Exam 7: Employee Earnings and Deductions

Ashley earns an hourly rate of $15 and worked 48 hours in one week. She had taxes withheld totaling $175 and union dues deducted for $50. Assuming that Ashley receives overtime at a rate of 1.5 what would her net earnings be for the week?

Types of deductions from employees' earnings include

Sarah, an employee of Allen Company, worked 45 hours during the week of August 29. Her rate of pay is $18.50 per hour, and she receives time-and-a-half for work in excess of 40 hours per week. Sarah is single and claims zero allowances on her W-4 form. Her YTD (year-to-date) earnings before this pay period are $34,730 with wages subject to the following deductions: Instructions: 1.Compute Sarah's regular pay, gross pay, and net pay. 2.Record this pay information in Sarah's employee earnings record, using check number 152.

In a payroll entry, a credit to Accounts Receivable indicates that

For which of the following taxes is there a ceiling on the amount of annual employee earnings subject to the tax?

A person who performs a service for a fixed amount and is not under the specific direction of the party being served is called

Employees may be paid hourly or salary based on the following:

Compare and contrast an employee and an independent contractor.

What are the two parts of FICA taxes?

The 941 employer's tax payment to the IRS consists of

Gross pay less one or more deductions equals net pay.

Which of the following payroll taxes is the employee's responsibility?

Pre-tax deductions mean

Gross pay is the total amount of salary or wages before deductions and taxes.

Jerry Whiten is paid a commission of 15% on sales he makes for XYZ Motors. What are Jerry's total earnings if he sold $55,000 last month?

An example of who is NOT most likely under the direct control of an employer and classified as an independent contractor.

Employees who are paid a regular salary are not entitled to premium pay for overtime.

Julie is employed as a salesperson at ABC Motors. She receives a salary of $1,200 a month, plus 15% commissions on the profit from her sales during the month. If Julie's sales profit for August is $25,000 what is her total gross pay?

The amount of federal income tax withheld from an employee's paycheck is affected by whether the employee claims to be single or married on the W-2 form.