Question 1

Compute net earnings on March 3,when gross (taxable)pay equals $750.FICA-OASDI tax rates are 6.2%,FICA-Medicare rate is 1.45%,federal income tax $71.00,and state income tax $5.00.
A)$615.00
B)$610.00
C)$616.62
D)$672.12

Accepted Answer

First, we need to calculate the FICA-OASDI tax and FICA-Medicare tax:
FICA-OASDI tax = 6.2% * $750 = $46.50
FICA-Medicare tax = 1.45% * $750 = $10.88

Next, we need to subtract the federal and state income taxes:
Federal income tax = $71.00
State income tax = $5.00

So, the total deductions are:
$46.50 (FICA-OASDI) + $10.88 (FICA-Medicare) + $71.00 (federal income tax) + $5.00 (state income tax) = $133.38

Now, we can calculate the net earnings:
$750 (gross pay) - $133.38 (total deductions) = $616.62

Therefore, the answer is C) $616.62.

Question 2

Todd earns an hourly rate of $20 and had taxes withheld totaling $200.What would his net earnings be if he worked 44 hours (assuming double time over 40 hours)?
A)$760
B)$780
C)$720
D)$860

Accepted Answer

Todd earns $20 per hour for the first 40 hours, totaling $800. For the 4 hours of overtime, he earns double time, which is $40 per hour, totaling $160. His gross earnings are $800 + $160 = $960. After $200 in taxes, his net earnings are $960 - $200 = $760.

Question 3

Bob Smith's hourly rate is $35.00,and he worked 38 hours during the week.What is his gross pay for the week?
A)$1,330
B)$780
C)$1,400
D)$975

Accepted Answer

To calculate Bob's gross pay for the week, we need to multiply his hourly rate by the number of hours he worked:
$35.00/hour x 38 hours = $1,330
Therefore, the correct answer is choice A, $1,330.

Question 4

Which of the below allowances would have the most amount of taxes withheld for federal income tax purposes?
A)S-1
B)S-0
C)S-3
D)S-2

Accepted Answer

The less allowances claimed on Form W-4, the more taxes will be withheld. Therefore, S-0 would result in the most amount of taxes withheld for federal income tax purposes.

Question 5

Valerie Johnson works 42 hours as a coffee barista and earns $15 per hour.Compute her weekly pay assuming an overtime rate of 1.5.
A)$552
B)$645
C)$480
D)$624

Accepted Answer

The answer of Valerie Johnson works 42 hours as a...

Question 6

On June 15,Bob Love earned $5,000 and has the following deductions: FICA-OASDI 6.2%,FICA-Medicare 1.45%;federal income tax of $300;and state income tax $40.What is his net pay?
A)$3,400
B)$4,277.50
C)$4,454
D)$$5,000

Accepted Answer

First, we need to find the total deductions:

FICA-OASDI: 6.2% * $5,000 = $310
FICA-Medicare: 1.45% * $5,000 = $72.50
Federal income tax: $300
State income tax: $40

Total deductions = $722.50 + $300 + $40 = $1,062.50

Now we can find the net pay:

Net pay = $5,000 - $1,062.50 = $3,937.50

Therefore, the answer is B.

Question 7

Net pay is the same as:
A)gross pay.
B)take-home pay.
C)before taxes pay.
D)pay before deductions.

Accepted Answer

Net pay refers to the amount of money an employee takes home after all deductions have been made from their gross pay. Therefore, it is also known as take-home pay. Option A, C, and D are incorrect as they refer to the pay amount before deductions such as taxes, insurance, and retirement contributions are made.

Question 8

Which of the below allowances would have the least amount of taxes withheld for federal income tax purposes?
A)S-1
B)S-0
C)S-3
D)S-2

Accepted Answer

The more allowances claimed, the less tax is withheld. S-3 means claiming three allowances, which results in the least amount of taxes withheld compared to S-0, S-1, or S-2.

Question 9

The amount of federal income tax withheld from an employee during the year is determined by the employee's:
A)W-4 form.
B)W-2 form.
C)1040 form.
D)all of these answers are correct.

Accepted Answer

The W-4 form is used by the employer to determine the amount of federal income tax to withhold from an employee's paycheck based on their marital status, number of allowances claimed, and any additional withholding requested by the employee. The W-2 form is used to report the actual amount of federal income tax withheld and other wage and tax information at the end of the year, but it does not determine the amount withheld. The 1040 form is used by the employee to file their personal income tax return and reconcile any differences between the amount withheld and their actual tax liability.

Question 10

A W-4 form:
A)determines the amount of FICA-OASDI to be withheld.
B)determines the amount of FICA-Medicare to be withheld.
C)provides the number of allowances an employee has claimed.
D)shows total net wages earned for the year.

Accepted Answer

A W-4 form provides information on the number of allowances an employee has claimed. This information is used to determine the amount of federal income tax to be withheld from an employee's paycheck by the employer. It does not determine the amount of FICA-OASDI or FICA-Medicare to be withheld, nor does it show the total net wages earned for the year.

Question 11

An allowance or exemption represents a certain amount of a person's income that will be considered nontaxable.

Accepted Answer

An allowance or exemption allows a certain amount of a person's income to be excluded from taxable income, making it nontaxable.

Question 12

Employers pay the following payroll taxes,except:
A)FICA-OASDI.
B)Federal income tax.
C)State income tax.
D)B and C.

Accepted Answer

The answer of Employers pay the following payroll taxes,except:
A)FICA-OASDI.
B)Federal income...

Question 13

When calculating the employee's payroll,the clerk forgot about the wage base limits.What impact could this error cause on the employee's check?
A)FICA-OASDI could be overstated.
B)FUTA could be overstated.
C)SUTA could be overstated.
D)All of these could be correct.

Accepted Answer

The answer of When calculating the employee's payroll,the clerk forgot...

Question 14

Jane works 43 hours at a rate of pay of $20 per hour.She receives double pay over 40 hours.What is her gross pay?
A)$860
B)$720
C)$780
D)$920

Accepted Answer

Jane's regular pay for the first 40 hours is 40 x $20 = $800. For the remaining 3 hours, her double pay rate is $20 x 2 = $40 per hour. So, her overtime pay is $40 x 3 = $120. Her total gross pay is $800 + $120 = $920. Therefore, the best choice is D.

Question 15

A work week is 180 hours in length.

Accepted Answer

A typical work week is 40 hours, not 180 hours.

Question 16

Another name for the Fair Labor Standards Act is:
A)Federal Insurance Contribution Act.
B)Federal Wage and Hour Law.
C)Federal Income Tax Act.
D)Federal Wage and Work Law.

Accepted Answer

The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law. Option A, Federal Insurance Contribution Act, refers to the legislation governing Social Security taxes. Option C, Federal Income Tax Act, refers to the legislation governing federal income taxes. Option D, Federal Wage and Work Law, is not a common or recognized name for any federal labor legislation.

Question 17

Paul received $1,900 for working 40 hours.What was Paul's rate of pay per hour?
A)$47.50
B)$44.00
C)$45.00
D)$50.00

Accepted Answer

Paul's rate of pay per hour is $1,900 / 40 hours = $47.50.

Question 18

The amount of FICA-OASDI and FICA-Medicare withheld from the employee's check is determined by the employee's:
A)W-2.
B)net pay.
C)earnings for the period and cumulative earnings.
D)W-4.

Accepted Answer

The amount of FICA-OASDI and FICA-Medicare withheld from the employee's check is determined by their earnings for the pay period and cumulative earnings. The employee's W-2 is a report of their total earnings and withholdings for the year and is not used to determine the amount withheld from each pay period. The net pay is the amount the employee takes home after all deductions, including FICA, are taken out. The W-4 is used to determine federal income tax withholding, not FICA withholding.

Question 19

Kathy Jenkins earns $75,000 per year.What is her net pay for the month ended January 31,if FICA tax rates are: 6.2% for OASDI and 1.45% for Medicare;federal income tax is 20%;and union dues are $100 per month?
A)$4,100
B)$4,421.87
C)$4,326
D)$4,293

Accepted Answer

First, we need to calculate the total amount of taxes Kathy needs to pay:
- OASDI tax: $75,000 x 6.2% = $4,650
- Medicare tax: $75,000 x 1.45% = $1,087.50
- Federal income tax: $75,000 x 20% = $15,000

Total taxes = $4,650 + $1,087.50 + $15,000 = $20,737.50

Next, we need to calculate her monthly net pay:
- Gross pay: $75,000 / 12 = $6,250
- Union dues: $100

Gross pay - Union dues - Total taxes = Net pay
$6,250 - $100 - $20,737.50 = $4,412.50

Therefore, Kathy's net pay for the month ended January 31 is $4,421.87, which is the closest to option B.

Question 20

A calendar year is:
A)any 12-month period.
B)a 12-month period beginning January 1 and ending on December 31.
C)always the same as the company's fiscal year.
D)None of the above answers are correct.

Accepted Answer

A calendar year is a 12-month period beginning on January 1 and ending on December 31. This is the commonly recognized definition around the world.

Quiz 7: Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Compute net earnings on March 3,when gross (taxable) pay equals $750.FICA-OASDI tax rates are 6.2%,FICA-Medicare rate is 1.45%,federal income tax $71.00,and state income tax $5.00.

Todd earns an hourly rate of $20 and had taxes withheld totaling $200.What would his net earnings be if he worked 44 hours (assuming double time over 40 hours) ?

Bob Smith's hourly rate is $35.00,and he worked 38 hours during the week.What is his gross pay for the week?

Which of the below allowances would have the most amount of taxes withheld for federal income tax purposes?

Valerie Johnson works 42 hours as a coffee barista and earns $15 per hour.Compute her weekly pay assuming an overtime rate of 1.5.

On June 15,Bob Love earned $5,000 and has the following deductions: FICA-OASDI 6.2%,FICA-Medicare 1.45%;federal income tax of $300;and state income tax $40.What is his net pay?

Net pay is the same as:

Which of the below allowances would have the least amount of taxes withheld for federal income tax purposes?

The amount of federal income tax withheld from an employee during the year is determined by the employee's:

A W-4 form:

An allowance or exemption represents a certain amount of a person's income that will be considered nontaxable.

Employers pay the following payroll taxes,except:

When calculating the employee's payroll,the clerk forgot about the wage base limits.What impact could this error cause on the employee's check?

Jane works 43 hours at a rate of pay of $20 per hour.She receives double pay over 40 hours.What is her gross pay?

A work week is 180 hours in length.

Another name for the Fair Labor Standards Act is:

Paul received $1,900 for working 40 hours.What was Paul's rate of pay per hour?

The amount of FICA-OASDI and FICA-Medicare withheld from the employee's check is determined by the employee's:

Kathy Jenkins earns $75,000 per year.What is her net pay for the month ended January 31,if FICA tax rates are: 6.2% for OASDI and 1.45% for Medicare;federal income tax is 20%;and union dues are $100 per month?

A calendar year is: