Question 1

Compute the net pay for each employee.The FICA tax rate is: OASDI 6.2% on a limit of $117,000;Medicare is 1.45%;federal income tax is 15%;state income tax is 5%;and medical insurance is $100 per employee.
 $\begin{array}{lll}&\text { Cumulative Pay }&\text { This Week's Pay }\
\text { Sarah Ahti } & \$ 75,000 & \$ 3,500 \
\text { Matt DeFore } & \$ 62,000 & \$ 2,500
\end{array}$

Accepted Answer

The answer of Compute the net pay for each employee.The...

Question 2

An employee earns $16 per hour.He worked 45 hours the last week of January (assuming time and a half for overtime).
Calculate the total amount of employee deductions.
The business is involved in interstate commerce.
Federal Income Tax rate = 20%
State Income Tax rate = 5%
FICA rate OASDI = 6.2% and Medicare = 1.45%
FUTA rate = .8%
SUTA rate = 5.6%
$ ________

Accepted Answer

The answer of An employee earns $16 per hour.He worked...

Question 3

The payroll register:

Accepted Answer

The answer of The payroll register:
...

Question 4

An employee earns $33 per hour.She worked 53 hours the third week of January.
Calculate the gross pay.
The business is involved in interstate commerce.
Federal Income Tax rate = 20%
State Income Tax rate = 5%
FICA rate OASDI = 6.2% and Medicare = 1.45%
FUTA rate = .8%
SUTA rate = 5.6%
$ ________

Accepted Answer

The answer of An employee earns $33 per hour.She worked...

Question 5

An employee has gross earnings of $2,000 with withholdings of 6.2% FICA-OASDI,1.45 % FICA-Medicare,$100 for federal income tax and $30 for state income tax.How much is the gross pay?

Accepted Answer

Gross pay is the total earnings before any deductions, so it is $2,000.

Question 6

The employees collectively earn a gross wage of $90,000 for the pay period,but the employer says that they cost $97,000.Discuss the discrepancy.

Accepted Answer

The answer of The employees collectively earn a gross wage...

Question 7

Which tax does not have a wage base limit?

Accepted Answer

FICA-Medicare does not have a wage base limit, meaning all earned income is subject to the Medicare tax.

Question 8

The employee earnings record:

Accepted Answer

The employee earnings record keeps track of an individual employee's payroll history for a calendar year. This includes details such as earnings, deductions, and taxes withheld. It is not a substitute for a W-4, which is a form used to determine an employee's tax withholding. It also does not show all employee information related to an entire pay period, as it only records information for the specific employee.

Question 9

Bob's Auction House's payroll for June includes the following data:

What is the net pay?

Accepted Answer

The answer of Bob's Auction House's payroll for June includes...

Question 10

The payroll register includes sections for recording:

Accepted Answer

The payroll register is a summary of employee compensation for a specific time period. It includes details such as gross pay (the total amount earned), deductions (such as taxes and benefits), and net pay (the amount paid to the employee after deductions). Therefore, choice A is the correct option. The other options are not relevant to the content of the payroll register.

Question 11

Why would a business decide to use an external company to prepare their payroll checks and related reports?

Accepted Answer

The answer of Why would a business decide to use...

Question 12

The taxable earnings column of the payroll register records the tax due.

Accepted Answer

The taxable earnings column of the payroll register records the amount of earnings that are subject to taxation, but it does not calculate the actual tax due. The tax due is calculated using the employee's individual tax rate and any applicable deductions.

Question 13

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

Accepted Answer

The payroll register provides a detailed record of all employee earnings for a given pay period, including hours worked, pay rate, deductions, and net pay. This information is used to calculate payroll taxes and create individual employee earnings records. The W-2 form is an annual wage and tax statement that summarizes an employee's earnings and withholdings for the year. The W-4 form is used by employees to indicate their tax withholding preferences. The employee earnings record is a document that tracks an individual employee's earnings and other payroll-related information over time. While it may be useful for certain purposes, it does not provide an overview of the entire weekly payroll.

Question 14

A summary record of each person's earnings,deductions,and net pay is called a(n):

Accepted Answer

An employee individual earnings record keeps a record of each person's earnings, deductions, and net pay. A payroll register provides a summary of all employee earnings and deductions for a specific payroll period, but not the specific details for each individual employee. A W-4 is a form used to determine an employee's tax withholding, and a general journal is a bookkeeping tool used to record various transactions, not specifically related to payroll.

Question 15

An employee has gross earnings of $1,200 with withholdings of 6.2% FICA-OASDI,1.45% FICA-Medicare,$50 for federal income tax and $10 for state income tax.How much is the net pay?

Accepted Answer

The answer of An employee has gross earnings of $1,200...

Question 16

The use of a payroll register to record a company's payroll is not optional.

Accepted Answer

The use of a payroll register is required by law to accurately record employee wages and deductions for tax and accounting purposes.

Question 17

What is required of an employer by the Federal Insurance Contributions Act?

Accepted Answer

The answer of What is required of an employer by...

Question 18

The payroll information for a pay period is found in the payroll register.

Accepted Answer

The payroll register is a record that contains all payroll information for a pay period, such as hours worked, wages earned, deductions taken, and net pay.

Question 19

Which report would an employer review if they wanted to check how much an employee has earned to date?

Accepted Answer

An employer would review both the individual employee earnings record and the payroll register to check how much an employee has earned to date.

Question 20

Workers' Compensation Insurance is:

Accepted Answer

Workers' Compensation Insurance is paid by the employer to protect the employee in case of job-related injury or death. It covers medical expenses, lost wages, and rehabilitation costs.

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