Deck 10: Payroll

Question 1

The amount of earnings after deductions is called take-home pay.

Answer 1

True

Question 2

Employee contributions to Medicare are limited on an annual basis.

Answer 2

False

Question 3

The amount of Social Security tax and Medicare tax can change from year to year.

Answer 3

True

Question 4

The Federal Insurance Contribution Act resulted in what tax?

A) withholding
B) Social Security
C) FUTA
D) SUTA

Question 5

All earnings are typically subject to Medicare tax, while Social Security earnings:

A) are capped at 5.4% FUTA per quarter
B) are capped at $100,000 per quarter
C) are capped at $110,100 per year
D) are reduced by withholding allowances

Question 6

The amount earned before deductions is called:

A) gross earnings
B) take-home pay
C) withholdings
D) net earnings

Question 7

The Fair Labor Standards Act of 1938 set the standard work week at 40 hours.

Question 8

The amount of your earnings remaining after all deductions is called gross pay.

Question 9

State unemployment tax is fixed with all states charging the same rate.

Question 10

IRS form W-4 is:

A) used solely for the calculation of federal income taxes
B) used to calculate Social Security and Medicare taxes
C) used to report withheld taxes to the IRS
D) used for income tax preparation

Question 11

The amount of federal income tax to be withheld from employee's paychecks can be calculated by:

A) either the percentage method or the wage-bracket table method
B) the percentage-bracket method
C) only by the percentage method
D) only by the wage-bracket method

Question 12

The amount of Social Security tax and Medicare tax withheld from a paycheck is not influenced by the number of dependents claimed by the employee.

Question 13

A wage is normally stated as a fixed amount of money paid each year to an employee.

Question 14

Receiving a paycheck biweekly means that there are two pay periods per month or 24 in one year.

Question 15

The amount of earnings that will not be subject to federal income tax is called an exemption.

Question 16

An employee's gross pay is equal to:

A) budgeted hours times rate per hour
B) overtime pay plus withholdings
C) actual hours worked times rate of pay
D) net pay minus withholdings

Question 17

When your payday falls every two weeks, your payroll frequently is said to be:

A) biweekly
B) monthly
C) semimonthly
D) weekly

Question 18

There are two methods, the wage bracket tables and the percentage, for calculating the amount of federal income tax.

Question 19

On an employee's paycheck, after all deductions have been made the amount that remains is called:

A) net earnings
B) deductions
C) take-home pay
D) either net earnings or take-home pay

Question 20

A quota can be best defined as:

A) another term for salary
B) earnings based on sales
C) a minimum amount of sales that is required before a commission is applicable
D) a formula which determines earnings

Question 21

A fixed rate of pay per unit of production is called differential piece rate pay.

Question 22

The standard overtime rate is:

A) the rate of pay for hours worked beyond 40 in a month
B) the amount of pay per hour based on a standard 40-hour work week
C) all of these are appropriate expressions of the standard overtime rate
D) 1 1 or 1.5 times the hourly rate 2

Question 23

If employees are paid biweekly, they receive a paycheck twice a week.

Question 24

Salary is most often stated as:

A) a certain amount of money paid each year
B) the difference between gross and net earnings
C) wages
D) based on an hourly rate of pay

Question 25

The sole purpose of the W-4 is to compute Federal Withholding Tax.

Question 26

An employee's overtime rate of pay is normally 1.2 times the regular hourly rate.

Question 27

Which of the following piecework rates rewards employees for additional production?

A) escalating piecework rate
B) straight piecework rate
C) differential piecework rate
D) both differential and escalating piecework rate

Question 28

Biweekly wages would be earned________ and paid .

A) by salary, twice a month or 24 times a year
B) by salary, every two weeks or 24 times a year
C) by the hour, twice a month or 26 times a year
D) by the hour, every two weeks or 26 times a year

Question 29

The percent of Social Security tax charged and the amount of salary subject to the tax can change from year to year.

Question 30

When pay is based upon the number of units produced, as in straight piece rate pay, workers have an incentive to work slowly.

Question 31

Total dollar sales is always the basis for an employee's commission.

Question 32

The employer pays all or part of the following taxes except:

A) SUTA
B) FUTA
C) Social Security tax and Medicare tax
D) federal income tax

Question 33

The wage bracket table is used to compute FUTA.

Question 34

An employee who is paid a base salary plus a commission on sales is said to be on an escalating piece rate.

Question 35

The federal tax withheld from a paycheck is based on:

A) the number of withholding allowances the person claims
B) the employee's gross earnings
C) the employee's tax-filing status
D) all of these are used to determine the amount of federal tax withheld

Question 36

The amount of federal income tax withheld from an individual's paycheck has little to do with the marital status.

Question 37

Employers are required to pay SUTA quarterly if the payment totals a certain amount.

Question 38

If employees are paid weekly, they will receive:

A) 12 paychecks a year
B) the number of paychecks vary each year
C) 52 paychecks a year
D) 26 paychecks a year

Question 39

FUTA tax must be paid:

A) six times per year
B) semiannually
C) at least once a year
D) quarterly

Question 40

A salaried employee is paid the same amount of money even though the hours worked may vary from pay period to pay period.

Question 41

-Derek Daniels earns $22,312.15 monthly, is married, and claims 3 withholding allowances. Find his net earnings for this pay period. FICA tax is 4.2% and Medicare tax is 1.45%.

A) $17,409.90
B) $21,051.51
C) $16,149.26
D) $25,953.76

Question 42

Social Security tax and Medicare tax are:

A) only paid by the employee
B) only paid by the employer
C) withheld from the employee's paycheck and matched by the employer
D) calculated based upon the W-4 form

Question 43

A withholding allowance, also called an exemption, is:

A) paid to local, state, or federal governments
B) a portion of gross earnings that is not subject to tax
C) based on the amount of one's earnings
D) also referred to as adjusted gross income

Question 44

To find the gross amount of a salaried employee's paycheck, multiply the hours worked times the rate of pay and adjust for overtime.

Question 45

Employees who are paid based on the number of units produced are paid a wage called commission.

Question 46

The employer is required to match the amount withheld from an employee's paycheck for Social Security tax and Medicare tax.

Question 47

A pay system based on a percent of total dollar sales made is called an hourly rate.

Question 48

The pay period intervals biweekly and semimonthly are similar in that the same number of pay periods occur in either method.

Question 49

Social Security tax is the same as withholding tax.

Question 50

Gross earnings are also referred to as:

A) the amount earned before deductions
B) take-home pay
C) gross margin
D) gross profit

Question 51

Which of the following items is not a deduction from an employee's paycheck?

A) FUTA tax
B) Social Security tax
C) Medicare tax
D) federal income tax

Question 52

Different commission rates for different levels of sales is the basis for straight commission earnings.

Question 53

An hourly rate or hourly wage is the amount paid for each unit produced.

Question 54

The difference between gross earnings and net earnings is referred to as deductions.

Question 55

The amount of taxes withheld from your paycheck can be reduced by increasing the number of exemptions claimed on form W-2.

Question 56

Federal income tax is usually the smallest deduction from an employee's paycheck.

Question 57

Differential piece rate refers to a system of pay based on hours worked.

Question 58

An employee is paid based on a sliding scale. As the number of items produced increases so does the rate per item. This is called a:

A) special overtime rate
B) production rate
C) piecework rate
D) differential piece rate

Question 59

An entomologist pays Fred $0.20 for each butterfly he brings in. Find Paul's gross earnings if he brings in 91 butterflies.

A) $19.80
B) $91.20
C) $16.60
D) $18.20

Question 60

If you receive paychecks 12 times a year at fixed intervals, you are probably being paid:

A) bimonthly
B) weekly
C) biweekly
D) monthly

Question 61

-Ann Preston is married, has a gross weekly salary of $543.74 (all of which is taxable), and the number of withholding allowances she claims is 1. Use the tax tables to find the federal tax withholding to be deducted from her weekly salary.

A) $30
B) $31
C) $33
D) $32

Question 62

Sybille worked 45 hours in one week. She earns $10.00 per hour with time and a half for overtime. Find her gross earnings for the week.

A) $100
B) $400
C) $450
D) $475

Question 63

-Neelima Zafar is married, has a gross weekly salary of $555.97 (all of which is taxable), and the number of withholding allowances she claims is 1. Use the tax tables to find the federal tax withholding to be deducted from her weekly salary.

A) $30
B) $33
C) $34
D) $31

Question 64

Jackie Stall receives 2% of sales plus $2.07 for each item she lists through her online listing service. In January she listed 229 items that sold for a total of $17,912. What were her gross earnings?

A) $474.03
B) $358.24
C) $832.27
D) $4056.43

Question 65

-Eric Yang earns $603.16 weekly, is married, and claims 3 withholding allowances. Find his net earnings for this pay period. FICA tax is 4.2% and Medicare tax is 1.45%.

A) $591.87
B) $580.37
C) $569.08
D) $546.29

Question 66

Yolanda, whose regular rate of pay is $12.90, with time and a half for overtime, worked 48.25 hours last week. Find her gross pay for the week.

A) $673.64
B) $622.43
C) $933.64
D) $675.64

Question 67

Juan earns a weekly salary of $820.00 and is nonexempt from FLSA. Last week he worked 53 hours. What are his gross earnings for the week?

A) $1279.25
B) $1160.25
C) $1219.75
D) $1281.25

Question 68

Stephen assembles and finishes wood products. He is paid $1.90 for a shelf, $0.96 for a picture frame, and $2.50 for a planter. One week he completed 45 shelves, 76 picture frames, and 39 planters. Find his gross earnings.

A) $259.56
B) $857.60
C) $255.96
D) $294.34

Question 69

Ellen earns a salary of $15,964 annually and is paid monthly. How much does she receive in monthly income?

A) $1596.40
B) $307.00
C) $665.17
D) $1330.33

Question 70

-Irene Farley earns a semimonthly salary of $7714.27. She has a $100 adjustment-to-income flexible benefits package, is married, and claims 4 withholding allowances. Find the federal tax withholding to be deducted from her semimonthly paycheck using the percentage method tables.

A) $3110.17
B) $1350.93
C) $1378.93
D) $1528.26

Question 71

-Robert Young earns a weekly salary of $603.16 with no adjustments to income. He is married and claims 3 withholding allowances. Find the federal tax withholding to be deducted from his weekly paycheck using the percentage method tables.

A) $38.39
B) $22.79
C) $44.72
D) $60.32

Question 72

-Henry Daniels earns $2709 biweekly. He is single and claims 3 withholding allowances. He saves 2% of his salary for retirement and pays $24.50 in nonexempt insurance premiums each pay period. What are his net earnings for each pay period?

A) $2871.55
B) $2630.32
C) $2236.03
D) $2082.97

Question 73

Holly, whose regular rate of pay is $12, with time and a half for overtime, worked 55 hours last week. Find her gross pay for the week.

A) $480.00
B) $750.00
C) $660.00
D) $990.00

Question 74

Naomi Haden earns a weekly salary of $3576.57 with no adjustments to income. She is married and claims 4 withholding allowances. Find the federal tax withholding to be deducted from her weekly paycheck using the percentage method tables.

A) $722.84
B) $1506.84
C) $640.99
D) $1424.99

Question 75

-Sun Chin earns a monthly salary of $6312.15 with no adjustments to income. She is single and claims 3 withholding allowances. Find the federal tax withholding to be deducted from her monthly paycheck using the percentage method tables.

A) $1983.69
B) $964.94
C) $1746.19
D) $1202.44

Question 76

-Joy Maxwell is married, has a gross weekly salary of $535.56 (all of which is taxable), and the number of withholding allowances she claims is 2. Use the tax tables to find the federal tax withholding to be deducted from her weekly salary.

A) $23
B) $21
C) $24
D) $25

Question 77

Last week, Jarrett assembled 79 items. Find his gross weekly earnings if he is paid at the following differential piece rate. $$\begin{array} { l l } 1 - 75 \text { items assembled } & \$ 0.75 \text { each } \\76 - 125 \text { items assembled } & \$ 1.50 \text { each } \\126 \text { or more items assembled } & \$ 2.00 \text { each }\end{array}$$

A) $62.25
B) $64.25
C) $118.50
D) $59.25

Question 78

-Kevin Mondale earns a monthly salary of $22,612.15. He has a $300 adjustment-to-income flexible benefits package, is married, and claims 4 withholding allowances. Find the federal tax withholding to be deducted from his monthly paycheck using the percentage method tables.

A) $4797.75
B) $4896.75
C) $5215.75
D) $11,000.43

Question 79

Rafael makes labels for a major distributor. He is paid $0.73 for each label and records the following number of completed labels: Monday, 74; Tuesday, 92; Wednesday, 119; Thursday, 111; Friday, 122. How much will he be paid for his work for the week?

A) $378.87
B) $378.14
C) $289.08
D) $377.41

Question 80

Go Green Recycling Center pays local children $0.40 for each pound of aluminum cans they bring in. If Sara brings in 12 pounds of cans, what are her gross earnings?

A) $4.80
B) $12.40
C) $6.00
D) $3.60