Question 1

The taxable earnings column of a payroll register records:

Accepted Answer

A) What wages will be taxed 
B) The actual tax 
C) The estimated tax 
D) All of these 
E) None of these 
A) What wages will be taxed 
B) The actual tax 
C) The estimated tax 
D) All of these 
E) None of these

Question 2

Lana Powell has cumulative earnings of $110,000 at the end of September. In the first week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is (assume Social Security rate of 6.2% on $110,100 and Medicare of 1.45%):

Accepted Answer

A) $29.00 
B) $35.20 
C) $53.20 
D) $92.00 
E) None of these 
A) $29.00 
B) $35.20 
C) $53.20 
D) $92.00 
E) None of these

Question 3

Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale:   What is Mindy's pay if she produced 192 boots for the week?

Accepted Answer

A) $602.30 
B) $702.90 
C) $1,152.00 
D) $620.30 
E) None of these 
A) $602.30 
B) $702.90 
C) $1,152.00 
D) $620.30 
E) None of these

Question 4

SUTA tax has no maximum amount that can be paid in a calendar year.

Accepted Answer

A) True 
 B)False

Question 5

Sandi works for Elizabeth Arden Cosmetics and earns $500 per week salary plus 4% commission on sales over $2,000. If Sandi sold $2,733 last week, what was her salary?

Accepted Answer

A) $1,046.66 
B) $2,743.00 
C) $609.32 
D) $906.32 
E) None of these 
A) $1,046.66 
B) $2,743.00 
C) $609.32 
D) $906.32 
E) None of these

Question 6

Net pay - deductions = gross pay.

Accepted Answer

A) True 
 B)False

Question 7

The Fair Labor Standards Act entitles employees to time and a half over 36 1/2 hours.

Accepted Answer

A) True 
 B)False

Question 8

Jill Hartman earns $750 per week plus 3% of sales in excess of $6,500. If Jill sells $25,000 in the first week, her earnings are:

Accepted Answer

A) $945 
B) $1,305 
C) $1,500 
D) $1,503 
E) None of these 
A) $945 
B) $1,305 
C) $1,500 
D) $1,503 
E) None of these

Question 9

Gross pay = hours worked × rate per hour.

Accepted Answer

A) True 
 B)False

Question 10

Being paid biweekly is the same as being paid semimonthly.

Accepted Answer

A) True 
 B)False

Question 11

The FICA tax now requires separate reporting for Social Security and Medicare.

Accepted Answer

A) True 
 B)False

Question 12

Differential pay schedule is based on:

Accepted Answer

A) FICA 
B) Different levels of performance 
C) FUTA 
D) Gross pay 
E) None of these 
A) FICA 
B) Different levels of performance 
C) FUTA 
D) Gross pay 
E) None of these

Question 13

To date, Jay Ward has cumulative earnings of $107,600. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $110,100 for Social Security and 1.45% for Medicare):

Accepted Answer

A) $186.00 
B) $155.00 
C) $57.66 
D) $180.00 
E) None of these 
A) $186.00 
B) $155.00 
C) $57.66 
D) $180.00 
E) None of these

Question 14

Payroll registers cannot record cumulative earnings.

Accepted Answer

A) True 
 B)False

Question 15

Differential pay means that there is one fixed rate per unit that is produced.

Accepted Answer

A) True 
 B)False

Question 16

The percentage method aids in calculating:

Accepted Answer

A) SUTA 
B) FUTA 
C) FICA 
D) FIT 
E) None of these 
A) SUTA 
B) FUTA 
C) FICA 
D) FIT 
E) None of these

Question 17

A quarter is 13 weeks.

Accepted Answer

A) True 
 B)False

Question 18

The W-4 is used strictly to calculate Social Security and Medicare taxes.

Accepted Answer

A) True 
 B)False

Question 19

A variable commission scale means that for different levels of net sales there are different commission rates.

Accepted Answer

A) True 
 B)False

Question 20

Janice Tax, an accountant for Flee Corp., earned $102,700 from January to June. In July she earned $8,000. Assuming a FICA tax rate of 6.2% for Social Security on $110,100 and 1.45% for Medicare, (A) how much of this month's earnings are taxed for Social Security and Medicare? and (B) what is the amount of FICA tax for Social Security and Medicare?

Accepted Answer

The answer of Janice Tax, an accountant for Flee Corp.,...

Exam 9: Payroll

The taxable earnings column of a payroll register records:

Lana Powell has cumulative earnings of $110,000 at the end of September. In the first week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is (assume Social Security rate of 6.2% on $110,100 and Medicare of 1.45%):

Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale: What is Mindy's pay if she produced 192 boots for the week?

SUTA tax has no maximum amount that can be paid in a calendar year.

Sandi works for Elizabeth Arden Cosmetics and earns $500 per week salary plus 4% commission on sales over $2,000. If Sandi sold $2,733 last week, what was her salary?

Net pay - deductions = gross pay.

The Fair Labor Standards Act entitles employees to time and a half over 36 1/2 hours.

Jill Hartman earns $750 per week plus 3% of sales in excess of $6,500. If Jill sells $25,000 in the first week, her earnings are:

Gross pay = hours worked × rate per hour.

Being paid biweekly is the same as being paid semimonthly.

The FICA tax now requires separate reporting for Social Security and Medicare.

Differential pay schedule is based on:

To date, Jay Ward has cumulative earnings of $107,600. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $110,100 for Social Security and 1.45% for Medicare):

Payroll registers cannot record cumulative earnings.

Differential pay means that there is one fixed rate per unit that is produced.

The percentage method aids in calculating:

A quarter is 13 weeks.

The W-4 is used strictly to calculate Social Security and Medicare taxes.

A variable commission scale means that for different levels of net sales there are different commission rates.

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