Question 1

The more allowances claimed on Form W-4:

Accepted Answer

A) The less money deducted for FIT 
B) The more money deducted for FIT 
C) No FIT ever deducted 
D) FUTA increase 
E) None of these 
A) The less money deducted for FIT 
B) The more money deducted for FIT 
C) No FIT ever deducted 
D) FUTA increase 
E) None of these

Question 2

FICA stands for federal withholding tax.

Accepted Answer

A) True 
 B)False

Question 3

An override can never help increase a manager's total pay.

Accepted Answer

A) True 
 B)False

Question 4

Bob Neff, owner of an automotive dealership, pays one of his salesmen, Mike, a $1,300 draw per week plus 6% on all commission sales. Mike sold seven cars over the four-week period, totaling $186,900 for the month. Mike's commission plus the draw is:

Accepted Answer

A) $6,014 
B) $6,041 
C) $16,414 
D) $5,200 
E) None of these 
A) $6,014 
B) $6,041 
C) $16,414 
D) $5,200 
E) None of these

Question 5

A draw is an advance that need not be repaid if the commission does not exceed the draw.

Accepted Answer

A) True 
 B)False

Question 6

A married person will pay in more Social Security and Medicare tax than a single person.

Accepted Answer

A) True 
 B)False

Question 7

The Labor Fair Standards Act:

Accepted Answer

A) Sets minimum wage standards 
B) Sets overtime regulations 
C) Is a federal act 
D) May exempt certain workers 
E) None of these 
A) Sets minimum wage standards 
B) Sets overtime regulations 
C) Is a federal act 
D) May exempt certain workers 
E) None of these

Question 8

The taxable earnings column of a payroll register shows the actual tax.

Accepted Answer

A) True 
 B)False

Question 9

Overtime is always calculated at time and a half the regular rate.

Accepted Answer

A) True 
 B)False

Question 10

FICA tax base:

Accepted Answer

A) Never changes 
B) Changes yearly 
C) Changes once every two years 
D) Is never more than $60,000 
E) None of these 
A) Never changes 
B) Changes yearly 
C) Changes once every two years 
D) Is never more than $60,000 
E) None of these

Question 11

A calendar year is July 1 to June 30.

Accepted Answer

A) True 
 B)False

Question 12

FUTA tax is computed by the wage-bracket table.

Accepted Answer

A) True 
 B)False

Question 13

Lee Wong is a sales clerk at Sears. She is paid $8.00 per hour plus a commission of 4% on all sales. Assuming Lee works 39 hours and has sales of $4,000, her gross pay is:

Accepted Answer

A) $312 
B) $321 
C) $472 
D) $427 
E) None of these 
A) $312 
B) $321 
C) $472 
D) $427 
E) None of these

Question 14

Social Security and Medicare tax:

Accepted Answer

A) Have different rates 
B) Are paid only by employees 
C) Are based on the number of dependents not claimed 
D) Are paid by only the employer 
E) None of these 
A) Have different rates 
B) Are paid only by employees 
C) Are based on the number of dependents not claimed 
D) Are paid by only the employer 
E) None of these

Question 15

Circular E from the Internal Revenue Service contains many tax tables.

Accepted Answer

A) True 
 B)False

Question 16

The Federal Insurance Contributions Act funds the federal income tax program.

Accepted Answer

A) True 
 B)False

Question 17

The higher the number claimed on form W-2, the less in taxes will be taken out of one's paycheck.

Accepted Answer

A) True 
 B)False

Question 18

Bill Burne's earnings are subject to deductions for Social Security, Medicare, and FIT. To date his cumulative earnings are $110,000. This week Bill earns $1,200. Bill, who is married, is paid weekly and claims three exemptions. Assume the Social Security rate is 6.2% on $110,100 and 1.45% for Medicare. His net pay for the week is (use percentage table in handbook to calculate FIT):

Accepted Answer

A) $528.43 
B) $1,069.39 
C) $1,690.93 
D) $1,609.93 
E) None of these 
A) $528.43 
B) $1,069.39 
C) $1,690.93 
D) $1,609.93 
E) None of these

Question 19

The percentage method can be used to determine the amount of FIT.

Accepted Answer

A) True 
 B)False

Question 20

John Flynn works at Stutz Toyota and is paid a(n) __________ against his earned commissions.

Accepted Answer

A) Bonus to one's salary 
B) Salary 
C) Draw 
D) Amount that is never paid back 
E) None of these 
A) Bonus to one's salary 
B) Salary 
C) Draw 
D) Amount that is never paid back 
E) None of these

Exam 9: Payroll

The more allowances claimed on Form W-4:

FICA stands for federal withholding tax.

An override can never help increase a manager's total pay.

Bob Neff, owner of an automotive dealership, pays one of his salesmen, Mike, a $1,300 draw per week plus 6% on all commission sales. Mike sold seven cars over the four-week period, totaling $186,900 for the month. Mike's commission plus the draw is:

A draw is an advance that need not be repaid if the commission does not exceed the draw.

A married person will pay in more Social Security and Medicare tax than a single person.

The Labor Fair Standards Act:

The taxable earnings column of a payroll register shows the actual tax.

Overtime is always calculated at time and a half the regular rate.

FICA tax base:

A calendar year is July 1 to June 30.

FUTA tax is computed by the wage-bracket table.

Lee Wong is a sales clerk at Sears. She is paid $8.00 per hour plus a commission of 4% on all sales. Assuming Lee works 39 hours and has sales of $4,000, her gross pay is:

Social Security and Medicare tax:

Circular E from the Internal Revenue Service contains many tax tables.

The Federal Insurance Contributions Act funds the federal income tax program.

The higher the number claimed on form W-2, the less in taxes will be taken out of one's paycheck.

The percentage method can be used to determine the amount of FIT.

John Flynn works at Stutz Toyota and is paid a(n) __________ against his earned commissions.

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