Question 1

Ocean's Auction House's payroll for April includes the following data:  What is the net pay?

Accepted Answer

A) $1,998.40 
B) $1,942.40 
C) $3,000.00 
D) $2,798.40

Question 2

Why would a business decide to use an external company to prepare their payroll checks and related reports?

Accepted Answer

The answer of Why would a business decide to use...

Question 3

Regular earnings are equal to total earnings less deductions.

Accepted Answer

A) True 
 B)False

Question 4

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 net pay?

Accepted Answer

A) $900.00 
B) $781.15 
C) $863.50 
D) $791.15

Question 5

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 6

Gross Earnings are the same as:

Accepted Answer

A) regular earnings only. 
B) regular earnings + overtime earnings. 
C) net earnings. 
D) net earnings + overtime earnings.

Question 7

Ocean's Auction House's payroll for April includes the following data:  What is the employer's portion of the tax?

Accepted Answer

A) $1,072.10 
B) $56.00 
C) $272.10 
D) $800.00

Question 8

Clare's earnings during the month of February were $6,200. Her earnings for the year prior to February were $5,600. Clare's employer is subject to federal unemployment taxes of 0.8% and state unemployment taxes of 5.4% on the first $7,000. The employer's unemployment payroll tax expense for Clare in the month of February is:

Accepted Answer

A) $4.96. 
B) $49.60. 
C) $496.00. 
D) $0.49.

Question 9

Net pay is equal to gross pay less deductions.

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

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 12

Compute the net pay for each employee. The FICA tax rate is: OASDI 6.2% on a limit of $106,800; 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 13

On January 15, Robert Love earned $4,000 and has the following deductions: FICA-OASDI 6.2%, FICA-Medicare 1.45%; federal income tax of $200; and state income tax $40. What is his net pay?

Accepted Answer

A) $3,400 
B) $3,454 
C) $4,454 
D) $$4,000

Question 14

Ocean's Auction House's payroll for April includes the following data:  What is the employee's portion of the tax?

Accepted Answer

A) $1,057.60 
B) $1,001.60 
C) $257.60 
D) $800.00

Question 15

The use of a payroll register to record a company's payroll is optional.

Accepted Answer

A) True 
 B)False

Question 16

Compute net earnings on March 3, when gross (taxable)pay equals $750. FICA-OASDI tax rates are 6.2%, FICA-Medicare rate is 1.45%, federal income tax $71.00, and state income tax $5.00.

Accepted Answer

A) $615.00 
B) $610.00 
C) $616.62 
D) $672.12

Question 17

FUTA and SUTA are paid for exclusively by the employee.

Accepted Answer

A) True 
 B)False

Question 18

Brian Temple's cumulative earnings are $73,000, and his gross pay for the week is $5,300. If the FICA rates are: OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week?

Accepted Answer

A) $0; $76.85 
B) $328.60; $0 
C) $328.60; $76.85 
D) $3,286; $768.50

Question 19

Tracey Thrasher earned $800 for the week. If her cumulative earnings are $30,000 prior to this pay period, how much FICA-OASDI must her employer withhold from her earnings? FICA tax rates are OASDI 6.2% on a limit of $106,800.

Accepted Answer

A) $496.00 
B) $0 
C) $49.60 
D) None of the above are correct.

Question 20

Compute the net pay for each employee listed below. Assume the following rates: FICA-OASDI 6.2% on a limit of $106,800; Medicare is 1.45%; federal income tax is 20%; state income tax is 5%; and union dues are $10.

Accepted Answer

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

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

Ocean's Auction House's payroll for April includes the following data: What is the net pay?

Why would a business decide to use an external company to prepare their payroll checks and related reports?

Regular earnings are equal to total earnings less deductions.

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 net pay?

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 Earnings are the same as:

Ocean's Auction House's payroll for April includes the following data: What is the employer's portion of the tax?

Net pay is equal to gross pay less deductions.

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. -

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. -

Compute the net pay for each employee. The FICA tax rate is: OASDI 6.2% on a limit of $106,800; Medicare is 1.45%; federal income tax is 15%; state income tax is 5%; and medical insurance is $100 per employee.

On January 15, Robert Love earned $4,000 and has the following deductions: FICA-OASDI 6.2%, FICA-Medicare 1.45%; federal income tax of $200; and state income tax $40. What is his net pay?

Ocean's Auction House's payroll for April includes the following data: What is the employee's portion of the tax?

The use of a payroll register to record a company's payroll is optional.

Compute net earnings on March 3, when gross (taxable) pay equals $750. FICA-OASDI tax rates are 6.2%, FICA-Medicare rate is 1.45%, federal income tax $71.00, and state income tax $5.00.

FUTA and SUTA are paid for exclusively by the employee.

Brian Temple's cumulative earnings are $73,000, and his gross pay for the week is $5,300. If the FICA rates are: OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week?

Tracey Thrasher earned $800 for the week. If her cumulative earnings are $30,000 prior to this pay period, how much FICA-OASDI must her employer withhold from her earnings? FICA tax rates are OASDI 6.2% on a limit of $106,800.

Compute the net pay for each employee listed below. Assume the following rates: FICA-OASDI 6.2% on a limit of $106,800; Medicare is 1.45%; federal income tax is 20%; state income tax is 5%; and union dues are $10.