for one Withholding Allowance

Accepted Answer

A) $217.93 
B) $239.25 
C) $213.97 
D) $214.75 
A) $217.93 
B) $239.25 
C) $213.97 
D) $214.75

Question 5

Adam is a part-time employee who earned $495.00 during the most recent pay period.He is married with two withholding allowances.Prior to this pay period,his year-to-date pay is $6,492.39.How much should be withheld from Adam's gross pay for Social Security tax?

Accepted Answer

A) $40.02 
B) $30.69 
C) $37.92 
D) $28.46 
A) $40.02 
B) $30.69 
C) $37.92 
D) $28.46

Question 6

Maile is a full-time exempt employee in Boca Raton,Florida,who earns $1,370.15 per biweekly payday.She is married with seven withholding allowances,so her federal income tax is $0.She contributes 4% of her gross pay to her 401(k)and has her health insurance premium of $50 deducted on a pre-tax basis.She has $10 deducted per pay period for a Salvation Army contribution and has union dues of $40 per pay period.What is her net pay? (Do not round intermediate calculations.Round your final answer to 2 decimal places. )

Accepted Answer

A) $1,160.53 
B) $1,114.35 
C) $1,124.23 
D) $1,137.93 
A) $1,160.53 
B) $1,114.35 
C) $1,124.23 
D) $1,137.93

Question 7

Andie earned $680.20 during the most recent weekly pay period.She is single with 3 withholding allowances and needs to decide between contributing 2.5% and $25 to her 401(k)plan.If she chooses the method that results in the lowest taxable income,how much will be withheld for Federal income tax (based on the following table)?

Accepted Answer

A) $40.00 
B) $48.00 
C) $38.00 
D) $39.00 
A) $40.00 
B) $48.00 
C) $38.00 
D) $39.00

Question 8

Federal income tax,Medicare tax,and Social Security tax amounts withheld from employee pay are computed based on gross pay,less pre-tax deductions,and deducted to arrive at net pay.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true about cash as a method of paying employees?

Accepted Answer

A) Cash is the most secure payment method. 
B) Cash is the most widely used payment method. 
C) Cash is readily transferable and highly liquid. 
D) Cash is the most convenient pay method for employers. 
A) Cash is the most secure payment method. 
B) Cash is the most widely used payment method. 
C) Cash is readily transferable and highly liquid. 
D) Cash is the most convenient pay method for employers.

Question 10

Vivienne is a full-time exempt employee in DeKalb County,Indiana,and is paid biweekly.She earns $39,000 annually,and is married with 2 withholding allowances.Her state income tax deduction is $44.46,and the DeKalb County income tax deduction is $19.62.What is the total amount of her FICA,federal,state,and local taxes per pay period,assuming no Pre-Tax Deductions? (Use the wage-bracket table to determine the federal tax deduction.Do not round intermediate calculations.Round your final answer to 2 decimal places. )

Accepted Answer

A) $239.25 
B) $227.12 
C) $265.47 
D) $251.83 
A) $239.25 
B) $227.12 
C) $265.47 
D) $251.83

Why do employers use checks as an employment payment method?

From the employer's perspective,which of the following is a challenge of paying employees by direct deposit?

Adam is a part-time employee who earned $495.00 during the most recent pay period.He is married with two withholding allowances.Prior to this pay period,his year-to-date pay is $6,492.39.How much should be withheld from Adam's gross pay for Social Security tax?

Federal income tax,Medicare tax,and Social Security tax amounts withheld from employee pay are computed based on gross pay,less pre-tax deductions,and deducted to arrive at net pay.

Which of the following is true about cash as a method of paying 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

Why do employers use checks as an employment payment method?

From the employer's perspective,which of the following is a challenge of paying employees by direct deposit?

Adam is a part-time employee who earned $495.00 during the most recent pay period.He is married with two withholding allowances.Prior to this pay period,his year-to-date pay is $6,492.39.How much should be withheld from Adam's gross pay for Social Security tax?

Federal income tax,Medicare tax,and Social Security tax amounts withheld from employee pay are computed based on gross pay,less pre-tax deductions,and deducted to arrive at net pay.

Which of the following is true about cash as a method of paying 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