Question 1

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 2

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

Accepted Answer

The answer of Match the terms below with the correct...

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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

Accepted Answer

A) the payroll register. 
B) the employee's individual earnings record. 
C) time cards. 
D) Form W-4. 
E) the general ledger.

Question 6

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

Accepted Answer

A) gross pay. 
B) net pay. 
C) compensation after withholdings. 
D) take-home pay. 
E) merit pay.

Question 7

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

Accepted Answer

A) Federal taxes have been withheld from the employee and are a liability until paid to the governing agency 
B) Federal taxes have been paid to the governing agency 
C) Federal taxes are due to be withheld from the employee 
D) None of the above

Question 8

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

Accepted Answer

A) Independent Contractor 
B) Employee 
C) Employer 
D) Freelancer

Question 9

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

Accepted Answer

A) bonus. 
B) employee deduction. 
C) withholding allowance. 
D) salary. 
E) premium.

Question 10

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

Accepted Answer

The answer of Match the terms below with the correct...

Question 11

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

Accepted Answer

A) Clerical Worker 
B) Factory Worker 
C) Janitor 
D) Janitorial Service

Question 12

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

Accepted Answer

The answer of Match the terms below with the correct...

Question 13

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 14

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?

Accepted Answer

A) $325 
B) $450 
C) $475 
D) $675

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

The Social Security Act of 1935 was originally enacted to provide

Accepted Answer

A) Benefits for Spouses 
B) Benefits for Minor Children 
C) Benefits for Retired Workers 
D) Disability Insurance

Question 19

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

Accepted Answer

A) an employer. 
B) an employee. 
C) an independent contractor. 
D) either an employer or an employee. 
E) a company's manager.

Question 20

Net pay is the same as

Accepted Answer

A) Total earnings 
B) Take home pay 
C) Earnings before taxes 
D) Pay before deductions

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