Question 1

There is a maximum amount of Medicare tax an employee can contribute in a calendar year.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Leo Corporation pays its employees on a graduated commission scale: 6% on the first $40,000 in sales, 7% on sales from $40,000 to $80,000, and 9% on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:

Accepted Answer

A) $2,400 
B) $7,450 
C) $5,200 
D) $1,350 
E) None of these 
A) $2,400 
B) $7,450 
C) $5,200 
D) $1,350 
E) None of these

Question 4

Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale: $$\begin{array} { l l } 
1 - 50 & = \$ 1.65 \
51 - 150 & = \$ 3.30 \
151 - 200 & = \$ 4.95 \
\text { Over 200 } & = \$ 6.00
\end{array}$$ 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 5

The higher the number of allowances claimed on Form W-4, the less in taxes will be taken out of one's paycheck.

Accepted Answer

A) True 
 B)False

Question 6

FUTA tax is computed by the wage-bracket table.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Bill Burton earns $750 per week plus 5% of sales in excess of $7,500. If Bill sells $34,000, how much are his weekly earnings?

Accepted Answer

750 + .05

Question 9

Calculate the gross pay for Ryan Campbell, an orange picker, based on the following differential scale. Ryan picked 3,250 oranges during this pay period.
 $$\begin{array} { | l | l | } 
\hline 1 - 1,000 & \$ .10 \
\hline 1,000 - 2,000 & \$ .13 \
\hline 2,000 - 4,000 & \$ .17 \
\hline \text { Over } 4,000 & \$ .25 \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the gross pay for Ryan Campbell,...

Question 10

Calculate the gross pay of Alice Flynn, a corn picker, assuming she picked 4,150 ears of corn:
 $$\begin{array} { | l | l | } 
\hline { \text { Corn Picked } } & \text { Rer ear } \
\hline 1 - 2,000 & \$ .04 \text { per ear } \
\hline 2, 001 - 3,000 & 05 \text { per ear } \
\hline \text { Over } 3,000 & 09 \text { per ear } \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the gross pay of Alice Flynn,...

Question 11

In the portion formula, the commission a worker receives would be the base.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Sonny Siebert earned $485,000 a year as a rookie pitcher for the Cleveland Indians. Assuming a tax rate of 6.2% for Social Security up to $128,400 and Medicare tax of 1.45%, how much did Sonny pay in FICA taxes as a rookie pitcher?

Accepted Answer

.062 × 128,400 = 7,960.80; .01

Question 14

Match the following terms with their definitions.
-W-4

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

Jasper works at Panera Company for $11.25 per hour plus a commission of 2% of her sales. Assuming Jasper worked 26 hours last week and had sales of $2,610, her gross pay is:

Accepted Answer

A) $290.50 
B) $344.70 
C) $351.20 
D) $342.00 
E) None of these 
A) $290.50 
B) $344.70 
C) $351.20 
D) $342.00 
E) None of these

Question 16

Gross pay = hours worked × rate per hour.

Accepted Answer

A) True 
 B)False

Question 17

A calendar year is July 1 to June 30.

Accepted Answer

A) True 
 B)False

Question 18

Match the following terms with their definitions.
-Straight commission

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 19

Being paid biweekly is the same as being paid semimonthly.

Accepted Answer

A) True 
 B)False

Question 20

Percentage method tables can show:

Accepted Answer

A) Weekly period rates 
B) Biweekly payroll rates 
C) Semimonthly payroll rates 
D) Monthly payroll rates 
E) All of these 
A) Weekly period rates 
B) Biweekly payroll rates 
C) Semimonthly payroll rates 
D) Monthly payroll rates 
E) All of these

Exam 9: Payroll

There is a maximum amount of Medicare tax an employee can contribute in a calendar year.

Differential pay schedule is based on:

Leo Corporation pays its employees on a graduated commission scale: 6% on the first $40,000 in sales, 7% on sales from $40,000 to $80,000, and 9% on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:

Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale: 1-50 =\ 1.65 51-150 =\ 3.30 151-200 =\ 4.95 Over 200 =\ 6.00 What is Mindy's pay if she produced 192 boots for the week?

The higher the number of allowances claimed on Form W-4, the less in taxes will be taken out of one's paycheck.

FUTA tax is computed by the wage-bracket table.

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

Bill Burton earns $750 per week plus 5% of sales in excess of $7,500. If Bill sells $34,000, how much are his weekly earnings?

Calculate the gross pay for Ryan Campbell, an orange picker, based on the following differential scale. Ryan picked 3,250 oranges during this pay period. 1-1,000 \ .10 1,000-2,000 \ .13 2,000-4,000 \ .17 Over 4,000 \ .25

Calculate the gross pay of Alice Flynn, a corn picker, assuming she picked 4,150 ears of corn: Corn Picked Rer ear 1-2,000 \ .04 per ear 2,001-3,000 05 per ear Over 3,000 09 per ear

In the portion formula, the commission a worker receives would be the base.

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

Sonny Siebert earned $485,000 a year as a rookie pitcher for the Cleveland Indians. Assuming a tax rate of 6.2% for Social Security up to $128,400 and Medicare tax of 1.45%, how much did Sonny pay in FICA taxes as a rookie pitcher?

Match the following terms with their definitions. -W-4

Jasper works at Panera Company for $11.25 per hour plus a commission of 2% of her sales. Assuming Jasper worked 26 hours last week and had sales of $2,610, her gross pay is:

Gross pay = hours worked × rate per hour.

A calendar year is July 1 to June 30.

Match the following terms with their definitions. -Straight commission

Being paid biweekly is the same as being paid semimonthly.

Percentage method tables can show:

Whole Numbers: How to Dissect and Solve Word Problems

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

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How to Read, Analyze, and Interpret Financial Reports

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