Question 1

Gross pay = hours worked × rate per hour.

Accepted Answer

A) True 
 B)False

Question 2

Being paid biweekly is the same as being paid semimonthly.

Accepted Answer

A) True 
 B)False

Question 3

David is paid on a graduated commission scale at Nooter Company. He receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:

Accepted Answer

A)  $8,200 
B)  $6,200 
C)  $4,240 
D)  $4,420 
E)  None of these 
A)  $8,200 
B)  $6,200 
C)  $4,240 
D)  $4,420 
E)  None of these

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 $118,500 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)  $1,005.30 
C)  $1,690.93 
D)  $1,609.93 
E)  None of these 
A)  $528.43 
B)  $1,005.30 
C)  $1,690.93 
D)  $1,609.93 
E)  None of these

Question 7

Ron Swift earned $1,500 last week. He is married, is paid biweekly, and claims two exemptions. Using the percentage method (use tables in the handbook), his income tax is:

Accepted Answer

A)  $109.69 
B)  $116.40 
C)  $93.76 
D)  $140.88 
E)  None of these 
A)  $109.69 
B)  $116.40 
C)  $93.76 
D)  $140.88 
E)  None of these

Question 8

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 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

FICA stands for federal withholding tax.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

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 17

Being paid biweekly means the salary is paid twice a month.

Accepted Answer

A) True 
 B)False

Question 18

The number of dependents one claims does not affect the amount of Social Security and Medicare tax paid.

Accepted Answer

A) True 
 B)False

Question 19

FUTA tax is paid:

Accepted Answer

A)  By an employee 
B)  By the employer 
C)  By both the employee and the employer 
D)  Only weekly 
E)  None of these 
A)  By an employee 
B)  By the employer 
C)  By both the employee and the employer 
D)  Only weekly 
E)  None of these

Question 20

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

Accepted Answer

A) True 
 B)False

Gross pay = hours worked × rate per hour.

Being paid biweekly is the same as being paid semimonthly.

David is paid on a graduated commission scale at Nooter Company. He receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:

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

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:

Ron Swift earned $1,500 last week. He is married, is paid biweekly, and claims two exemptions. Using the percentage method (use tables in the handbook), his income tax is:

Social Security and Medicare tax:

The percentage method aids in calculating:

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

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

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

FICA stands for federal withholding tax.

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

The taxable earnings column of a payroll register records:

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

Being paid biweekly means the salary is paid twice a month.

The number of dependents one claims does not affect the amount of Social Security and Medicare tax paid.

FUTA tax is paid:

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

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters

Exam 9: Payroll

Gross pay = hours worked × rate per hour.

Being paid biweekly is the same as being paid semimonthly.

David is paid on a graduated commission scale at Nooter Company. He receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:

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

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:

Ron Swift earned $1,500 last week. He is married, is paid biweekly, and claims two exemptions. Using the percentage method (use tables in the handbook), his income tax is:

Social Security and Medicare tax:

The percentage method aids in calculating:

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

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

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

FICA stands for federal withholding tax.

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

The taxable earnings column of a payroll register records:

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

Being paid biweekly means the salary is paid twice a month.

The number of dependents one claims does not affect the amount of Social Security and Medicare tax paid.

FUTA tax is paid:

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

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters