Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Michael Cruz works 45 hours at a bakery, earning $12.50 per hour. Michael is entitled to overtime pay for all hours worked in excess of 40 hours at 1.50 times his regular hourly rate. Calculate Michael's weekly pay. Give the answer to two decimal places.

Accepted Answer

A)  $562.50 
B)  $593.75 
C)  $568.75 
D)  $703.75

Question 3

Types of compensation that an employee might receive include

Accepted Answer

A)  a bonus. 
B)  cost of living adjustments. 
C)  profit sharing. 
D)  a commission. 
E)  all of these.

Question 4

Mike earns wages of $1,000. He increases the number of allowances claimed from 2 to 4. The amount of income tax to be withheld:

Accepted Answer

A)  will increase. 
B)  will decrease. 
C)  will not change. 
D)  will double.

Question 5

Match the terms below with the correct definitions.
-The form that specifies the number of exemptions claimed by each employee

Accepted Answer

A) FICA taxes 
B) Payroll register 
C) Employer 
D) Gross pay 
E) Workers' compensation laws
F)Employee's withholding allowance certificate (W-4)
G)Exemptions
H)Independent contractor
I)FUTA taxes
J)Employee's individual earnings record

Question 6

Match the terms below with the correct definitions.
-Self-employed person

Accepted Answer

A) FICA taxes 
B) Payroll register 
C) Employer 
D) Gross pay 
E) Workers' compensation laws
F)Employee's withholding allowance certificate (W-4)
G)Exemptions
H)Independent contractor
I)FUTA taxes
J)Employee's individual earnings record

Question 7

All of the following are optional deductions except

Accepted Answer

A)  charitable contributions. 
B)  medical insurance. 
C)  union dues. 
D)  Medicare tax. 
E)  life insurance.

Question 8

Mia's employer pays time-and-a-half for all hours worked in excess of 8 hours per day and double time for all hours worked on Sundays. Mia's regular hourly rate is $10 per hour. During the week, Mia worked the following hours: Monday, 9; Tuesday, 10; Wednesday, 8; Thursday, 9; Friday, 8; Sunday, 5. Total gross wages are:

Accepted Answer

A)  $560.00. 
B)  $528.00. 
C)  $630.00. 
D)  $650.00. 
E)  $640.00.

Question 9

The W-4 form lists all of all of the following EXCEPT one:

Accepted Answer

A)  Lists the number of allowances claimed 
B)  Shows the filing status 
C)  Lists the employee's Social Security Number 
D)  Lists the total wages to be earned

Question 10

An employee's total earnings for a payroll period are called gross pay.

Accepted Answer

A) True 
 B)False

Question 11

A law that regulates overtime earnings is called:

Accepted Answer

A)  Federal Unemployment Tax Act 
B)  Tax Payment Act 
C)  Fair Labor Standards Act 
D)  Federal Insurance Contribution Act

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

The source of information for the employee's individual earnings record is

Accepted Answer

A)  the payroll register. 
B)  Form W-2. 
C)  Form W-4. 
D)  employees' time cards. 
E)  the general ledger.

Question 14

A person who works for compensation under the direction and control of the employer is called an independent contractor.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) FICA taxes 
B) Payroll register 
C) Employer 
D) Gross pay 
E) Workers' compensation laws
F)Employee's withholding allowance certificate (W-4)
G)Exemptions
H)Independent contractor
I)FUTA taxes
J)Employee's individual earnings record

Question 16

Explain the difference between gross and net pay, including how each is calculated.

Accepted Answer

The answer of Explain the difference between gross and net...

Question 17

Which of the following would NOT be an employee payroll deduction?

Accepted Answer

A)  Federal Income Tax 
B)  State Income Tax 
C)  401(k) 
D)  FUTA

Question 18

Match the terms below with the correct definitions.
-An employee's total pay before any deductions

Accepted Answer

A) FICA taxes 
B) Payroll register 
C) Employer 
D) Gross pay 
E) Workers' compensation laws
F)Employee's withholding allowance certificate (W-4)
G)Exemptions
H)Independent contractor
I)FUTA taxes
J)Employee's individual earnings record

Question 19

Totals for payroll journal entries are obtained from:

Accepted Answer

A)  a payroll register 
B)  an employee's pay check 
C)  a W-4 statement 
D)  a payroll bank account

Question 20

For which of the following taxes is there no ceiling on the amount of annual employee earnings subject to the tax?

Accepted Answer

A)  Federal income tax 
B)  Federal unemployment tax 
C)  FICA SS tax 
D)  Charitable contributions tax 
E)  State unemployment tax

Exam 7: Employee Earnings and Deductions

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

Michael Cruz works 45 hours at a bakery, earning $12.50 per hour. Michael is entitled to overtime pay for all hours worked in excess of 40 hours at 1.50 times his regular hourly rate. Calculate Michael's weekly pay. Give the answer to two decimal places.

Types of compensation that an employee might receive include

Mike earns wages of $1,000. He increases the number of allowances claimed from 2 to 4. The amount of income tax to be withheld:

Match the terms below with the correct definitions. -The form that specifies the number of exemptions claimed by each employee

Match the terms below with the correct definitions. -Self-employed person

All of the following are optional deductions except

The W-4 form lists all of all of the following EXCEPT one:

An employee's total earnings for a payroll period are called gross pay.

A law that regulates overtime earnings is called:

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.

The source of information for the employee's individual earnings record is

A person who works for compensation under the direction and control of the employer is called an independent contractor.

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

Explain the difference between gross and net pay, including how each is calculated.

Which of the following would NOT be an employee payroll deduction?

Match the terms below with the correct definitions. -An employee's total pay before any deductions

Totals for payroll journal entries are obtained from:

For which of the following taxes is there no ceiling on the amount of annual employee earnings subject to the tax?