Question 1

If Robert worked 38 hours, how many hours of overtime will Robert earn?

Accepted Answer

A)  0 
B)  2.5 
C)  5 
D)  9 
A)  0 
B)  2.5 
C)  5 
D)  9

Question 2

A pay period is defined as:

Accepted Answer

A)  weekly. 
B)  biweekly. 
C)  monthly. 
D)  All of the above are correct. 
A)  weekly. 
B)  biweekly. 
C)  monthly. 
D)  All of the above are correct.

Question 3

An employee earns $16 per hour. He worked 45 hours the last week of January (assuming time and a half for overtime).
Calculate the total amount of employee deductions.
The business is involved in interstate commerce.
Federal Income Tax rate = 20%
State Income Tax rate = 5%
FICA rate OASDI = 6.2% and Medicare = 1.45%
FUTA rate = .8%
SUTA rate = 5.6%
$ ________

Accepted Answer

$248.14 ($

Question 4

A company can deem an employee as salaried:

Accepted Answer

A)  if they do not want to pay overtime wages. 
B)  if the employee meets the salaried laws under the Fair Labor Standards Act. 
C)  if the employee works at least 40 hours a week for a month. 
D)  if they have been employed at the company for 1 year or longer. 
A)  if they do not want to pay overtime wages. 
B)  if the employee meets the salaried laws under the Fair Labor Standards Act. 
C)  if the employee works at least 40 hours a week for a month. 
D)  if they have been employed at the company for 1 year or longer.

Question 5

Barbara's cumulative earnings before this pay period were $7,600 and gross pay for the week is $800. Assuming the wage base limit is $7,000, how much of this week's pay is subject to taxes for FUTA and SUTA?

Accepted Answer

A)  $800 
B)  $600 
C)  $0 
D)  $400 
A)  $800 
B)  $600 
C)  $0 
D)  $400

Question 6

Gross pay is the amount that the employee takes home.

Accepted Answer

A) True 
 B)False

Question 7

The use of a payroll register to record a company's payroll is not optional.

Accepted Answer

A) True 
 B)False

Question 8

Sue's Jewelry Shoppe's July payroll includes the following data:   The employer's payroll tax for the period would be: (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

Accepted Answer

A)  $918. 
B)  $1,086. 
C)  $168. 
D)  $966. 
A)  $918. 
B)  $1,086. 
C)  $168. 
D)  $966.

Question 9

To examine in detail the weekly payroll of all employees, one would look at the:

Accepted Answer

A)  W-2. 
B)  W-4. 
C)  payroll register. 
D)  employee earnings record. 
A)  W-2. 
B)  W-4. 
C)  payroll register. 
D)  employee earnings record.

Question 10

Gross pay is equal to take-home pay less federal withholdings.

Accepted Answer

A) True 
 B)False

Question 11

Dave Brown's cumulative earnings are $90,000, and his gross pay for the week is $6,700. If the FICA rates are: OASDI 6.2% on a limit of $128,400 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week? (Round your answers to the nearest whole dollar.)

Accepted Answer

A)  $0; $97 
B)  $415; $0 
C)  $415; $97 
D)  $4,154; $972 
A)  $0; $97 
B)  $415; $0 
C)  $415; $97 
D)  $4,154; $972

Question 12

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

Accepted Answer

Federal, state and local laws

Question 13

What is required of an employer by the Federal Insurance Contributions Act?

Accepted Answer

The employer is required to withhold FIC

Question 14

Calculate the total wages earned for each employee (assume an overtime rate of time and a half over 40 hours):
a) Sam earns $25 per hour and worked 45 hours in one week.
b) Jim earns $20 per hour and worked 42 hours in one week.

Accepted Answer

a) $1,187.

Question 15

Beth's earnings during the month of May were $1,200. Her earnings for the year prior to May were $12,800. Beth's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000. The employer's unemployment payroll tax expense for May is:

Accepted Answer

A)  $34. 
B)  $10. 
C)  $0. 
D)  $24. 
A)  $34. 
B)  $10. 
C)  $0. 
D)  $24.

Question 16

An employee earns $35 per hour. She worked 51 hours the third week of January.
Calculate the gross pay.
The business is involved in interstate commerce.
Federal Income Tax rate = 20%
State Income Tax rate = 5%
FICA rate OASDI = 6.2% and Medicare = 1.45%
FUTA rate = .8%
SUTA rate = 5.6%
$ ________

Accepted Answer

$1,977.50

Question 17

Which tax does NOT have a wage base limit?

Accepted Answer

A)  State unemployment tax 
B)  Federal unemployment tax 
C)  FICA-Medicare 
D)  FICA-OASDI 
A)  State unemployment tax 
B)  Federal unemployment tax 
C)  FICA-Medicare 
D)  FICA-OASDI

Question 18

The payroll register includes sections for recording:

Accepted Answer

A)  gross pay, deductions, and net pay. 
B)  assets, liabilities, equity, revenues, and expenses. 
C)  employee home address and phone number. 
D)  accrued expenses, unearned revenues, and net pay. 
A)  gross pay, deductions, and net pay. 
B)  assets, liabilities, equity, revenues, and expenses. 
C)  employee home address and phone number. 
D)  accrued expenses, unearned revenues, and net pay.

Question 19

The federal government is responsible for administering an unemployment program for each state.

Accepted Answer

A) True 
 B)False

Question 20

Payroll tax deductions are not expenses of the employer.

Accepted Answer

A) True 
 B)False

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

If Robert worked 38 hours, how many hours of overtime will Robert earn?

A pay period is defined as:

A company can deem an employee as salaried:

Barbara's cumulative earnings before this pay period were $7,600 and gross pay for the week is $800. Assuming the wage base limit is $7,000, how much of this week's pay is subject to taxes for FUTA and SUTA?

Gross pay is the amount that the employee takes home.

The use of a payroll register to record a company's payroll is not optional.

Sue's Jewelry Shoppe's July payroll includes the following data: The employer's payroll tax for the period would be: (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

To examine in detail the weekly payroll of all employees, one would look at the:

Gross pay is equal to take-home pay less federal withholdings.

Dave Brown's cumulative earnings are $90,000, and his gross pay for the week is $6,700. If the FICA rates are: OASDI 6.2% on a limit of $128,400 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week? (Round your answers to the nearest whole dollar.)

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

What is required of an employer by the Federal Insurance Contributions Act?

Calculate the total wages earned for each employee (assume an overtime rate of time and a half over 40 hours): a) Sam earns $25 per hour and worked 45 hours in one week. b) Jim earns $20 per hour and worked 42 hours in one week.

Beth's earnings during the month of May were $1,200. Her earnings for the year prior to May were $12,800. Beth's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000. The employer's unemployment payroll tax expense for May is:

An employee earns $35 per hour. She worked 51 hours the third week of January. Calculate the gross pay. The business is involved in interstate commerce. Federal Income Tax rate = 20% State Income Tax rate = 5% FICA rate OASDI = 6.2% and Medicare = 1.45% FUTA rate = .8% SUTA rate = 5.6% $ ________

Which tax does NOT have a wage base limit?

The payroll register includes sections for recording:

The federal government is responsible for administering an unemployment program for each state.

Payroll tax deductions are not expenses of the employer.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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