Question 1

Paolo is a part-time security guard for a local facility.He earned $298.50 during the most recent weekly pay period.He is married with four withholding allowances.What is his Medicare tax liability for the pay period?

Accepted Answer

A)  $43.23 
B)  $10.54 
C)  $8.65 
D)  $4.33

Question 2

Amity is an employee with a period gross pay of $2,000.She elects to have 3% of her gross pay withheld for her 401(k) contribution.What will be her taxable income be for Federal income taxes?

Accepted Answer

A)  $2,000 
B)  $1,970 
C)  $1,940 
D)  $1,910

Question 3

What is a disadvantage to using paycards as a method of transmitting employee compensation?

Accepted Answer

A)  Convenience of retrieving pay disbursements. 
B)  Potential withdrawal and point-of-sale limitations. 
C)  Ease of paying traveling employees. 
D)  Acceptance of paycards at many locations.

Question 4

Ramani earned $1,698.50 during the most recent biweekly pay period.He contributes $100 to his 401(k) plan.He is married and claims 3 withholding allowances.Based on the following table,how much Federal income tax should be withheld from his pay?

Accepted Answer

A)  $122.00 
B)  $107.00 
C)  $99.00 
D)  $84.00

Question 5

Which Act extended health care benefits to employee dependents until age 27?

Accepted Answer

A)  Health Insurance Portability and Affordability Act 
B)  Americans with Disabilities Act 
C)  Family Medical Leave Act 
D)  Affordable Care Act

Question 6

Caroljane earned $1,120 during the most recent pay biweekly pay period.She contributes 4% of her gross pay to her 401(k) plan.She is single and has 1 withholding allowance.Based on the following table,how much Federal income tax should be withheld from her pay?

Accepted Answer

A)  $115.00 
B) $106.00 
C)  $112.00 
D)  $109.00

Question 7

Garnishments are court-ordered amounts that an employer must withhold from an employee's pre-tax pay and remit to the appropriate authority.

Accepted Answer

A) True 
 B)False

Question 8

The factors that determine an employee's Federal income tax are ____________________.

Accepted Answer

A)  Marital status, birth date, taxable pay, and pay frequency 
B)  Number of children, pay frequency, marital status, and gross pay 
C)  Marital status, number of withholdings, taxable pay, and pay frequency 
D)  Pay frequency, number of dependents, taxable pay, and marital status

Question 9

Ross is a full-time employee who earns $42,000 annually,paid semimonthly.His Federal income tax is $155.00.What is the maximum amount that may be withheld from his pay for a child-support garnishment,assuming he is not in arrears? (Do not round interim calculations,only round final answer to two decimal points.)

Accepted Answer

A)  $365.28 
B)  $730.56 
C)  $584.45 
D)  $876.68

Question 10

Trish earned $1,734.90 during the most recent semimonthly pay period.She is married and has 3 withholding allowances.Based on the following table,how much should be withheld from her gross pay for Federal income tax?

Accepted Answer

A)  $92.00 
B)  $89.00 
C)  $95.00 
D)  $69.00

Question 11

Jeannie is an adjunct faculty at a local college,where she earned $680.00 during the most recent semimonthly pay period.She is single and has one withholding allowance.What is her Social Security tax for the pay period?

Accepted Answer

A)  $48.02 
B)  $39.24 
C)  $44.18 
D)  $42.16

Question 12

Maile is a full-time exempt employee who earns $1,370.15 per biweekly payday.She is married with seven withholding allowances,so her Federal income tax is $0.She contributes 4% of her gross pay to her 401(k) and has her health insurance premium of $50 deducted on a pre-tax basis.She has $10 deducted per pay period for a Salvation Army contribution and has union dues of $40 per pay period.What is her net pay? (Do not round interim calculations,only round final answer to two decimal points.)

Accepted Answer

A)  $1,160.53 
B)  $1,114.35
)35.35 
C)  $1,124.23 
D)  $1,137.93

Question 13

Wyatt is a full-time exempt music engineer who earns $130,000 annually and is paid semimonthly.As of November 15,his year-to-date gross pay was $113,750.07.How much will be withheld for FICA taxes for the November 30 pay date? (Social Security maximum wage is $118,500.Do not round interim calculations,only round final answer to two decimal points.)

Accepted Answer

A)  $335.83 
B)  $414.37 
C)  $212.88 
D)  $373.04

Question 14

Janna is a salaried nonexempt employee who earns $30,000 for a standard 40-hour workweek and is paid biweekly.She is single with one withholding allowance.During the last pay period,she worked 5 hours of overtime.She contributes 3% of her gross pay to her 401(k) on a pre-tax basis and has a garnishment of 10% of her disposable income for a consumer credit garnishment.What is her net pay? (Use the wage-bracket method.Do not round interim calculations,only round final answer to two decimal points.)

Accepted Answer

A)  $998.90 
B)  $913.90 
C)  $897.85 
D)  $1,086.96

Question 15

Which of the following may be included as part of an employee's Section 125 "cafeteria" plan?

Accepted Answer

A)  Medical expenses 
B)  Tuition expenses 
C)  Meal expenses 
D)  Moving expenses

Question 16

The percentage of the Medicare tax withholding _________________________.

Accepted Answer

A)  Is the same for every employee, regardless of income 
B)  Is subject to change based on the firm's profitability 
C)  Changes every year in response to industry needs 
D)  Remains the same for all employees who earn less than $200,000

Question 17

Danny is a full-time exempt employee in Alabama,where the state income tax rate is 5%.He earns $78,650 annually and is paid semimonthly.He is married with four withholding allowances.His is health insurance is $100.00 per pay period and is deducted on a pre-tax basis.Danny contributes 5% of his pay to his 401(k).Assuming that he has no other deductions,what is Danny's net pay for the period? (Use the percentage method for the Federal income tax and the wage-bracket table for the state income tax.Do not round interim calculations,only round final answer to two decimal points.) $\begin{array}{c}
\begin{array}{|l|}
\hline\text {Payroll Period}\
\
\hline\text {Weekly}\
\text {Biweekly}\
\text {Semimonthly}\
\text {Monthly}\
\text {Quarterly}\
\text {Semiannually}\
\text {Annually}\
\text {Daily or miscellaneous (each day of the payroll }\
\text {period)}\
\hline
\end{array}
\begin{array}{r|}
\hline\text {One Withholding}\
\text {Allowance}\
\hline\$ 76.90 \
 153.80 \
 166.70 \
 333.30 \
 1,000.00 \
2,000.00 \
 4,000.00 \
\
 15.40 \
\hline
\end{array}
\end{array}$

Accepted Answer

A)  $2,351.71 
B)  $2,503.95 
C)  $2,829.35 
D)  $2,478.90

Question 18

Federal income tax,Medicare tax,and Social Security tax amounts withheld from employee pay are matched by amounts paid by the employer.

Accepted Answer

A) True 
 B)False

Question 19

Charitable contributions are an example of post-tax voluntary deductions.

Accepted Answer

A) True 
 B)False

Question 20

From the employer's perspective,which of the following is not an advantage of having direct deposit?

Accepted Answer

A)  Reduction in payroll processing costs. 
B)  Secure processing of employee compensation. 
C)  Vulnerability of data to computer attacks. 
D)  Employee self-maintenance of personnel records.

Exam 4: Employee Net Pay and Pay Methods

Paolo is a part-time security guard for a local facility.He earned $298.50 during the most recent weekly pay period.He is married with four withholding allowances.What is his Medicare tax liability for the pay period?

Amity is an employee with a period gross pay of $2,000.She elects to have 3% of her gross pay withheld for her 401(k) contribution.What will be her taxable income be for Federal income taxes?

What is a disadvantage to using paycards as a method of transmitting employee compensation?

Ramani earned $1,698.50 during the most recent biweekly pay period.He contributes $100 to his 401(k) plan.He is married and claims 3 withholding allowances.Based on the following table,how much Federal income tax should be withheld from his pay?

Which Act extended health care benefits to employee dependents until age 27?

Caroljane earned $1,120 during the most recent pay biweekly pay period.She contributes 4% of her gross pay to her 401(k) plan.She is single and has 1 withholding allowance.Based on the following table,how much Federal income tax should be withheld from her pay?

Garnishments are court-ordered amounts that an employer must withhold from an employee's pre-tax pay and remit to the appropriate authority.

The factors that determine an employee's Federal income tax are ____________________.

Trish earned $1,734.90 during the most recent semimonthly pay period.She is married and has 3 withholding allowances.Based on the following table,how much should be withheld from her gross pay for Federal income tax?

Jeannie is an adjunct faculty at a local college,where she earned $680.00 during the most recent semimonthly pay period.She is single and has one withholding allowance.What is her Social Security tax for the pay period?

Which of the following may be included as part of an employee's Section 125 "cafeteria" plan?

The percentage of the Medicare tax withholding _________________________.

Federal income tax,Medicare tax,and Social Security tax amounts withheld from employee pay are matched by amounts paid by the employer.

Charitable contributions are an example of post-tax voluntary deductions.

From the employer's perspective,which of the following is not an advantage of having direct deposit?