Question 1

On June 15, Bob Love earned $3,000 and has the following deductions: FICA-OASDI 6.2%, FICA-Medicare 1.45%; federal income tax of $300; and state income tax $40. What is his net pay? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole dollar.)

Accepted Answer

A)  $2,471 
B)  $2,431 
C)  $2,731 
D)  $2,771

Question 2

An employee earns $28 per hour.
She worked 50 hours the third week of January (assume time and a half for overtime)
Calculate the net pay.
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

The answer of An employee earns $28 per hour.
She worked...

Question 3

Workers' compensation insurance is deducted from employees' checks.

Accepted Answer

A) True 
 B)False

Question 4

Most employers are levied a payroll tax for:

Accepted Answer

A)  state and federal income taxes and FICA. 
B)  only FICA taxes. 
C)  FICA taxes, federal and state unemployment taxes. 
D)  only state and federal unemployment taxes.

Question 5

As the Prepaid Workers' Compensation is recognized, the amount will transfer to:

Accepted Answer

A)  Workers' Compensation Insurance Payable. 
B)  Workers' Compensation Insurance Expense. 
C)  Wages and Salaries Expense. 
D)  Payroll Tax Expense.

Question 6

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.

Question 7

If the employee has $700 withheld from their check for federal income tax, what is the amount that the employer would need to pay for their portion of the federal income tax?

Accepted Answer

A)  $700 
B)  $100 
C)  $0 
D)  $350

Question 8

Compute the net pay for each employee. The FICA tax rate is: OASDI 6.2% on a limit of $128,400; Medicare is 1.45%; federal income tax is 15%; state income tax is 5%; and medical insurance is $100 per employee.

Accepted Answer

The answer of Compute the net pay for each employee....

Question 9

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 10

Both employees and employers pay which of the following taxes?

Accepted Answer

A)  FICA taxes (OASDI and Medicare) 
B)  FUTA tax 
C)  Federal income tax 
D)  Workers' Compensation

Question 11

An employee has gross earnings of $1,800 with withholdings of 6.2% FICA-OASDI, 1.45% FICA-Medicare, $50 for federal income tax and $30 for state income tax. How much is the net pay? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest whole dollar.)

Accepted Answer

A)  $1,612 
B)  $1,632 
C)  $1,582 
D)  $1,662

Question 12

Given the following payroll items you are to identify whether they are the responsibility 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 13

To compute federal income tax to be withheld:

Accepted Answer

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

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

There are two parts to FICA:

Accepted Answer

A)  old age benefits and defined pension. 
B)  retirement and income tax withholdings. 
C)  OASDI and Medicare. 
D)  defined pension and Medicare.

Question 16

A W-4 form:

Accepted Answer

A)  shows total gross wages earned for the year. 
B)  determines the amount of FICA-Medicare to be withheld. 
C)  provides the number of allowances an employee has claimed. 
D)  shows total net wages earned for the year.

Question 17

Compute employee FICA taxes for the year on earnings of $114,000 at 6.2% on a limit of $128,400 for OASDI and 1.45% for Medicare. (Round your answer to the nearest whole dollar.)

Accepted Answer

A)  $7,068 
B)  $8,721 
C)  $1,653 
D)  $87,210

Question 18

Net pay is equal to gross pay less the amount withheld for federal income tax.

Accepted Answer

A) True 
 B)False

Question 19

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)  Both A and B are correct.

Question 20

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 answer of The employees collectively earn a gross wage...

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

On June 15, Bob Love earned $3,000 and has the following deductions: FICA-OASDI 6.2%, FICA-Medicare 1.45%; federal income tax of $300; and state income tax $40. What is his net pay? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole dollar.)

Workers' compensation insurance is deducted from employees' checks.

Most employers are levied a payroll tax for:

As the Prepaid Workers' Compensation is recognized, the amount will transfer to:

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

If the employee has $700 withheld from their check for federal income tax, what is the amount that the employer would need to pay for their portion of the federal income tax?

Compute the net pay for each employee. The FICA tax rate is: OASDI 6.2% on a limit of $128,400; Medicare is 1.45%; federal income tax is 15%; state income tax is 5%; and medical insurance is $100 per employee.

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

Both employees and employers pay which of the following taxes?

An employee has gross earnings of $1,800 with withholdings of 6.2% FICA-OASDI, 1.45% FICA-Medicare, $50 for federal income tax and $30 for state income tax. How much is the net pay? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest whole dollar.)

Given the following payroll items you are to identify whether they are the responsibility of the employer and/or the employee by placing an X in the appropriate column. -

To compute federal income tax to be withheld:

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

There are two parts to FICA:

A W-4 form:

Compute employee FICA taxes for the year on earnings of $114,000 at 6.2% on a limit of $128,400 for OASDI and 1.45% for Medicare. (Round your answer to the nearest whole dollar.)

Net pay is equal to gross pay less the amount withheld for federal income tax.

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

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.