Deck 5: Employee Net Pay and Pay Methods

Question 1

A firm has headquarters in Indiana but has offices in California and Utah. For employee taxation purposes, it may choose which of those three states income
tax laws it wishes to use.

Answer 1

False

Question 2

The use of paycards as a means of transmitting employee pay began in the 1990s with over-the-road drivers out of a need to transmit funds reliably on payday.

Answer 2

True

Question 3

The regular Medicare tax deduction is 1.45% for employee and employer and must be paid by all employees.

Answer 3

True

Question 4

Which are steps in the net pay computation process? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a
Question mark will be automatically graded as incorrect.)

A) Compute taxes to be withheld.
B) Report fringe benefit balances.
C) Compute gross pay.
D) Update employee records.

Question 5

The wage-bracket of determining federal tax withholding yields more accurate amounts than the percentage method.

Question 6

What role does the employer play regarding an employee's federal withholding tax?

A) Collector and verifier
B) Verifier and reporter
C) Collector and depositor
D) Reporter and depositor

Question 7

Which of the following statements is/are true about Social Security tax deductions from gross pay? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box
For a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

A) The wage base is $132,900.
B) The tax is computed on all earnings.
C) The tax rate is 6.0%.
D) Section 125 deductions are not subject to Social Security tax.

Question 8

Which of the following is used in the determination of the amount of federal income tax to be withheld from an employee per pay period? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with
The question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

A) Date of birth
B) Period salary
C) Marital status
D) Prior year's tax return

Question 9

Federal income tax, Medicare tax, and Social Security tax amounts withheld from employee pay are computed based on gross pay, less pre-tax deductions,
and deducted to arrive at net pay.

Question 10

Computation of net pay involves deducting mandatory and voluntary deductions from gross pay.

Question 11

Which payroll-specific tool is used to facilitate computation of net pay?

A) Payroll Register
B) Form I-9
C) Employee Information Form
D) Supervisor Payroll Report

Question 12

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?

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

Question 13

Which of the following statements is/are true about Medicare tax? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes
Left with a question mark will be automatically graded as incorrect.)

A) Additional Medicare tax is withheld for employees who earn more than $150,000 annually.
B) Employers match all Medicare taxes withheld.
C) The Medicare tax rate is 1.45%.
D) All employee earnings less pre-tax deductions are subject to Medicare tax.

Question 14

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

Question 15

How are income taxes and FICA taxes applied to gross-up pay? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left
With a question mark will be automatically graded as incorrect.)

A) Subtract the sum of the income tax rate and FICA tax rate from 100 percent.
B) Compute the sum of the income tax and FICA tax rates.
C) Divide the net pay by the net tax rate.
D) Multiply the gross pay by the sum of the income tax and FICA tax rates.

Question 16

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

Question 17

Social Security tax has a wage base, which is the minimum amount an employee must earn before they will have the Social Security tax deduction.

Question 18

Which of the following federal withholding allowance scenarios will have the highest income tax?

A) Single, 5 allowances
B) Married, 0 allowances
C) Married, 3 allowances
D) Single, 1 allowance

Question 19

Which of the following states do not have state income tax deducted from employee pay? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a
Wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

A) Montana
B) New Hampshire
C) Maine
D) Alaska

Question 20

The amount of federal income tax decreases as the number of allowances increases.

Question 21

Trish earned $1,734.90 during the most recent semimonthly pay period. She is married and has 3 withholding allowances and has no pre-tax deductions. Based on the following table, how much should be withheld from her gross pay for Federal income tax?
Wage Bracket Method Tables for Income Tax Withholding
MARRIED Persons-SEMIMONTHLY Payroll Period
(For Wages Paid through December 2019)
And the wages are And the number of withholding allowances claimed is-
At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10
$ 1,602 $ 1,622 $ 118 $ 97 $ 77 $ 60 $ 42 $ 25 $ 7 $ 0 $ 0 $ 0 $ 0
1,622 1,642 121 100 79 62 44 27 9 0 0 0 0
1,642 1,662 123 102 81 64 46 29 11 0 0 0 0
1,662 1,682 125 104 83 66 48 31 13 0 0 0 0
1,682 1,702 128 107 86 68 50 33 15 0 0 0 0
1,702 1,722 130 109 88 70 52 35 17 0 0 0 0
1,722 1,742 133 112 91 72 54 37 19 2 0 0 0
1,742 1,762 135 114 93 74 56 39 21 4 0 0 0
1,762 1,782 137 116 95 76 58 41 23 6 0 0 0
1,782 1,802 140 119 98 78 60 43 25 8 0 0 0
1,802 1,822 142 121 100 80 62 45 27 10 0 0 0
1,822 1,842 145 124 103 82 64 47 29 12 0 0 0
1,842 1,862 147 126 105 84 66 49 31 14 0 0 0
1,862 1,882 149 128 107 86 68 51 33 16 0 0 0
1,882 1,902 152 131 110 89 70 53 35 18 0 0 0
1,902 1,922 154 133 112 91 72 55 37 20 2 0 0
1,922 1,942 157 136 115 94 74 57 39 22 4 0 0
1,942 1,962 159 138 117 96 76 59 41 24 6 0 0
1,962 1,982 161 140 119 98 78 61 43 26 8 0 0
1,982 2,002 164 143 122 101 80 63 45 28 10 0 0
2,002 2,022 166 145 124 103 82 65 47 30 12 0 0
2,022 2,042 169 148 127 106 85 67 49 32 14 0 0
2,042 2,062 171 150 129 108 87 69 51 34 16 0 0
2,062 2,082 173 152 131 110 89 71 53 36 18 1 0
2,082 2,102 176 155 134 113 92 73 55 38 20 3 0
2,102 2,122 178 157 136 115 94 75 57 40 22 5 0
2,122 2,142 181 160 139 118 97 77 59 42 24 7 0
2,142 2,162 183 162 141 120 99 79 61 44 26 9 0
2,162 2,182 185 164 143 122 101 81 63 46 28 11 0
2,182 2,202 188 167 146 125 104 83 65 48 30 13 0
2,202 2,222 190 169 148 127 106 85 67 50 32 15 0
2,222 2,242 193 172 151 130 109 88 69 52 34 17 0
2,242 2,262 195 174 153 132 111 90 71 54 36 19 1
2,262 2,282 197 176 155 134 113 92 73 56 38 21 3
2,282 2,302 200 179 158 137 116 95 75 58 40 23 5
2,302 2,322 202 181 160 139 118 97 77 60 42 25 7
2,322 2,342 205 184 163 142 121 100 79 62 44 27 9
2,342 2,362 207 186 165 144 123 102 81 64 46 29 11
2,362 2,382 209 188 167 146 125 104 83 66 48 31 13
2,382 2,402 212 191 170 149 128 107 86 68 50 33 15
2,402 2,422 214 193 172 151 130 109 88 70 52 35 17
2,422 2,442 217 196 175 154 133 112 91 72 54 37 19
2,442 2,462 219 198 177 156 135 114 93 74 56 39 21
2,462 2,482 221 200 179 158 137 116 95 76 58 41 23
2,482 2,502 224 203 182 161 140 119 98 78 60 43 25
2,502 2,522 226 205 184 163 142 121 100 80 62 45 27
2,522 2,542 229 208 187 166 145 124 103 82 64 47 29
2,542 2,562 231 210 189 168 147 126 105 84 66 49 31
2,562 2,582 233 212 191 170 149 128 107 86 68 51 33
2,582 2,602 236 215 194 173 152 131 110 89 70 53 35
2,602 2,622 238 217 196 175 154 133 112 91 72 55 37
2,622 2,642 241 220 199 178 157 136 115 94 74 57 39
2,642 2,662 243 222 201 180 159 138 117 96 76 59 41
2,662 2,682 245 224 203 182 161 140 119 98 78 61 43

A) $72.00
B) $93.00
C) $76.00
D) $95.00

Question 22

Julian is a part-time nonexempt employee in Nashville, Tennessee, who earns $21.50 per hour. During the last biweekly pay period he worked 45 hours, 5 of which are considered overtime. He is single with one withholding allowance (use the wage-bracket table). What is his net pay? (Do not round intermediate
Calculations. Round your final answer to 2 decimal places.)
Wage Bracket Method Tables for Income Tax Withholding
SINGLE Persons-BIWEEKLY Payroll Period
(For Wages Paid through December 2019)
And the wages are And the number of withholding allowances claimed is-
At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10
$ 809 $ 829 $ 73 $ 54 $ 35 $ 19 $ 3 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
829 849 76 56 37 21 5 0 0 0 0 0 0
849 869 78 59 39 23 7 0 0 0 0 0 0
869 889 80 61 42 25 9 0 0 0 0 0 0
889 909 83 63 44 27 11 0 0 0 0 0 0
909 929 85 66 47 29 13 0 0 0 0 0 0
929 949 88 68 49 31 15 0 0 0 0 0 0
949 969 90 71 51 33 17 1 0 0 0 0 0
969 989 92 73 54 35 19 3 0 0 0 0 0
989 1,009 95 75 56 37 21 5 0 0 0 0 0
1,009 1,029 97 78 59 39 23 7 0 0 0 0 0
1,029 1,049 100 80 61 42 25 9 0 0 0 0 0
1,049 1,069 102 83 63 44 27 11 0 0 0 0 0
1,069 1,089 104 85 66 46 29 13 0 0 0 0 0
1,089 1,109 107 87 68 49 31 15 0 0 0 0 0
1,109 1,129 109 90 71 51 33 17 0 0 0 0 0
1,129 1,149 112 92 73 54 35 19 2 0 0 0 0
1,149 1,169 114 95 75 56 37 21 4 0 0 0 0
1,169 1,189 116 97 78 58 39 23 6 0 0 0 0
1,189 1,209 119 99 80 61 41 25 8 0 0 0 0
1,209 1,229 121 102 83 63 44 27 10 0 0 0 0
1,229 1,249 124 104 85 66 46 29 12 0 0 0 0
1,249 1,269 126 107 87 68 49 31 14 0 0 0 0
1,269 1,289 128 109 90 70 51 33 16 0 0 0 0
1,289 1,309 131 111 92 73 53 35 18 2 0 0 0
1,309 1,329 133 114 95 75 56 37 20 4 0 0 0
1,329 1,349 136 116 97 78 58 39 22 6 0 0 0
1,349 1,369 138 119 99 80 61 41 24 8 0 0 0
1,369 1,389 140 121 102 82 63 44 26 10 0 0 0
1,389 1,409 143 123 104 85 65 46 28 12 0 0 0
1,409 1,429 145 126 107 87 68 48 30 14 0 0 0
1,429 1,449 148 128 109 90 70 51 32 16 0 0 0
1,449 1,469 150 131 111 92 73 53 34 18 2 0 0
1,469 1,489 152 133 114 94 75 56 36 20 4 0 0
1,489 1,509 155 135 116 97 77 58 39 22 6 0 0
1,509 1,529 157 138 119 99 80 60 41 24 8 0 0
1,529 1,549 160 140 121 102 82 63 43 26 10 0 0
1,549 1,569 162 143 123 104 85 65 46 28 12 0 0
1,569 1,589 164 145 126 106 87 68 48 30 14 0 0
1,589 1,609 167 147 128 109 89 70 51 32 16 0 0
1,609 1,629 169 150 131 111 92 72 53 34 18 2 0
1,629 1,649 172 152 133 114 94 75 55 36 20 4 0
1,649 1,669 174 155 135 116 97 77 58 38 22 6 0
1,669 1,689 178 157 138 118 99 80 60 41 24 8 0
1,689 1,709 182 159 140 121 101 82 63 43 26 10 0
1,709 1,729 187 162 143 123 104 84 65 46 28 12 0
1,729 1,749 191 164 145 126 106 87 67 48 30 14 0
1,749 1,769 196 167 147 128 109 89 70 50 32 16 0
1,769 1,789 200 169 150 130 111 92 72 53 34 18 2
1,789 1,809 204 171 152 133 113 94 75 55 36 20 4
1,809 1,829 209 174 155 135 116 96 77 58 38 22 6
1,829 1,849 213 178 157 138 118 99 79 60 41 24 8
1,849 1,869 218 182 159 140 121 101 82 62 43 26 10
1,869 1,889 222 186 162 142 123 104 84 65 45 28 12
1,889 1,909 226 191 164 145 125 106 87 67 48 30 14
1,909 1,929 231 195 167 147 128 108 89 70 50 32 16
1,929 1,949 235 200 169 150 130 111 91 72 53 34 18
1,949 1,969 240 204 171 152 133 113 94 74 55 36 20
1,969 1,989 244 208 174 154 135 116 96 77 57 38 22
1,989 2,009 248 213 177 157 137 118 99 79 60 40 24
2,009 2,029 253 217 182 159 140 120 101 82 62 43 26
2,029 2,049 257 222 186 162 142 123 103 84 65 45 28
2,049 2,069 262 226 190 164 145 125 106 86 67 48 30
2,069 2,089 266 230 195 166 147 128 108 89 69 50 32
2,089 2,109 270 235 199 169 149 130 111 91 72 52 34

A) $865.11
B) $825.99
C) $797.18
D)

Question 23

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?
Wage Bracket Method Tables for Income Tax Withholding
SINGLE Persons-BIWEEKLY Payroll Period
(For Wages Paid through December 2019)
And the wages are And the number of withholding allowances claimed is-
At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10
$ 809 $ 829 $ 73 $ 54 $ 35 $ 19 $ 3 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
829 849 76 56 37 21 5 0 0 0 0 0 0
849 869 78 59 39 23 7 0 0 0 0 0 0
869 889 80 61 42 25 9 0 0 0 0 0 0
889 909 83 63 44 27 11 0 0 0 0 0 0
909 929 85 66 47 29 13 0 0 0 0 0 0
929 949 88 68 49 31 15 0 0 0 0 0 0
949 969 90 71 51 33 17 1 0 0 0 0 0
969 989 92 73 54 35 19 3 0 0 0 0 0
989 1,009 95 75 56 37 21 5 0 0 0 0 0
1,009 1,029 97 78 59 39 23 7 0 0 0 0 0
1,029 1,049 100 80 61 42 25 9 0 0 0 0 0
1,049 1,069 102 83 63 44 27 11 0 0 0 0 0
1,069 1,089 104 85 66 46 29 13 0 0 0 0 0
1,089 1,109 107 87 68 49 31 15 0 0 0 0 0
1,109 1,129 109 90 71 51 33 17 0 0 0 0 0
1,129 1,149 112 92 73 54 35 19 2 0 0 0 0
1,149 1,169 114 95 75 56 37 21 4 0 0 0 0
1,169 1,189 116 97 78 58 39 23 6 0 0 0 0
1,189 1,209 119 99 80 61 41 25 8 0 0 0 0
1,209 1,229 121 102 83 63 44 27 10 0 0 0 0
1,229 1,249 124 104 85 66 46 29 12 0 0 0 0
1,249 1,269 126 107 87 68 49 31 14 0 0 0 0
1,269 1,289 128 109 90 70 51 33 16 0 0 0 0
1,289 1,309 131 111 92 73 53 35 18 2 0 0 0
1,309 1,329 133 114 95 75 56 37 20 4 0 0 0
1,329 1,349 136 116 97 78 58 39 22 6 0 0 0
1,349 1,369 138 119 99 80 61 41 24 8 0 0 0
1,369 1,389 140 121 102 82 63 44 26 10 0 0 0
1,389 1,409 143 123 104 85 65 46 28 12 0 0 0
1,409 1,429 145 126 107 87 68 48 30 14 0 0 0
1,429 1,449 148 128 109 90 70 51 32 16 0 0 0
1,449 1,469 150 131 111 92 73 53 34 18 2 0 0
1,469 1,489 152 133 114 94 75 56 36 20 4 0 0
1,489 1,509 155 135 116 97 77 58 39 22 6 0 0
1,509 1,529 157 138 119 99 80 60 41 24 8 0 0
1,529 1,549 160 140 121 102 82 63 43 26 10 0 0
1,549 1,569 162 143 123 104 85 65 46 28 12 0 0
1,569 1,589 164 145 126 106 87 68 48 30 14 0 0
1,589 1,609 167 147 128 109 89 70 51 32 16 0 0
1,609 1,629 169 150 131 111 92 72 53 34 18 2 0
1,629 1,649 172 152 133 114 94 75 55 36 20 4 0
1,649 1,669 174 155 135 116 97 77 58 38 22 6 0
1,669 1,689 178 157 138 118 99 80 60 41 24 8 0
1,689 1,709 182 159 140 121 101 82 63 43 26 10 0
1,709 1,729 187 162 143 123 104 84 65 46 28 12 0
1,729 1,749 191 164 145 126 106 87 67 48 30 14 0
1,749 1,769 196 167 147 128 109 89 70 50 32 16 0
1,769 1,789 200 169 150 130 111 92 72 53 34 18 2
1,789 1,809 204 171 152 133 113 94 75 55 36 20 4
1,809 1,829 209 174 155 135 116 96 77 58 38 22 6
1,829 1,849 213 178 157 138 118 99 79 60 41 24 8
1,849 1,869 218 182 159 140 121 101 82 62 43 26 10
1,869 1,889 222 186 162 142 123 104 84 65 45 28 12
1,889 1,909 226 191 164 145 125 106 87 67 48 30 14
1,909 1,929 231 195 167 147 128 108 89 70 50 32 16
1,929 1,949 235 200 169 150 130 111 91 72 53 34 18
1,949 1,969 240 204 171 152 133 113 94 74 55 36 20
1,969 1,989 244 208 174 154 135 116 96 77 57 38 22
1,989 2,009 248 213 177 157 137 118 99 79 60 40 24
2,009 2,029 253 217 182 159 140 120 101 82 62 43 26
2,029 2,049 257 222 186 162 142 123 103 84 65 45 28
2,049 2,069 262 226 190 164 145 125 106 86 67 48 30
2,069 2,089 266 230 195 166 147 128 108 89 69 50 32
2,089 2,109 270 235 199 169 149 130 111 91 72 52 34

A) $106.00
B) $104.00
C) $87.00
D) $85.00

Question 24

Garnishments may include deductions from employee wages on a post-tax basis for items such as: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box
For a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

A) Union Dues.
B) Charitable contributions.
C) Consumer Credit liens.
D) Child Support payments.

Question 25

Wyatt is a full-time exempt music engineer who earns $150,000 annually and is paid semimonthly. As of November 15, his year-to-date gross pay was $131,250. How much will be withheld for FICA taxes for the November 30 pay date? (Social Security maximum wage is $132,900. Do not round intermediate calculations.
Round your final answer to 2 decimal places.)

A) $192.93
B) $224.83
C) $264.20
D) $175.58

Question 26

Sammy contributes 4% of her salary to a 401(k) plan, $50 per pay period to a charitable contribution, $140 per pay period to union dues, and $50 per pay period to a section 125 qualified insurance plan offered by her employer. Which contributions must be taken on a post-tax basis? (You may select more
Than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the
Question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

A) Section 125 insurance plan
B) 401(k) contribution
C) Charitable contribution
D) Union dues

Question 27

Disposable income is defined as:

A) An employee's pay after legally required deductions have been withheld.
B) An employee's net pay less living expenses like rent and utilities.
C) An employee's gross pay less Identify Pre-Tax Deductions.
D) An employee's taxable income less Understand Post-Tax Deductions.

Question 28

Tierney is a full-time nonexempt salaried employee who earns $990 per biweekly pay period. She is single with 1 withholding allowance and both lives and works in Bowling Green, Kentucky. Assuming that she had no overtime, what is the total of her Federal and state taxes for a pay period? (Use the wage-bracket
Tables. Kentucky state income rate is 5.00%. Round final answer to 2 decimal places.)
Wage Bracket Method Tables for Income Tax Withholding
SINGLE Persons-BIWEEKLY Payroll Period
(For Wages Paid through December 2019)
And the wages are And the number of withholding allowances claimed is-
At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10
$ 809 $ 829 $ 73 $ 54 $ 35 $ 19 $ 3 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
829 849 76 56 37 21 5 0 0 0 0 0 0
849 869 78 59 39 23 7 0 0 0 0 0 0
869 889 80 61 42 25 9 0 0 0 0 0 0
889 909 83 63 44 27 11 0 0 0 0 0 0
909 929 85 66 47 29 13 0 0 0 0 0 0
929 949 88 68 49 31 15 0 0 0 0 0 0
949 969 90 71 51 33 17 1 0 0 0 0 0
969 989 92 73 54 35 19 3 0 0 0 0 0
989 1,009 95 75 56 37 21 5 0 0 0 0 0
1,009 1,029 97 78 59 39 23 7 0 0 0 0 0
1,029 1,049 100 80 61 42 25 9 0 0 0 0 0
1,049 1,069 102 83 63 44 27 11 0 0 0 0 0
1,069 1,089 104 85 66 46 29 13 0 0 0 0 0
1,089 1,109 107 87 68 49 31 15 0 0 0 0 0
1,109 1,129 109 90 71 51 33 17 0 0 0 0 0
1,129 1,149 112 92 73 54 35 19 2 0 0 0 0
1,149 1,169 114 95 75 56 37 21 4 0 0 0 0
1,169 1,189 116 97 78 58 39 23 6 0 0 0 0
1,189 1,209 119 99 80 61 41 25 8 0 0 0 0
1,209 1,229 121 102 83 63 44 27 10 0 0 0 0
1,229 1,249 124 104 85 66 46 29 12 0 0 0 0
1,249 1,269 126 107 87 68 49 31 14 0 0 0 0
1,269 1,289 128 109 90 70 51 33 16 0 0 0 0
1,289 1,309 131 111 92 73 53 35 18 2 0 0 0
1,309 1,329 133 114 95 75 56 37 20 4 0 0 0
1,329 1,349 136 116 97 78 58 39 22 6 0 0 0
1,349 1,369 138 119 99 80 61 41 24 8 0 0 0
1,369 1,389 140 121 102 82 63 44 26 10 0 0 0
1,389 1,409 143 123 104 85 65 46 28 12 0 0 0
1,409 1,429 145 126 107 87 68 48 30 14 0 0 0
1,429 1,449 148 128 109 90 70 51 32 16 0 0 0
1,449 1,469 150 131 111 92 73 53 34 18 2 0 0
1,469 1,489 152 133 114 94 75 56 36 20 4 0 0
1,489 1,509 155 135 116 97 77 58 39 22 6 0 0
1,509 1,529 157 138 119 99 80 60 41 24 8 0 0
1,529 1,549 160 140 121 102 82 63 43 26 10 0 0
1,549 1,569 162 143 123 104 85 65 46 28 12 0 0
1,569 1,589 164 145 126 106 87 68 48 30 14 0 0
1,589 1,609 167 147 128 109 89 70 51 32 16 0 0
1,609 1,629 169 150 131 111 92 72 53 34 18 2 0
1,629 1,649 172 152 133 114 94 75 55 36 20 4 0
1,649 1,669 174 155 135 116 97 77 58 38 22 6 0
1,669 1,689 178 157 138 118 99 80 60 41 24 8 0
1,689 1,709 182 159 140 121 101 82 63 43 26 10 0
1,709 1,729 187 162 143 123 104 84 65 46 28 12 0
1,729 1,749 191 164 145 126 106 87 67 48 30 14 0
1,749 1,769 196 167 147 128 109 89 70 50 32 16 0
1,769 1,789 200 169 150 130 111 92 72 53 34 18 2
1,789 1,809 204 171 152 133 113 94 75 55 36 20 4
1,809 1,829 209 174 155 135 116 96 77 58 38 22 6
1,829 1,849 213 178 157 138 118 99 79 60 41 24 8
1,849 1,869 218 182 159 140 121 101 82 62 43 26 10
1,869 1,889 222 186 162 142 123 104 84 65 45 28 12
1,889 1,909 226 191 164 145 125 106 87 67 48 30 14
1,909 1,929 231 195 167 147 128 108 89 70 50 32 16
1,929 1,949 235 200 169 150 130 111 91 72 53 34 18
1,949 1,969 240 204 171 152 133 113 94 74 55 36 20
1,969 1,989 244 208 174 154 135 116 96 77 57 38 22
1,989 2,009 248 213 177 157 137 118 99 79 60 40 24
2,009 2,029 253 217 182 159 140 120 101 82 62 43 26
2,029 2,049 257 222 186 162 142 123 103 84 65 45 28
2,049 2,069 262 226 190 164 145 125 106 86 67 48 30
2,069 2,089 266 230 195 166 147 128 108 89 69 50 32
2,089 2,109 270 235 199 169 149 130 111 91 72 52 34

A) $128.25
B) $124.50
C) $120.78
D)

Question 29

Steve is a full-time exempt employee at a local electricity co-operative. He earns an annual salary of $43,325 and is paid biweekly. What is his Social Security tax deduction for each pay period? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

A) $98.67
B) $106.34
C) $103.31
D) $123.95

Question 30

Natalia is a full-time exempt employee who earns $215,000 annually, paid monthly. Her year-to-date pay as of November 30 is $197,083.33. How much will be withheld from Natalia for FICA taxes for the December 31 pay date? (Social Security maximum wage is $132,900. Do not round intermediate calculations. Round
Your final answer to 2 decimal places.)

A) $1,370.63
B) $292.04
C) $421.04
D) $394.79

Question 31

Why might an employee elect to have additional federal income tax withheld? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong
Answer. Any boxes left with a question mark will be automatically graded as incorrect.)

A) The employee wishes to reduce income tax liability.
B) The employee has more than one job.
C) The employee's spouse is employed.
D) The employee wants to satisfy prior years' tax obligations.

Question 32

Warren is a married employee with six withholding allowances. During the most recent biweekly pay period, he earned $9,450.00. Using the percentage method, compute Warren's federal income tax. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Table 5. Percentage Method-2019 Amount for one Withholding Allowance
Payroll Period One Withholding
Allowance
Weekly $80.80
Biweekly 161.50
Semimonthly 175.00
Monthly 350.00
Quarterly 1,050.00
Semiannually 2,100.00
Annually 4,200.00
Daily or miscellaneous (each day of the payroll period) 16.20
TABLE 2-BIWEEKLY Payroll Period
(a) SINGLE person (including head of household)- (b) MARRIED person-
If the amount of wages (after If the amount of wages (after
Subtracting withholding subtracting withholding
Allowances) is: The amount of income tax to withhold is: allowances) is: The amount of income tax to withhold is
Not over $142...... $0 Not over $444...... $0
Over- But not over- of excess over- Over- But not over- of excess ov
$ 146 -$ 519 $ 0.00 plus 10% -$ 146 $ 454 -$ 1,200 $ 0.00 plus 10%
$ 519 -$ 1,664 $ 37.30 plus 12% -$ 519 $ 1,200 -$ 3,490 $ 74.60 plus 12%
$ 1,664 -$ 3,385 $ 174.70 plus 22% -$ 1,664 $ 3,490 -$ 6,931 $ 349.40 plus 22%
$ 3,385 -$ 6,328 $ 553.32 plus 24% -$ 3,385 $ 6,931 -$ 12,817 $ 1,106.42 plus 24%
$ 6,328 -$ 7,996 $ 1,259.264 plus 32% -$ 6,328 $ 12,817 -$ 16,154 $ 2,519.06 plus 32%
$ 7,996 -$ 19,773 $ 1,793.40 plus 35% -$ 7,996 $ 16,154 -$ 24,006 $ 3,586.90 plus 35%
$ 19,773 $ 5,915.35 plus 37% -$ 19,773 $ 24,006 $ 6,335.10 plus 37%

A) $1,490.15
B) $1,512.91
C) $1,456.90
D) $1,478.42

Question 33

Paolo is a part-time security guard for a local facility. He earned $298.50 during the most recent weekly pay period and has earned $5,296.00 year-to-date. He is married with four withholding allowances. What is his Medicare tax liability for the pay period?

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

Question 34

Adam is a part-time employee who earned $495.00 during the most recent pay period. He is married with two withholding allowances. Prior to this pay period, his year-to-date pay is $6,492.39. How much should be withheld from Adam's gross pay for Social Security tax?

A) $30.69
B) $28.46
C) $40.02
D) $37.92

Question 35

Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $45,000 and is paid semimonthly. He is married with 3 withholding allowances. His state income tax is 3.23%, and Clark County income tax is $33.75 per pay period. What is the total of FICA, Federal, state, and local deductions
Per pay period, assuming no Pre-Tax Deductions? (Use the wage-bracket table to determine Federal taxes. Do not round intermediate calculations. Round your
final answer to 2 decimal places.)
Wage Bracket Method Tables for Income Tax Withholding
MARRIED Persons-SEMIMONTHLY Payroll Period
(For Wages Paid through December 2019)
And the wages are And the number of withholding allowances claimed is-
At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10
$ 1,602 $ 1,622 $ 118 $ 97 $ 77 $ 60 $ 42 $ 25 $ 7 $ 0 $ 0 $ 0 $ 0
1,622 1,642 121 100 79 62 44 27 9 0 0 0 0
1,642 1,662 123 102 81 64 46 29 11 0 0 0 0
1,662 1,682 125 104 83 66 48 31 13 0 0 0 0
1,682 1,702 128 107 86 68 50 33 15 0 0 0 0
1,702 1,722 130 109 88 70 52 35 17 0 0 0 0
1,722 1,742 133 112 91 72 54 37 19 2 0 0 0
1,742 1,762 135 114 93 74 56 39 21 4 0 0 0
1,762 1,782 137 116 95 76 58 41 23 6 0 0 0
1,782 1,802 140 119 98 78 60 43 25 8 0 0 0
1,802 1,822 142 121 100 80 62 45 27 10 0 0 0
1,822 1,842 145 124 103 82 64 47 29 12 0 0 0
1,842 1,862 147 126 105 84 66 49 31 14 0 0 0
1,862 1,882 149 128 107 86 68 51 33 16 0 0 0
1,882 1,902 152 131 110 89 70 53 35 18 0 0 0
1,902 1,922 154 133 112 91 72 55 37 20 2 0 0
1,922 1,942 157 136 115 94 74 57 39 22 4 0 0
1,942 1,962 159 138 117 96 76 59 41 24 6 0 0
1,962 1,982 161 140 119 98 78 61 43 26 8 0 0
1,982 2,002 164 143 122 101 80 63 45 28 10 0 0
2,002 2,022 166 145 124 103 82 65 47 30 12 0 0
2,022 2,042 169 148 127 106 85 67 49 32 14 0 0
2,042 2,062 171 150 129 108 87 69 51 34 16 0 0
2,062 2,082 173 152 131 110 89 71 53 36 18 1 0
2,082 2,102 176 155 134 113 92 73 55 38 20 3 0
2,102 2,122 178 157 136 115 94 75 57 40 22 5 0
2,122 2,142 181 160 139 118 97 77 59 42 24 7 0
2,142 2,162 183 162 141 120 99 79 61 44 26 9 0
2,162 2,182 185 164 143 122 101 81 63 46 28 11 0
2,182 2,202 188 167 146 125 104 83 65 48 30 13 0
2,202 2,222 190 169 148 127 106 85 67 50 32 15 0
2,222 2,242 193 172 151 130 109 88 69 52 34 17 0
2,242 2,262 195 174 153 132 111 90 71 54 36 19 1
2,262 2,282 197 176 155 134 113 92 73 56 38 21 3
2,282 2,302 200 179 158 137 116 95 75 58 40 23 5
2,302 2,322 202 181 160 139 118 97 77 60 42 25 7
2,322 2,342 205 184 163 142 121 100 79 62 44 27 9
2,342 2,362 207 186 165 144 123 102 81 64 46 29 11
2,362 2,382 209 188 167 146 125 104 83 66 48 31 13
2,382 2,402 212 191 170 149 128 107 86 68 50 33 15
2,402 2,422 214 193 172 151 130 109 88 70 52 35 17
2,422 2,442 217 196 175 154 133 112 91 72 54 37 19
2,442 2,462 219 198 177 156 135 114 93 74 56 39 21
2,462 2,482 221 200 179 158 137 116 95 76 58 41 23
2,482 2,502 224 203 182 161 140 119 98 78 60 43 25
2,502 2,522 226 205 184 163 142 121 100 80 62 45 27
2,522 2,542 229 208 187 166 145 124 103 82 64 47 29
2,542 2,562 231 210 189 168 147 126 105 84 66 49 31
2,562 2,582 233 212 191 170 149 128 107 86 68 51 33
2,582 2,602 236 215 194 173 152 131 110 89 70 53 35
2,602 2,622 238 217 196 175 154 133 112 91 72 55 37
2,622 2,642 241 220 199 178 157 136 115 94 74 57 39
2,642 2,662 243 222 201 180 159 138 117 96 76 59 41
2,662 2,682 245 224 203 182 161 140 119 98 78 61 43

A) $303.36
B) $306.45
C) $318.13
D) $323.75

Question 36

Melody is a full-time employee in Sioux City, South Dakota, who earns $3,600 per month and is paid semimonthly. She is married with 1 withholding allowance (use the wage-bracket tables). She has a qualified health insurance deduction of $50 per pay period and contributes 3% to her 401(k), both of which are pre-tax
Deductions. What is her net pay? (Round your intermediate calculations and final answer to 2 decimal places.)
Wage Bracket Method Tables for Income Tax Withholding
MARRIED Persons-SEMIMONTHLY Payroll Period
(For Wages Paid through December 2019)
And the wages are And the number of withholding allowances claimed is-
At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10
$ 1,602 $ 1,622 $ 118 $ 97 $ 77 $ 60 $ 42 $ 25 $ 7 $ 0 $ 0 $ 0 $ 0
1,622 1,642 121 100 79 62 44 27 9 0 0 0 0
1,642 1,662 123 102 81 64 46 29 11 0 0 0 0
1,662 1,682 125 104 83 66 48 31 13 0 0 0 0
1,682 1,702 128 107 86 68 50 33 15 0 0 0 0
1,702 1,722 130 109 88 70 52 35 17 0 0 0 0
1,722 1,742 133 112 91 72 54 37 19 2 0 0 0
1,742 1,762 135 114 93 74 56 39 21 4 0 0 0
1,762 1,782 137 116 95 76 58 41 23 6 0 0 0
1,782 1,802 140 119 98 78 60 43 25 8 0 0 0
1,802 1,822 142 121 100 80 62 45 27 10 0 0 0
1,822 1,842 145 124 103 82 64 47 29 12 0 0 0
1,842 1,862 147 126 105 84 66 49 31 14 0 0 0
1,862 1,882 149 128 107 86 68 51 33 16 0 0 0
1,882 1,902 152 131 110 89 70 53 35 18 0 0 0
1,902 1,922 154 133 112 91 72 55 37 20 2 0 0
1,922 1,942 157 136 115 94 74 57 39 22 4 0 0
1,942 1,962 159 138 117 96 76 59 41 24 6 0 0
1,962 1,982 161 140 119 98 78 61 43 26 8 0 0
1,982 2,002 164 143 122 101 80 63 45 28 10 0 0
2,002 2,022 166 145 124 103 82 65 47 30 12 0 0
2,022 2,042 169 148 127 106 85 67 49 32 14 0 0
2,042 2,062 171 150 129 108 87 69 51 34 16 0 0
2,062 2,082 173 152 131 110 89 71 53 36 18 1 0
2,082 2,102 176 155 134 113 92 73 55 38 20 3 0
2,102 2,122 178 157 136 115 94 75 57 40 22 5 0
2,122 2,142 181 160 139 118 97 77 59 42 24 7 0
2,142 2,162 183 162 141 120 99 79 61 44 26 9 0
2,162 2,182 185 164 143 122 101 81 63 46 28 11 0
2,182 2,202 188 167 146 125 104 83 65 48 30 13 0
2,202 2,222 190 169 148 127 106 85 67 50 32 15 0
2,222 2,242 193 172 151 130 109 88 69 52 34 17 0
2,242 2,262 195 174 153 132 111 90 71 54 36 19 1
2,262 2,282 197 176 155 134 113 92 73 56 38 21 3
2,282 2,302 200 179 158 137 116 95 75 58 40 23 5
2,302 2,322 202 181 160 139 118 97 77 60 42 25 7
2,322 2,342 205 184 163 142 121 100 79 62 44 27 9
2,342 2,362 207 186 165 144 123 102 81 64 46 29 11
2,362 2,382 209 188 167 146 125 104 83 66 48 31 13
2,382 2,402 212 191 170 149 128 107 86 68 50 33 15
2,402 2,422 214 193 172 151 130 109 88 70 52 35 17
2,422 2,442 217 196 175 154 133 112 91 72 54 37 19
2,442 2,462 219 198 177 156 135 114 93 74 56 39 21
2,462 2,482 221 200 179 158 137 116 95 76 58 41 23
2,482 2,502 224 203 182 161 140 119 98 78 60 43 25
2,502 2,522 226 205 184 163 142 121 100 80 62 45 27
2,522 2,542 229 208 187 166 145 124 103 82 64 47 29
2,542 2,562 231 210 189 168 147 126 105 84 66 49 31
2,562 2,582 233 212 191 170 149 128 107 86 68 51 33
2,582 2,602 236 215 194 173 152 131 110 89 70 53 35
2,602 2,622 238 217 196 175 154 133 112 91 72 55 37
2,622 2,642 241 220 199 178 157 136 115 94 74 57 39
2,642 2,662 243 222 201 180 159 138 117 96 76 59 41
2,662 2,682 245 224 203 182 161 140 119 98 78 61 43

A) $1,455.13
B) $1,696.00
C) $1,524.27
D) $1,394.87

Question 37

Olga earned $1,558.00 during the most recent weekly pay period. She is single with 2 withholding allowances and no pre-tax deductions. Using the percentage method, compute Olga's federal income tax for the period. (Do not round intermediate calculations. Round final answer to 2 decimal places.)
Table 5. Percentage Method-2019 Amount for one Withholding Allowance
Payroll Period One Withholding
Allowance
Weekly $80.80
Biweekly 161.50
Semimonthly 175.00
Monthly 350.00
Quarterly 1,050.00
Semiannually 2,100.00
Annually 4,200.00
Daily or miscellaneous (each day of the payroll period) 16.20
Percentage Method Tables for Income Tax Withholding
(For Wages Paid in 2019)
TABLE 1-WEEKLY Payroll Period
(a) SINGLE person (including head of household)− (b) MARRIED person−
If the amount of wages (after If the amount of wages (after
Subtracting withholding subtracting withholding
Allowances) is: The amount of income tax to withhold is: allowances) is: The amount of income tax to withhold is:
Not over $73...... $0 Not over $227...... $0
Over− But not over− of excess over− Over− But not over− of excess over−
$ 73 −$ 260 $ 0.00 plus 10% −$ 73 $ 227 −$ 588 $ 0.00 plus 10%
$ 260 −$ 832 $ 18.70 plus 12% −$ 260 $ 600 −$ 1,711 $ 37.30 plus 12%
$ 832 −$ 1,692 $ 87.34 plus 22% −$ 832 $ 1,745 −$ 3,395 $ 174.70 plus 22%
$ 1,692 −$ 3,164 $ 276.54 plus 24% −$ 1,692 $ 3,465 −$ 6,280 $ 553.10 plus 24%
$ 3,164 −$ 3,998 $ 629.82 plus 32% −$ 3,164 $ 6,409 −$ 7,914 $ 1,259.66 plus 32%
$ 3,998 −$ 9,887 $ 896.70 plus 35% −$ 3,998 $ 8,007 −$ 11,761 $ 1,793.42 plus 35%
$ 9,887 $ 2,957.85 plus 37% −$ 9,887 $ 12,003 $ 3,167.52 plus 37%

A) $239.25
B) $211.51
C) $214.75
D) $217.93

Question 38

Andie earned $680.20 during the most recent weekly pay period. She is single with 3 withholding allowances and needs to decide between contributing 2.5% and $25 to her 401(k) plan. If she chooses the method that results in the lowest taxable income, how much will be withheld for Federal income tax (based on
The following table)?
Wage Bracket Method Tables for Income Tax Withholding
SINGLE Persons-WEEKLY Payroll Period
(For Wages Paid through December 2019)
And the wages are And the number of withholding allowances claimed is-
At least But lessthan 0 1 2 3 4 5 6 7 8 9 10
The amount of income tax to be withheld is-
$634 $645 $64 $55 $45 $35 $25 $16 $8 $0 $0 $0 $0
645 656 66 56 46 36 27 17 9 1 0 0 0
656 667 67 57 47 38 28 18 10 2 0 0 0
667 678 68 59 49 39 29 20 11 3 0 0 0
678 689 70 60 50 40 31 21 13 5 0 0 0
689 700 71 61 51 42 32 22 14 6 0 0 0
700 711 72 62 53 43 33 24 15 7 0 0 0
711 722 73 64 54 44 35 25 16 8 0 0 0
722 733 75 65 55 46 36 26 17 9 1 0 0
733 744 76 66 57 47 37 28 18 10 2 0 0
744 755 77 68 58 48 39 29 19 11 3 0 0
755 766 79 69 59 50 40 30 21 12 4 0 0
766 777 80 70 61 51 41 32 22 13 5 0 0
777 788 81 72 62 52 43 33 23 14 6 0 0
788 799 83 73 63 54 44 34 25 16 7 0 0
799 810 84 74 65 55 45 36 26 17 9 0 0
810 821 85 76 66 56 47 37 27 18 10 2 0
821 832 87 77 67 58 48 38 29 19 11 3 0
832 843 89 78 69 59 49 40 30 20 12 4 0
843 854 91 80 70 60 51 41 31 21 13 5 0
854 865 93 81 71 62 52 42 32 23 14 6 0
865 876 96 82 73 63 53 43 34 24 15 7 0
876 887 98 84 74 64 55 45 35 25 16 8 0
887 898 101 85 75 66 56 46 36 27 17 9 1
898 909 103 86 77 67 57 47 38 28 18 10 2
909 920 105 88 78 68 58 49 39 29 20 11 3
920 931 108 90 79 69 60 50 40 31 21 13 4
931 942 110 93 80 71 61 51 42 32 22 14 6
942 953 113 95 82 72 62 53 43 33 24 15 7
953 964 115 97 83 73 64 54 44 35 25 16 8
964 975 118 100 84 75 65 55 46 36 26 17 9
975 986 120 102 86 76 66 57 47 37 28 18 10
986 997 122 105 87 77 68 58 48 39 29 19 11
997 1,008 125 107 89 79 69 59 50 40 30 21 12
1,008 1,019 127 109 92 80 70 61 51 41 32 22 13
1,019 1,030 130 112 94 81 72 62 52 43 33 23 14
1,030 1,041 132 114 97 83 73 63 54 44 34 25 15
1,041 1,052 135 117 99 84 74 65 55 45 36 26 17
1,052 1,063 137 119 101 85 76 66 56 47 37 27 18
1,063 1,074 139 122 104 87 77 67 58 48 38 28 19
1,074 1,085 142 124 106 88 78 69 59 49 40 30 20
1,085 1,096 144 126 109 91 80 70 60 51 41 31 21
1,096 1,107 147 129 111 93 81 71 62 52 42 32 23
1,107 1,118 149 131 113 96 82 73 63 53 43 34 24
1,118 1,129 151 134 116 98 84 74 64 54 45 35 25
1,129 1,140 154 136 118 101 85 75 65 56 46 36 27
1,140 1,151 156 139 121 103 86 76 67 57 47 38 28
1,151 1,162 159 141 123 105 88 78 68 58 49 39 29
1,162 1,173 161 143 126 108 90 79 69 60 50 40 31
1,173 1,184 164 146 128 110 92 80 71 61 51 42 32
1,184 1,195 166 148 130 113 95 82 72 62 53 43 33
1,195 1,206 168 151 133 115 97 83 73 64 54 44 35
1,206 1,217 171 153 135 118 100 84 75 65 55 46 36
1,217 1,228 173 155 138 120 102 86 76 66 57 47 37
1,228 1,239 176 158 140 122 105 87 77 68 58 48 39
1,239 1,250 178 160 143 125 107 89 79 69 59 50 40
1,250 1,261 180 163 145 127 109 92 80 70 61 51 41
1,261 1,272 183 165 147 130 112 94 81 72 62 52 43
1,272 1,283 185 168 150 132 114 96 83 73 63 54 44
1,283 1,294 188 170 152 134 117 99 84 74 65 55 45
1,294 1,305 190 172 155 137 119 101 85 76 66 56 47
1,305 1,316 193 175 157 139 122 104 87 77 67 58 48
1,316 1,327 195 177 159 142 124 106 88 78 69 59 49
1,327 1,338 197 180 162 144 126 109 91 80 70 60 50
1,338 1,349 200 182 164 147 129 111 93 81 71 61 52
1,349 1,360 202 184 167 149 131 113 96 82 73 63 53
1,360 1,371 205 187 169 151 134 116 98 84 74 64 54
1,371 1,382 207 189 172 154 136 118 100 85 75 65 56
1,382 1,393 210 192 174 156 138 121 103 86 76 67 57
1,393 1,404 212 194 176 159 141 123 105 88 78 68 58
1,404 1,415 214 197 179 161 143 126 108 90 79 69 60
1,415 1,426 217 199 181 163 146 128 110 92 80 71 61
1,426 1,437 219 201 184 166 148 130 113 95 82 72 62

A) $40.00
B) $48.00
C) $36.00
D) $39.00

Question 39

Jeannie is an adjunct faculty at a local college, where she earned $680.00 during the most recent semimonthly pay period. Her prior year-to-date pay is $18,540. She is single and has one withholding allowance. What is her Social Security tax for the pay period?

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

Question 40

Renee is a salaried exempt employee who earns an annual salary of $64,200, which is paid semimonthly. She is married with four withholding allowances. What is her total FICA tax liability per pay period? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

A) $38.79
B) $204.64
C) $165.85
D) $409.28

Question 41

Which of the following is the correct sequence for computing net pay?

A) Compute gross pay, deduct taxes, and add voluntary deductions.
B) Compute gross pay, deduct pre-tax amounts, compute FICA, deduct taxes, and deduct post-tax amounts.
C) Compute gross pay then deduct withholding and add FICA taxes to obtain net pay.
D) Compute gross pay, compute FICA, deduct pre-tax amounts, and deduct taxes.

Question 42

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

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

Question 43

The annual payroll tax guide that the IRS distributes is called ________.

A) The IRS tax guide
B) Publication 15
C) Circular 15
D) Publication E

Question 44

The purpose of the wage base used for the Social Security tax is ________.

A) to determine when to start withholding the tax from an employee's pay
B) to determine the amount of Social Security tax to withhold from an employee's pay
C) to establish a maximum salary level for application of the tax to employee pay
D) to compute the total amount of Social Security tax that a firm must pay

Question 45

Jesse is a part-time nonexempt employee in Austin, Texas, who earns $12.50 per hour. During the last biweekly pay period he worked 35 hours. He is married with zero withholding allowances, which means his federal income tax deduction is $21.00, and has additional federal tax withholding of $30 per pay period.
What is his net pay? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

A) $354.28
B) $374.03
C) $378.03
D) $353.03

Question 46

Which of the following payment methods is growing in popularity among employees?

A) Check
B) Paycard
C) Cash
D) Direct Deposit

Question 47

The factors that determine an employee's federal income tax are ________.

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

Question 48

What is an advantage of direct deposit from the employee's perspective?

A) Long processing times for pay disbursements.
B) Secure access to compensation.
C) The requirement to have a bank account.
D) Access to payroll data on non-secured website.

Question 49

Amanda is a full-time exempt employee in Sparks, Nevada, who earns $84,000 annually. She is married with 1 deduction and is paid biweekly. She contributes $150.00 per pay period to her 401(k) and has pre-tax health insurance and AFLAC deductions of $50.00 and $75.00, respectively. Amanda contributes $25.00
Per pay period to the United Way. What is her net pay? (Use the percentage method. Do not round intermediate calculations. Round final answers to 2 decimal
Places.)
Table 5. Percentage Method-2019 Amount for one Withholding Allowance
Payroll Period One Withholding
Allowance
Weekly $80.80
Biweekly 161.50
Semimonthly 175.00
Monthly 350.00
Quarterly 1,050.00
Semiannually 2,100.00
Annually 4,200.00
Daily or miscellaneous (each day of the payroll period) 16.20
TABLE 2-BIWEEKLY Payroll Period
(a) SINGLE person (including head of household)- (b) MARRIED person-
If the amount of wages (after If the amount of wages (after
Subtracting withholding subtracting withholding
Allowances) is: The amount of income tax to withhold is: allowances) is: The amount of income tax to withhold is
Not over $146...... $0 Not over $454...... $0
Over- But not over- of excess over- Over- But not over- of excess ov
$ 146 -$ 519 $ 0.00 plus 10% -$ 146 $ 454 -$ 1,200 $ 0.00 plus 10%
$ 519 -$ 1,664 $ 37.30 plus 12% -$ 519 $ 1,200 -$ 3,490 $ 74.60 plus 12%
$ 1,664 -$ 3,385 $ 174.70 plus 22% -$ 1,664 $ 3,490 -$ 6,931 $ 349.40 plus 22%
$ 3,385 -$ 6,328 $ 553.32 plus 24% -$ 3,385 $ 6,931 -$ 12,817 $ 1,106.42 plus 24%
$ 6,328 -$ 7,996 $ 1,259.264 plus 32% -$ 6,328 $ 12,817 -$ 16,154 $ 2,519.06 plus 32%
$ 7,996 -$ 19,773 $ 1,793.40 plus 35% -$ 7,996 $ 16,154 -$ 24,006 $ 3,586.90 plus 35%
$ 19,773 $ 5,915.35 plus 37% -$ 19,773 $ 24,006 $ 6,335.10 plus 37%

A) $2,394.47
B) $2,193.60
C) $2,427.27
D) $2,605.44

Question 50

Best practices for paying employees by check include which of the following? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong
Answer. Any boxes left with a question mark will be automatically graded as incorrect.)

A) Maintenance of a separate checking account for payroll purposes.
B) Keeping a single check register for the firm's checking accounts.
C) Logging the number, amount, and purpose of each check used.
D) Establishing an unclaimed property account for uncashed checks.

Question 51

Why do employers use checks as an employment payment method?

A) Paying employees by check requires the employer to keep currency on the premises.
B) Paying employees by check offers a level of security of employee payments.
C) Paying employees by check allows the employer flexibility with its bank accounts.
D) Paying employees by check increases the complexity of the payroll process.

Question 52

Maile is a full-time exempt employee in Boca Raton, Florida, 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 intermediate
Calculations. Round your final answer to 2 decimal places.)

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

Question 53

Which of the following is true about cash as a method of paying employees?

A) Cash is readily transferable and highly liquid.
B) Cash is the most secure payment method.
C) Cash is the most convenient pay method for employers.
D) Cash is the most widely used payment method.

Question 54

From the employer's perspective, which of the following is a challenge of paying employees by direct deposit?

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

Question 55

The percentage method of determining an employee's Federal income tax deductions ________.

A) allows payroll accountants to determine Federal income tax for the firm itself
B) is used to promote complexity in payroll practices
C) is less accurate than the results gained from using the wage-bracket method
D) is used primarily for high wage earners and computerized payroll programs

Question 56

Collin is a full-time exempt employee in Juneau, Alaska, who earns $135,000 annually and has not yet reached the Social Security wage base. He is single with 1 withholding allowance and is paid semimonthly. He contributes 3% per pay period to his 401(k) and has pre-tax health insurance and AFLAC deductions of
$150 and $25, respectively. Collin has a child support garnishment of $300 per pay period. What is his net pay? (Use the percentage method. Do not round
Intermediate calculations. Round your final answer to 2 decimal places.)
Table 5. Percentage Method-2019 Amount for One Withholding Allowance
Federal Income tax using percentage method
One Withholding
Payroll Period Allowance
Weekly $80.80
Biweekly 161.50
Semimonthly 175.00
Monthly 350.00
Quarterly 1,050.00
Semiannually 2,100.00
Annually 4,200.00
Daily or miscellaneous (each day of the payroll period) 16.20
TABLE 3-SEMIMONTHLY Payroll Period
(a) SINGLE person (including head of household)- (b) MARRIED person-
If the amount of wages (after If the amount of wages (after
Subtracting withholding subtracting withholding
Allowances) is: The amount of income tax to withhold is: allowances) is: The amount of income tax to withhold is
Not over $158...... $0 Not over $492...... $0
Over- But not over- of excess over- Over- But not over- of excess ov
$ 158 −$ 563 $ 0.00 plus 10% −$ 158 $ 492 -$ 1,300 $ 0.00 plus 10%
$ 563 −$ 1,803 $ 40.50 plus 12% −$ 563 $ 1,300 -$ 3,781 $ 80.80 plus 12%
$ 1,803 −$ 3,667 $ 189.30 plus 22% −$ 1,803 $ 3,781 -$ 7,508 $ 378.52 plus 22%
$ 3,667 −$ 6,885 $ 599.38 plus 24% −$ 3,667 $ 7,508 -$ 13,885 $ 1,198.46 plus 24%
$ 6,885 −$ 8,663 $ 1,364.50 plus 32% −$ 6,885 $ 13,885 -$ 17,500 $ 2,728.94 plus 32%
$ 8,663 −$ 21,421 $ 1,943.06 plus 35% −$ 8,663 $ 17,500 -$ 26,006 $ 3885.74 plus 35%
$ 21,421 $ 6,408.36 plus 37% −$ 21,421 $ 26,006 $ 6,862.84 plus 37%

A) $3,974.60
B) $3,885.14
C) $3,619.53
D) $3,653.05

Question 57

Nickels Company is located in West Virginia has employees who live in Ohio, Florida, Tennessee, and West Virginia. For which state(s) should the company collect and remit state income tax? (You may select more than one answer. Single click the box with the question mark to produce a check mark for
A correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will
Be automatically graded as incorrect.)

A) Florida
B) Ohio
C) West Virginia
D) Tennessee

Question 58

When a payroll check is subject to escheatment, who handles the distribution of the money?

A) The IRS.
B) The employee.
C) The state laws.
D) The company.

Question 59

Which body issued Regulation E to protect consumers from loss of deposited funds?

A) Department of Homeland Security
B) Internal Revenue Service
C) American Banking Association
D) Federal Deposit Insurance Corporation

Question 60

Danny is a full-time exempt employee in Alabama, where his 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 intermediate calculations. Round your final answer to 2 decimal places.)
Table 5. Percentage Method-2019 Amount for one Withholding Allowance
One Withholding
Payroll Period Allowance
Weekly $80.80
Biweekly 161.50
Semimonthly 175.00
Monthly 350.00
Quarterly 1,050.00
Semiannually 2,100.00
Annually 4,200.00
Daily or miscellaneous (each day of the payroll period) 16.20
TABLE 3-SEMIMONTHLY Payroll Period
(a) SINGLE person (including head of household)- (b) MARRIED person-
If the amount of wages (after If the amount of wages (after
Subtracting withholding subtracting withholding
Allowances) is: The amount of income tax to withhold is: allowances) is: The amount of income tax to withhold is
Not over $158...... $0 Not over $492...... $0
Over- But not over- Of excess over- Over- But not over- of excess ov
$ 158 −$ 563 $ 0.00 plus 10% −$ 158 $ 492 -$ 1,300 $ 0.00 plus 10%
$ 563 −$ 1,803 $ 40.50 plus 12% −$ 563 $ 1,300 -$ 3,781 $ 80.80 plus 12%
$ 1,803 −$ 3,667 $ 189.30 plus 22% −$ 1,803 $ 3,781 -$ 7,508 $ 378.52 plus 22%
$ 3,667 −$ 6,885 $ 599.38 plus 24% −$ 3,667 $ 7,508 -$ 13,885 $ 1,198.46 plus 24%
$ 6,885 −$ 8,663 $ 1,364.50 plus 32% −$ 6,885 $ 13,885 -$ 17,500 $ 2,728.94 plus 32%
$ 8,663 −$ 21,421 $ 1,943.06 plus 35% −$ 8,663 $ 17,500 -$ 26,006 $ 3885.74 plus 35%
$ 21,421 $ 6,408.36 plus 37% −$ 21,421 $ 26,006 $ 6,862.84 plus 37%

A) $2,403.94
B) $2,178.90
C) $2,245.53
D) $2,278.94

Question 61

The percentage of the Medicare tax withholding ________.

A) changes every year in response to industry needs
B) is the same for every employee, earning less than $200,000
C) is subject to change based on the firm's profitability
D) is always the same for both employer and employee

Question 62

The purpose of paycards as a pay method is to ________.

A) promote debit card use as a means of economic stimulus
B) prevent employees from opening bank accounts
C) protect payroll processes against embezzlement
D) promote accessibility and portability of employee compensation

Question 63

Post-Tax Deductions are amounts ________.

A) That are only mandatory deductions like garnishments and union dues
B) That are voluntarily chosen by the employee
C) That Include both mandatory and voluntary deductions
D) That the employer chooses to withhold after assessing the employee's tax liability

Question 64

State and Local Income Tax rates ________.

A) are paid by the employer to the Federal government
B) differ among states and localities
C) are mandated by Federal law
D) exist at the same level in every state