Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Rodney Ranger is a shoe salesman for More Co. He is paid $8.60 per hour plus a commission of 3% on all sales. For the week, assuming Rodney works 30 hours and has sales of $2,400, what is his gross pay?

Accepted Answer

(8.60 × 30

Question 3

A merit rating system for SUTA means:

Accepted Answer

A) Rates cannot change 
B) State rates will always be lower 
C) Rate varies with employment record 
D) FUTA will increase 
E) None of these 
A) Rates cannot change 
B) State rates will always be lower 
C) Rate varies with employment record 
D) FUTA will increase 
E) None of these

Question 4

Joyce Meadow pays her three workers $160, $470, and $800, respectively, per week. Calculate what Joyce will pay at the end of the first quarter for (A)state unemployment and (B)federal unemployment. Assume a state rate of 5.4%. Federal rate is .6%. Base is $7,000.

Accepted Answer

Total pay worker 1: 13 × 160 = 2,080, T

Question 5

A quarter is 13 weeks.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

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) All 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) All of these

Question 8

Match the following terms with their definitions.
-Variable commission scale

Accepted Answer

A) May be used in calculating Social Security and Medicare 
B) Pay rate based on schedule of units completed 
C) Income tax 
D) Minimum wage standard 
E) Alternative method to percentage method
F)52 times a year
G)Aids in determining amount of FIT withheld
H)26 times a year
I)Method to calculate FIT
J)24 times a year
K)Different levels result in different commission scales
L)Wages subject to tax
M)Commission to manager
N)Broken down into Social Security and Medicare
O)Wages before deductions
P)Gross pay minus deductions
Q)Aids unemployment program
R)Wages based on percent of the value of goods sold
S)Affected by company's employment record 
A) May be used in calculating Social Security and Medicare 
B) Pay rate based on schedule of units completed 
C) Income tax 
D) Minimum wage standard 
E) Alternative method to percentage method
F)52 times a year
G)Aids in determining amount of FIT withheld
H)26 times a year
I)Method to calculate FIT
J)24 times a year
K)Different levels result in different commission scales
L)Wages subject to tax
M)Commission to manager
N)Broken down into Social Security and Medicare
O)Wages before deductions
P)Gross pay minus deductions
Q)Aids unemployment program
R)Wages based on percent of the value of goods sold
S)Affected by company's employment record

Question 9

Aley Company pays all its employees a graduated commission scale: 3% on the first $30,000 sales, 5% on sales from $30,001 to $110,000, and 7% on sales more than $110,000. Jim Jones, an employee of Aley, had $130,000 in sales. What commission did Jim earn?

Accepted Answer

(30,000 × .03)+ (80,

Question 10

Payroll registers cannot record cumulative earnings.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

Match the following terms with their definitions.
-Biweekly

Accepted Answer

A) May be used in calculating Social Security and Medicare 
B) Pay rate based on schedule of units completed 
C) Income tax 
D) Minimum wage standard 
E) Alternative method to percentage method
F)52 times a year
G)Aids in determining amount of FIT withheld
H)26 times a year
I)Method to calculate FIT
J)24 times a year
K)Different levels result in different commission scales
L)Wages subject to tax
M)Commission to manager
N)Broken down into Social Security and Medicare
O)Wages before deductions
P)Gross pay minus deductions
Q)Aids unemployment program
R)Wages based on percent of the value of goods sold
S)Affected by company's employment record 
A) May be used in calculating Social Security and Medicare 
B) Pay rate based on schedule of units completed 
C) Income tax 
D) Minimum wage standard 
E) Alternative method to percentage method
F)52 times a year
G)Aids in determining amount of FIT withheld
H)26 times a year
I)Method to calculate FIT
J)24 times a year
K)Different levels result in different commission scales
L)Wages subject to tax
M)Commission to manager
N)Broken down into Social Security and Medicare
O)Wages before deductions
P)Gross pay minus deductions
Q)Aids unemployment program
R)Wages based on percent of the value of goods sold
S)Affected by company's employment record

Question 14

Match the following terms with their definitions.
-Differential pay

Accepted Answer

A) May be used in calculating Social Security and Medicare 
B) Pay rate based on schedule of units completed 
C) Income tax 
D) Minimum wage standard 
E) Alternative method to percentage method
F)52 times a year
G)Aids in determining amount of FIT withheld
H)26 times a year
I)Method to calculate FIT
J)24 times a year
K)Different levels result in different commission scales
L)Wages subject to tax
M)Commission to manager
N)Broken down into Social Security and Medicare
O)Wages before deductions
P)Gross pay minus deductions
Q)Aids unemployment program
R)Wages based on percent of the value of goods sold
S)Affected by company's employment record 
A) May be used in calculating Social Security and Medicare 
B) Pay rate based on schedule of units completed 
C) Income tax 
D) Minimum wage standard 
E) Alternative method to percentage method
F)52 times a year
G)Aids in determining amount of FIT withheld
H)26 times a year
I)Method to calculate FIT
J)24 times a year
K)Different levels result in different commission scales
L)Wages subject to tax
M)Commission to manager
N)Broken down into Social Security and Medicare
O)Wages before deductions
P)Gross pay minus deductions
Q)Aids unemployment program
R)Wages based on percent of the value of goods sold
S)Affected by company's employment record

Question 15

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

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

Match the following terms with their definitions.
-Wage bracket

Accepted Answer

A) May be used in calculating Social Security and Medicare 
B) Pay rate based on schedule of units completed 
C) Income tax 
D) Minimum wage standard 
E) Alternative method to percentage method
F)52 times a year
G)Aids in determining amount of FIT withheld
H)26 times a year
I)Method to calculate FIT
J)24 times a year
K)Different levels result in different commission scales
L)Wages subject to tax
M)Commission to manager
N)Broken down into Social Security and Medicare
O)Wages before deductions
P)Gross pay minus deductions
Q)Aids unemployment program
R)Wages based on percent of the value of goods sold
S)Affected by company's employment record 
A) May be used in calculating Social Security and Medicare 
B) Pay rate based on schedule of units completed 
C) Income tax 
D) Minimum wage standard 
E) Alternative method to percentage method
F)52 times a year
G)Aids in determining amount of FIT withheld
H)26 times a year
I)Method to calculate FIT
J)24 times a year
K)Different levels result in different commission scales
L)Wages subject to tax
M)Commission to manager
N)Broken down into Social Security and Medicare
O)Wages before deductions
P)Gross pay minus deductions
Q)Aids unemployment program
R)Wages based on percent of the value of goods sold
S)Affected by company's employment record

Question 18

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 minus the draw is:

Accepted Answer

A) $6,410 
B) $6,041 
C) $6,014 
D) $5,200 
E) None of these 
A) $6,410 
B) $6,041 
C) $6,014 
D) $5,200 
E) None of these

Question 19

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 20

An employee's commission is always based on total dollar sales.

Accepted Answer

A) True 
 B)False

Exam 9: Payroll

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

Rodney Ranger is a shoe salesman for More Co. He is paid $8.60 per hour plus a commission of 3% on all sales. For the week, assuming Rodney works 30 hours and has sales of $2,400, what is his gross pay?

A merit rating system for SUTA means:

Joyce Meadow pays her three workers $160, $470, and $800, respectively, per week. Calculate what Joyce will pay at the end of the first quarter for (A)state unemployment and (B)federal unemployment. Assume a state rate of 5.4%. Federal rate is .6%. Base is $7,000.

A quarter is 13 weeks.

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

The more allowances claimed on Form W-4:

Match the following terms with their definitions. -Variable commission scale

Aley Company pays all its employees a graduated commission scale: 3% on the first $30,000 sales, 5% on sales from $30,001 to $110,000, and 7% on sales more than $110,000. Jim Jones, an employee of Aley, had $130,000 in sales. What commission did Jim earn?

Payroll registers cannot record cumulative earnings.

FUTA tax is paid:

Social Security and Medicare tax:

Match the following terms with their definitions. -Biweekly

Match the following terms with their definitions. -Differential pay

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

The percentage method aids in calculating:

Match the following terms with their definitions. -Wage bracket

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 minus the draw is:

FICA tax base:

An employee's commission is always based on total dollar sales.

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