Exam 7: Employee Earnings and Deductions

In determining whether an employee's accumulated earnings have reached the maximum amount subject to FICA tax deductions, the employer must use the calendar year, even if the business operates on a fiscal year ending June 30.

Match the terms below with the correct definitions. -Withholding allowances

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.

Money paid to a person for managerial or administrative services is usually called wages, and the time period covered is usually hours or weeks.

To examine in detail the weekly payroll figures of all employees, one would look at

The total amount of employee compensation before deductions are taken out is referred to as

In a payroll journal entry, a credit to Federal Withholding Tax Payable indicates

A plumber who sets his own work schedule is an example of:

An amount of an individual's earnings that is exempt from income taxes is called a(n)

Match the terms below with the correct definitions. -Employee's record that shows personal payroll data

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

Match the terms below with the correct definitions. -Taxes paid only by employers under the provisions of the Federal Unemployment Tax Act

Types of compensation that an employee might receive include

Sally worked 45 hours during the week at an hourly rate of $10 per hour. Assume that Sally's overtime rate is paid at time and a half over 40 hours. What is Sally's gross pay for the week?

All payroll deductions withheld from employees become an expense for the employer.

All of the following are optional deductions except

Social Security taxes and Medicare taxes are paid by both the employer and the employee.

The Social Security Act of 1935 was originally enacted to provide

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

Net pay is the same as