Question 1

Match the following terms with their definitions.
-FICA

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 2

Sandi works for Elizabeth Arden Cosmetics and earns $500 per week salary plus 4% commission on sales over $2,000. If Sandi sold $2,733 last week, what was her salary?

Accepted Answer

A) $1,046.66 
B) $2,743.00 
C) $609.32 
D) $906.32 
E) None of these 
A) $1,046.66 
B) $2,743.00 
C) $609.32 
D) $906.32 
E) None of these

Question 3

Paula Ryan pays her two employees $410 and $650 per week. Assume a state unemployment rate of 5.4% and a federal rate of .6%. What state and federal unemployment tax will Paula pay at the end of Quarter 1 and Quarter 2?

Accepted Answer

Quarter 1: 13 × 410 = 5,330; 13 × 650 =

Question 4

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 $128,400 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) $1,026.89 
C) $1,690.93 
D) $1,609.93 
E) None of these 
A) $528.43 
B) $1,026.89 
C) $1,690.93 
D) $1,609.93 
E) None of these

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

The base amount for calculating Social Security taxes never changes from year to year.

Accepted Answer

A) True 
 B)False

Question 7

Robert Bryan, Jr., earns $400 per week plus 3% of sales in excess of $7,000. If Robert sells $21,000, how much are his weekly earnings?

Accepted Answer

$400 + (.0

Question 8

To date, Jay Ward has cumulative earnings of $118,000. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare):

Accepted Answer

A) $186.00 
B) $31.00 
C) $57.66 
D) $180.00 
E) None of these 
A) $186.00 
B) $31.00 
C) $57.66 
D) $180.00 
E) None of these

Question 9

An override can never help increase a manager's total pay.

Accepted Answer

A) True 
 B)False

Question 10

Calculate Jim's gross pay (assume time and a half over 40 hours):
 $\begin{array}{|l|l|l|l|l|l|l|l|l}
\hline\mathbf{M} & \text { T } & \text { W } & \text { TH } & \text { F } & \text { S } & \begin{array}{l}
\text { Total } \
\text { Hrs }
\end{array} & \begin{array}{l}
\text { Rate per } \
\text { Hr }
\end{array} & \begin{array}{l}
\text { Total } \
\text { Pay }
\end{array} \
\hline 10 & 8 & 71 / 2 & 8^{1 / 4} & 12^{1 / 4} & 0 & \text { A } & \$ 9.50 & B\
\hline
\end{array}$

Accepted Answer

A. 46 hour

Question 11

Calculate the net pay. The balance before this weekly payroll is $90 below maximum as related to cumulative earnings in calculating Social Security. Assume a tax rate of 6.2% for Social Security on $128,400 and 1.45% for Medicare:
 $$\begin{array} { | l | l | l | l | l | l | l | l | } 
\hline \text { Name } & \begin{array} { l } 
\text { Marital } \
\text { Status }
\end{array} & \begin{array} { l } 
\text { Exemptions } \
\text { Claimed }
\end{array} & \text { Gross } & \text { FIT } & \text { Soc Sec } & \text { Medicare } & \text { Net Pay } \
\hline \text { B Burns } & \text { M } & 2 & \$ 900 & \text { A } & \text { B } & \text { C } & \text { D } \
\hline
\end{array}$$

Accepted Answer

A)$54.89 B)SS = $5.5

Question 12

Jim Long earned $1,900 biweekly. He claims two exemptions and is married. As his accountant, calculate his federal income tax deduction. Use the percentage method. (Use the tables in the handbook to answer this question.)

Accepted Answer

1,900 - (2 × 159.60)

Question 13

SUTA tax is usually paid quarterly.

Accepted Answer

A) True 
 B)False

Question 14

Straight piece rate pay provides a worker an incentive to produce more since pay is based on the number of units produced.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Ron Smith has cumulative earnings of $110,100. This week he is paid $2,000. Assuming the Social Security rate is 6.2% on $128,400 and 1.45% for Medicare, what is the amount of Social Security and Medicare taken out of Ron's earnings?

Accepted Answer

Social Security: $2,

Question 17

Match the following terms with their definitions.
-Gross 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 18

Complete the following weekly payroll:
Assume: (1)FIT calculated by percentage method; (2)Social Security 6.2% on $128,400; and Medicare 1.45%.Cumulative balance before this payroll is below maximum as related to cumulative earnings in calculating Social Security.
 $\begin{array}{|c|c|c|c|c|c|c|c|}
\hline \text { Name } & \begin{array}{l}
\text { Marital } \
\text { Status }
\end{array} & \begin{array}{l}
\text { Exemptions } \
\text { Claimed } \
\end{array} & \text { Gross } & \text { FIT } & \begin{array}{|l}
\text { Social } \
\text { Security }
\end{array} & \text { Medicare } & \text { Net Pay } \
\hline \text { Joe Riense } & \text { M } & 3 & \$ 1,400 & \text { A } & \text { B } & \text { C } & \mathrm{D} \
\hline
\end{array}$

Accepted Answer

A. $105.31

Question 19

Janice Tax, an accountant for Flee Corp., earned $122,700 from January to June. In July she earned $8,000. Assuming a FICA tax rate of 6.2% for Social Security on $128,400 and 1.45% for Medicare, what is the FICA amount for the month?

Accepted Answer

5,700 × .062 = $353.

Question 20

Lana Powell has cumulative earnings of $116,000 at the end of September. In the first week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is (assume Social Security rate of 6.2% on $118,500 and Medicare of 1.45%):

Accepted Answer

A) $29.00 
B) $153.00 
C) $53.20 
D) $92.00 
E) None of these 
A) $29.00 
B) $153.00 
C) $53.20 
D) $92.00 
E) None of these

Match the following terms with their definitions. -FICA

Sandi works for Elizabeth Arden Cosmetics and earns $500 per week salary plus 4% commission on sales over $2,000. If Sandi sold $2,733 last week, what was her salary?

Paula Ryan pays her two employees $410 and $650 per week. Assume a state unemployment rate of 5.4% and a federal rate of .6%. What state and federal unemployment tax will Paula pay at the end of Quarter 1 and Quarter 2?

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:

The base amount for calculating Social Security taxes never changes from year to year.

Robert Bryan, Jr., earns $400 per week plus 3% of sales in excess of $7,000. If Robert sells $21,000, how much are his weekly earnings?

To date, Jay Ward has cumulative earnings of $118,000. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare):

An override can never help increase a manager's total pay.

Calculate Jim's gross pay (assume time and a half over 40 hours): T W TH F S Total Hrs Rate per Hr Total Pay 10 8 71/2 1 0 A \ 9.50 B

Jim Long earned $1,900 biweekly. He claims two exemptions and is married. As his accountant, calculate his federal income tax deduction. Use the percentage method. (Use the tables in the handbook to answer this question.)

SUTA tax is usually paid quarterly.

Straight piece rate pay provides a worker an incentive to produce more since pay is based on the number of units produced.

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

Ron Smith has cumulative earnings of $110,100. This week he is paid $2,000. Assuming the Social Security rate is 6.2% on $128,400 and 1.45% for Medicare, what is the amount of Social Security and Medicare taken out of Ron's earnings?

Match the following terms with their definitions. -Gross pay

Janice Tax, an accountant for Flee Corp., earned $122,700 from January to June. In July she earned $8,000. Assuming a FICA tax rate of 6.2% for Social Security on $128,400 and 1.45% for Medicare, what is the FICA amount for the month?

Lana Powell has cumulative earnings of $116,000 at the end of September. In the first week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is (assume Social Security rate of 6.2% on $118,500 and Medicare of 1.45%):

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

Life, Fire, and Auto Insurance

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters

Exam 9: Payroll

Match the following terms with their definitions. -FICA

Sandi works for Elizabeth Arden Cosmetics and earns $500 per week salary plus 4% commission on sales over $2,000. If Sandi sold $2,733 last week, what was her salary?

Paula Ryan pays her two employees $410 and $650 per week. Assume a state unemployment rate of 5.4% and a federal rate of .6%. What state and federal unemployment tax will Paula pay at the end of Quarter 1 and Quarter 2?

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:

The base amount for calculating Social Security taxes never changes from year to year.

Robert Bryan, Jr., earns $400 per week plus 3% of sales in excess of $7,000. If Robert sells $21,000, how much are his weekly earnings?

To date, Jay Ward has cumulative earnings of $118,000. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare):

An override can never help increase a manager's total pay.

Calculate Jim's gross pay (assume time and a half over 40 hours): T W TH F S Total Hrs Rate per Hr Total Pay 10 8 71/2 1 0 A \ 9.50 B

Jim Long earned $1,900 biweekly. He claims two exemptions and is married. As his accountant, calculate his federal income tax deduction. Use the percentage method. (Use the tables in the handbook to answer this question.)

SUTA tax is usually paid quarterly.

Straight piece rate pay provides a worker an incentive to produce more since pay is based on the number of units produced.

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

Ron Smith has cumulative earnings of $110,100. This week he is paid $2,000. Assuming the Social Security rate is 6.2% on $128,400 and 1.45% for Medicare, what is the amount of Social Security and Medicare taken out of Ron's earnings?

Match the following terms with their definitions. -Gross pay

Janice Tax, an accountant for Flee Corp., earned $122,700 from January to June. In July she earned $8,000. Assuming a FICA tax rate of 6.2% for Social Security on $128,400 and 1.45% for Medicare, what is the FICA amount for the month?

Lana Powell has cumulative earnings of $116,000 at the end of September. In the first week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is (assume Social Security rate of 6.2% on $118,500 and Medicare of 1.45%):

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

Life, Fire, and Auto Insurance

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters