Exam 5: Unemployment Compensation Taxes

Which of the following states do not have state income tax deducted from employee pay? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Which of the following statements is/are true about Social Security tax deductions from gross pay? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

When a payroll check is subject to escheatment, who handles the distribution of the money?

The percentage of the Medicare tax withholding _______ .

Which of the following statements is/are true about Medicare tax? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

The use of paycards as a means of transmitting employee pay began in the 1990s with over-the-road drivers out of a need to transmit funds reliably on payday.

Post-Tax Deductions are amounts _______ .

Best practices for paying employees by check include which of the following? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Federal income tax, Medicare tax, and Social Security tax amounts withheld from employee pay are computed based on gross pay, less pre-tax deductions, and deducted to arrive at net pay.

Charitable contributions are an example of post-tax voluntary deductions.

Which of the following federal withholding allowance scenarios will have the highest income tax?

What is an advantage of direct deposit from the employee's perspective?

What role does the employer play regarding an employee's federal withholding tax?

Why do employers use checks as an employment payment method?

Garnishments are court-ordered amounts that an employer must withhold from an employee's pre-tax pay and remit to the appropriate authority.

The purpose of the wage base used for the Social Security tax is _______ .

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

The wage-bracket of determining federal tax withholding yields more accurate amounts than the percentage method.

Which are steps in the net pay computation process? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Computation of net pay involves deducting mandatory and voluntary deductions from gross pay.