Question 1

Ron Swift earned $1,500 last week. He is married, is paid biweekly, and claims two exemptions. Using the percentage method (use tables in the handbook), his income tax is:

Accepted Answer

The answer of Ron Swift earned $1,500 last week. He...

Question 2

Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale: $$\begin{array} { l l } 
1 - 50 & = \$ 1.65 \
51 - 150 & = \$ 3.30 \
151 - 200 & = \$ 4.95 \
\text { Over 200 } & = \$ 6.00
\end{array}$$ What is Mindy's pay if she produced 192 boots for the week?

Accepted Answer

The answer of Mindy makes boots for Belleville Boot Factory....

Question 3

A merit rating system for SUTA means:

Accepted Answer

A merit rating system for SUTA means that the rate varies with the employer's employment record. The better an employer's record, the lower the rate they pay. The other options are not accurate.

Question 4

Leo Corporation pays its employees on a graduated commission scale: 6% on the first $40,000 in sales, 7% on sales from $40,000 to $80,000, and 9% on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:

Accepted Answer

- Bernie's sales of $105,000 fall into the third commission rate category (sales greater than $80,000)
- For the first $40,000, Bernie earns 6%, or $2,400 commission (40,000 * 0.06)
- For the next $40,000, Bernie earns 7%, or $2,800 commission (40,000 * 0.07)
- For the remaining $25,000 ($105,000 - $80,000), Bernie earns 9%, or $2,250 commission (25,000 * 0.09)
- Bernie's total commission is the sum of these amounts: $2,400 + $2,800 + $2,250 = $7,450

Question 5

Lana Powell has cumulative earnings of $116,000 at the end of September. In the first week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is (assume Social Security rate of 6.2% on $118,500 and Medicare of 1.45%):

Accepted Answer

The answer of Lana Powell has cumulative earnings of $116,000...

Question 6

Lee Wong is a sales clerk at Sears. She is paid $8.00 per hour plus a commission of 4% on all sales. Assuming Lee works 39 hours and has sales of $4,000, her gross pay is:

Accepted Answer

Lee's hourly wage is $8.00 per hour, so her base pay for working 39 hours is 8 x 39 = $312.

Her commission is 4% of her sales, which is 0.04 x 4000 = $160.

Therefore, her gross pay is $312 + $160 = $472.

The correct answer is C.

Question 7

Jim Smith is a salesman who receives a $1,100 draw per week. He receives a 12% commission on all sales. Sales for Jim were $205,000 for the month. Assuming a four-week month, Jim's final commission after the draw for the month is:

Accepted Answer

The answer of Jim Smith is a salesman who receives...

Question 8

Jasper works at Panera Company for $11.25 per hour plus a commission of 2% of her sales. Assuming Jasper worked 26 hours last week and had sales of $2,610, her gross pay is:

Accepted Answer

Jasper's hourly earnings are 26 hours * $11.25 = $292.50. Her commission is 2% of $2,610 = $52.20. Adding these together gives a total of $344.70.

Question 9

Percentage method tables can show:

Accepted Answer

Percentage method tables can be used to calculate taxes for all types of payroll periods, including weekly, biweekly, semimonthly, and monthly.

Question 10

The percentage method aids in calculating:

Accepted Answer

The percentage method is used to calculate Federal Income Tax (FIT) withholding from an employee's paycheck.

Question 11

Sandi works for Elizabeth Arden Cosmetics and earns $500 per week salary plus 4% commission on sales over $2,000. If Sandi sold $2,733 last week, what was her salary?

Accepted Answer

The answer of Sandi works for Elizabeth Arden Cosmetics and...

Question 12

Bob Neff, owner of an automotive dealership, pays one of his salesmen, Mike, a $1,300 draw per week plus 6% on all commission sales. Mike sold seven cars over the four-week period, totaling $186,900 for the month. Mike's commission minus the draw is:

Accepted Answer

The answer of Bob Neff, owner of an automotive dealership,...

Question 13

David is paid on a graduated commission scale at Nooter Company. He receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:

Accepted Answer

To calculate David's commission, we need to break up his sales into the different commission rates:

- For the first $20,000, David earns 2% commission, which is $400.
- For the next $50,000 ($70,000 - $20,000), David earns 6% commission, which is $3,000.
- For the next $12,000 ($82,000 - $70,000), David earns 8.5% commission, which is $1,020.

So far, David's commission is $4,420 ($400 + $3,000 + $1,020).

- For any sales over $100,000, David earns 10% commission. However, he did not exceed $100,000 in sales, so we do not need to consider this additional commission rate.

Therefore, the correct answer is D)$4,420.

Question 14

FUTA tax is paid:

Accepted Answer

FUTA tax stands for Federal Unemployment Tax Act, which requires employers to pay unemployment taxes. Therefore, FUTA tax is paid by the employer, not the employee.

Question 15

FICA tax base:

Accepted Answer

The FICA tax base, which includes both Social Security and Medicare taxes, typically changes from year to year based on inflation and other factors. For example, in 2021, the Social Security tax applies to the first $142,800 of earnings, while the Medicare tax applies to all earnings with no cap.

Question 16

To date, Jay Ward has cumulative earnings of $118,000. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare):

Accepted Answer

Jay Ward's cumulative earnings before this week are $118,000. Adding this week's $3,000 brings it to $121,000, which is below the $128,400 Social Security wage base. Therefore, the Social Security tax is 6.2% of $3,000, which is $186.00.

Question 17

Bill Burne's earnings are subject to deductions for Social Security, Medicare, and FIT. To date his cumulative earnings are $110,000. This week Bill earns $1,200. Bill, who is married, is paid weekly and claims three exemptions. Assume the Social Security rate is 6.2% on $128,400 and 1.45% for Medicare. His net pay for the week is (use percentage table in handbook to calculate FIT):

Accepted Answer

Bill's earnings for the week are $1,200. Social Security tax is 6.2% on earnings up to $128,400, so $1,200 * 6.2% = $74.40. Medicare tax is 1.45%, so $1,200 * 1.45% = $17.40. To calculate FIT, use the percentage table for a married person with three exemptions. Subtract these taxes from $1,200 to find the net pay.

Question 18

Jill Hartman earns $750 per week plus 3% of sales in excess of $6,500. If Jill sells $25,000 in the first week, her earnings are:

Accepted Answer

The answer of Jill Hartman earns $750 per week plus...

Question 19

The taxable earnings column of a payroll register records:

Accepted Answer

The taxable earnings column of a payroll register records what wages will be taxed, not the actual or estimated tax.

Question 20

Jim Ross is an automobile salesman who receives a salary of $500 per week plus a commission of 3% on all sales. During a four-week period he sold $42,000 worth of cars. What were Jim's average weekly earnings?

Accepted Answer

Jim's total earnings for the four-week period include his salary plus commission. His salary is $500 per week for four weeks, which totals $2,000. His commission is 3% of $42,000, which is $1,260. Therefore, his total earnings for the four weeks are $2,000 + $1,260 = $3,260. To find his average weekly earnings, divide this total by 4, which gives $815. None of the provided options match this calculation.

Quiz 9: Payroll

Ron Swift earned $1,500 last week. He is married, is paid biweekly, and claims two exemptions. Using the percentage method (use tables in the handbook) , his income tax is:

Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale: $\begin{array} { l l } 1 - 50 & = \$ 1.65 \\51 - 150 & = \$ 3.30 \\151 - 200 & = \$ 4.95 \\\text { Over 200 } & = \$ 6.00\end{array}$ What is Mindy's pay if she produced 192 boots for the week?