Exam 5: Employee Net Pay and Pay Methods

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 $127,200. Do not round interim calculations, only round final answer to two decimal points.)

Post-Tax Deductions are amounts ________.

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 interim calculations, only round final answer to two decimal points.)

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

Jeannie is an adjunct faculty at a local college, where she earned $680.00 during the most recent semimonthly pay period. Her prior year-to-date pay is $18,540. She is single and has one withholding allowance. What is her Social Security tax for the pay period?

Social Security tax has a wage base, which is the minimum amount an employee must earn before they will have the Social Security tax deduction.

Which of the following is the correct sequence for computing net pay?

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

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 interim calculations, only round final answer to two decimal points.)

Best practices for paying employees by check include which of the following? (Select all that apply.)

Paolo is a part-time security guard for a local facility. He earned $298.50 during the most recent weekly pay period and has earned $5,296.00 year-to-date. He is married with four withholding allowances. What is his Medicare tax liability for the pay period?

Nickels Company is located in West Virginia has employees who live in Ohio, Florida, Tennessee, and West Virginia. For which state(s) should the company collect and remit state income tax? (Select all that apply.)

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

Tierney is a full-time nonexempt salaried employee who earns $990 per biweekly pay period. She is single with 1 withholding allowance and both lives and works in Maryland. Assuming that she had no overtime, what is the total of her Federal and state taxes for a pay period? (Use the wage-bracket tables. Maryland state income rate is 2.0%. Round final answer to 2 decimal places.)

Sammy contributes 4% of her salary to a 401(k) plan, $50 per pay period to a charitable contribution, $140 per pay period to union dues, and $50 per pay period to a section 125 qualified insurance plan offered by her employer. Which contributions must be taken on a post-tax basis? (Select all that apply.)

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

Warren is a married employee with six withholding allowances. During the most recent biweekly pay period, he earned $9,450.00. Using the percentage method, compute Warren's federal income tax. (Do not round interim calculations, only round final answer to two decimal points.) Table 5. Percentage Method-2017 Amount for one Withholding Allowance

Amanda is a full-time exempt employee in Sparks, Nevada, who earns $84,000 annually. She is married with 1 deduction and is paid biweekly. She contributes $150.00 per pay period to her 401(k) and has pre-tax health insurance and AFLAC deductions of $50.00 and $75.00, respectively. Amanda contributes $25.00 per pay period to the United Way. What is her net pay? (Use the percentage method. Do not round intermediate calculations. Round final answers to 2 decimal places.) Table 5. Percentage Method-2017 Amount for one Withholding Allowance

How are income taxes and FICA taxes applied to grossed-up pay? (Select all that apply.)

Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $45,000 and is paid semimonthly. He is married with 3 withholding allowances. His state income tax per pay period is $57.38, and Clark County income tax is $33.75 per pay period. What is the total of FICA, Federal, state, and local deductions per pay period, assuming no Pre-Tax Deductions?(Use the wage-bracket table to determine Federal taxes. Do not round intermediate calculations, only round final answer to two decimal points.)