Need A Tutor?    |   Need Homework Help?                                                                             Help and Support     | Join or Cancel

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.
In the payroll register, the employer should record an overtime premium of

a. $440.
b. $220.
c. $20
d. $5.
 
 
Which of the following is NOT typically an employee payroll withholding?
 
a. federal income taxes
b. union dues
c. state unemployment taxes
d. medical insurance
   
The employer records the amount of federal income tax withheld as:
 
a. an asset.
b. a payroll tax expense.
c. a liability
d. an expense.
   
An employee whose regular hourly rate is $9 and whose overtime rate is 1.5 times the regular rate worked 44 hours one week.
The employee's gross pay was
 
a. $378.
b. $396.
c. $414
d. $594
   
The amount debited to Wages Expense when a payroll is recorded is the
 
a. regular gross earnings.
b. earnings after taxes.
c. net earnings.
d. total gross earnings
   
Federal law requires employers to withhold which of the following taxes from the employee's pay?
 
a. federal income tax, social security tax, Medicare tax, and FUTA.
b. federal income tax, social security tax, Medicare tax, and state and local taxes.
c. federal income tax, social security tax, and Medicare tax
d. Federal and state income tax, social security tax, Medicare tax, and FUTA.
   
Which of the following statements is not correct?
 
a. The FUTA tax provides benefits for employees who become unemployed.
b. The SUTA tax protects employees against losses from job-related injuries or illnesses......
c. The earnings base for the federal and state unemployment taxes are the same, the first $7,000 of an employee's earnings for the year.
d. The federal unemployment tax rate can be reduced by the rate charged by state for the state unemployment tax.
   
Identify the statement below that is not true regarding social security tax.
 
a. Both the employee and the employer pay an equal amount of social security tax on the employee's wages.
b. The social security tax provides benefits for retirement as well as worker disability.
c. In any given year, there is no limit on the amount of wages subject to social security tax
d. Social security is sometimes referred to as FICA
   
Jason McCurdy has a regular hourly rate of $10.75. During a two week period, he worked 80 hours and had deductions of $110 for federal income tax,
$53.32 for social security tax, and $12.47 for Medicare tax. His gross pay was
 
a. $860
b. $684
c. $750.
d. $794.
   
Publication 15, Circular E contains withholding information
 
a. for social security and Medicare taxes only.
b. for federal income taxes only
c. for social security, Medicare, and federal income tax taxes.
d. for federal and state income taxes.
   
An employee whose regular hourly rate is $12 and whose overtime rate is 1.5 times the regular rate worked 48 hours in one week.
The total overtime earned by the employee for the week is
 
a. $48.
b. $144
c. $96.
d. $480.
   
Michael Miller is paid twice a month and had total gross earnings as of 10/15 of $116,800. His gross earnings for the period ending 10/31 were $6,000.
If social security taxes are 6.2% on a maximum earnings of $122,700 per year and Medicare tax is 1.45% on all earnings,
how much social security tax will be paid by Michael and how much will be paid by his employer for the period ending 10/31?
 
a. Michael will pay $105.40 and his employer is not required to pay any social security tax.
b. Michael will pay $372.00 and his employer will also pay $372.00.
c. Michael will pay $365.80 and his employer will also pay $365.80
d. Michael will pay $372.00 and his employer will pay $105.40.
   
Which of the following is a factor in the determination of the amount of social security tax to withhold from an employee's pay?
 
a. hours worked during the pay period
b. marital status
c. withholding allowances claimed on Form W-4
d. gross wages
   
Social Security Tax is 6.2%; Medicare Tax is 1.45% and federal and state unemployment compensation taxes total 5.4% (both added together);
the federal income tax for the month is $250 and the state income taxes for the month is $40.
If employee George Glass earned $2,500 for the current month and he has not reached any maximums for taxes,
what are the total employee payroll taxes withheld for the current month?
 
a. $616.25
b. $481.25
c. $326.25
d. $290.00
   
All details related to an employee's earnings, deductions, and net pay throughout the year would be found in
 
a. the payroll register.
b. the individual earnings record
c. the general journal.
d. the Wages Expense account in the general ledger.
   
Lacy Crawford has a regular hourly rate of $21.50. In a week when she worked 40 hours and had deductions of $110 for federal income tax,
$53.32 for social security tax, and $12.47 for Medicare tax, her net pay was
 
a. $860.00
b. $684.21
c. $750.00
d. $794.21
   
Each type of deduction made from the employees' earnings is recorded in a separate
 
a. liability account
b. expense account.
c. asset account.
d. revenue account.
   
Which of the following statements is correct?
 
a. A company is required to withhold various employee taxes from amounts paid independent contractors.
b. The accountant who performs the independent audit for a company is an employee of the company.
c. All employees must be paid no more than the minimum wage rate set by the Fair Labor Standards Act.
d. Disability benefits for the worker and the worker's dependents are provided by the Federal Insurance Contributions Act
   
ABC Grocers uses a separate checking account to pay their employees. The gross pay for the period was $850.
However, after deductions were taken out, the net pay for the period was $790.
The journal entry to record the issuance of payroll checks to their employees would include:
 
a. a debit to Salaries Expense for $790
a debit to Salaries Payable for $850
a debit to Salaries Payable for $790
a credit to Salaries Payable for $850
   
How are social security benefits financed?
a. All social security benefits are from dollars withheld from employee pay.
b. Employers totally fund social security
c. State government fund social security
d. Employees and employers both fund social security.
   
The purpose of FUTA is to provide benefits for
a. Employees who became unemployed
b. Employees who became injured while on the job
c. Retired workers
d. Disabled employees
   
Who pays the social security tax?


a. Employee only
b. Employer only
c. Both employee and employer
d. None of the above
   
Which one of the following is not a required deduction from payroll required by federal law?


a. FUTA tax
b. Social Security tax
c. Federal Income tax
d. Medicare tax
   
Which factor(s) does not determine the amount of federal income tax to be withheld from an employee's earnings?


a. State where employee lives
b. Number of dependents the employee claims
c. Marital status
d. The frequency of payroll payments.
   
Which of the following is recorded on an individual earnings record?


a. Gross Earnings each pay period
b. Federal Income tax withheld each pay period
c. Social Security tax withheld each pay period
d. All of these are correct
   
How much social security tax is withheld from an employee who earns $3,400 during the current payroll period, and who has earned
$131,900 during the year prior to the current pay period, given that the maximum earnings threshold for social security is $132,900?

a. $62
b. $148.80
d. $210.80
c. $8817.80
   
Which of the following statements is not correct?

a. The Medicare tax is levied on both the employee and the employer
b. To compute the Medicare tax to withhold from the employee's paycheck, multiply the net wages by the Medicare tax rate of 1.45%
c. If an employee works for more than one employer during the year, the FICA tax is deducted and matched by each employer
d. All employee earnings are subject to Medicare tax.
   
Which of the following pieces of information is not required to use the wage-bracket table method of determining federal income tax withholding?


a. Prior period earnings for the current year
b. Marital status
c. Number of withholding allowances
d. Length of pay period.
   
Details related to all employees' gross earnings, deductions, and net pay for a period are found in the


a. Payroll register
b. Individual earnings record
c. General journal
d. Cash payments journal
   
Payroll deductions are recorded in a separate:
a. Asset account
b. Expense account
c. Liability account
d. Revenue account
   
Which of the following statements is not correct?


a. The amount of social security tax withheld depends on an employee's gross earnings, marital status, and number of withholding allowances
b. Federal law requires that social security, Medicare, and federal income taxes be deducted from the gross pay of the employees
c. Medicare taxes are levied in an equal amount on both employers and employees
d. Once an employee's year-to-date wages reach a certain amount prescribed by law, social security tax is no longer withheld
   
Which of the following statements is correct?


a. A company is required to withhold various employee taxes from amounts paid to independent contractors
b. The accountant who performs the independent audit for a company is an employee of the company
c. All employees must be paid at the minimum wage rate set by the Fair Labor Standards Act
d. Disability benefits for the worker's dependents are provided by the Federal Insurance Contributions Act.
   
Which of the following statements is not correct?


a. The FUTA tax provides benefits for employees who become unemployed
b. The FUTA tax is both withheld form employees' earnings and paid by the employer
c. The FUTA tax rate should be as low as 0.6%
d. The state unemployment taxes are paid entirely by the employer
   
An employee whose regular hourly rate is $12 and whose overtime rate is 1.5 times the regular rate worked 43 hours in one week.
In the payroll register, the employer should record overtime earnings as


a. $18
b. $54
c. $258
d. $774
   
Which of the following statements about the payroll register is not correct?


a. The payroll register supplies all the information to make the journal entry to record the payroll
b. The hours worked and the pay rate used to calculate regular pay, overtime earnings, and gross pay
c. The cumulative earnings after this pay period are computed by adding the beginning cumulative earnings and the current period's gross pay
d. The deductions are added to the gross earnings to compute Net Amount, which is the amount paid to each employee
   
Which of the following is not a component of the initial journal entry to record payroll?


a. A credit to salaries and wages payable
b. A credit to social security tax payable
c. A credit to employee income tax payable
d. A credit to salaries and wages expense
   
All details related to an employee's earnings, deductions, and net pay throughout the year would be found in


a. The Wages Expense account in the general ledger
b. The individual earnings record
c. The general journal
d. The payroll register
   
An employee whose regular hourly rate is $8 and whose overtime rate is 1.5 times the regular rate, worked 41 hours in one week.
What is this employee's gross earnings for the weekly pay period?


a. $328
b. $332
c. $488
d. $492
   
An employee earns gross pay of $720 during the current pay period. Taxes associated with these earnings include a federal withholding
tax of $45, state withholding tax of $18, social security tax of $44.64, Medicare tax of $10.44, FUTA tax of $4.32, and SUTA tax of $38.88.
What is the employee's net pay for the current period?


a. $558.72
b. $601.92
c. $615.60
d. $720.00
   
What does being classified an "exempt" employee mean?


a. Level of dangerous work being performed by employees
b. Can take off work any time desired
c. Employee does not have to pay Medicare tax
d. Generally speaking, not eligible for any overtime pay
   
Which of the following affects the amount of Medicare tax to be withheld from an hourly rate employee's pay?


a. Medical insurance premium
b. Marital status
c. Withholding allowance claimed on W-4
d. Hours worked resulting in higher gross pay
   
Stacy Carter worked 48 hours during the week ending November 17. Her regular rate is $9 per hour. Calculate her gross earnings for the week.


a. $432
b. $492
c. $468
d. $444
   
What is (are) a good reason(s) for using a payroll bank account for payroll that is separated from your operating bank account?


a. Easier to audit payroll transactions.
b. Easier to find an individual's payroll transaction if check is lost
c. Quicker bank reconciliation of payroll checking accounts
d. All of the choices are correct
   
What accounts are affected when payroll checks are written?


a. Cash is debited for gross earnings
b. Cash is credited for gross earnings
c. Federal Income Tax is debited
d. Accounts Payable is credited.
   
What is "time and a half"?


a. 11:30 am
b. 150% times employee base rate of pay
c. the FUTA rate of tax on quarterly earnings
d. means you owe federal income tax plus another 50%
   
How are unemployment insurance benefits financed?


a. They are financed by taxing the employee and withholding from gross earnings.
b. Employers pay the entire tax based on an amount determined by state and federal governments.
c. The total cost of unemployment (FUTA and SUTA) is shared equally by employees and employers
d. Congress allocates fund to pay all cost related to unemployment benefits
   
The rate of the social security tax has remained constant for many years at ___%.
 
6.2
   
Payroll deductions are recorded in a separate
 
liability account.
   
Details related to all employees' gross earnings, deductions, and net pay for a period are found in the
 
payroll register.
   
An employee whose regular hourly rate is $8 and whose overtime rate is 1.5 times the regular rate worked 41 hours in one week.
What is this employee's gross earnings for the weekly pay period?
 
$332
   
An employee earns gross pay of $720 during the current pay period. Taxes associated with these earnings include federal
withholding tax of $45, state withholding tax of $18, social security tax of $44.64, Medicare tax of $10.44, FUTA tax of $4.32,
and SUTA tax of $38.88. What is this employee's net pay for the current pay period?
 
$601.92
   
In recent years, the Medicare tax rate has remained constant at ____%
 
1.45
   
Employees pay payroll tax liabilities by
 
The withholding of the tax from the periodic wage payment
   
Employers pay payroll tax liabilities by
 
The deposits/filing and reporting on the appropriate forms
   
When dealing with independent contractors, businesses do not have to follow federal labor laws regulating...
 
minimum rates of pay and maximum hours of employment.
   
Which of the following affects the amount of Medicare tax to be withheld from an hourly rate employee's pay?
 
hours worked resulting in higher gross pay
   
Stacy Carter worked 48 hours during the week ending November 17. Her regular rate is $9 per hour.
Calculate her gross earnings for the week.
 
$468
   
Which of the following is not a component of the initial journal entry to record payroll?
 
A credit to salaries and wages expense
   
A business is not required to withhold or match payroll taxes on amounts paid to ______________.
 
Independent contractors
   
An employee whose regular hourly rate is $12 and whose overtime rate is 1.5 times the regular rate worked 43 hours
in one week. In the payroll register, the employer should record overtime earnings of
 
$54.
   
The Fair Labor Standards Act of 1938, often referred to as the Wage and Hour Law or FLSA, applies only to firms engaged
directly or indirectly in _____________.
 
 
Interstate commerce
   
What does the Fair Labor Standards Act of 1938 do?
 
Sets a minimum hourly rate of pay and maximum hours of work per week to be performed at that rate of pay.
   
Which of the following pieces of information is not required to use the wage-bracket table method of determining federal income tax withholding?
 
prior period earnings for the current year
   
How much social security tax is withheld from an employee who earns $3,400 during the current payroll period, and who
has earned $131,900 during the year prior to the current pay period, given that the maximum earnings threshold for social security tax is $132,900?
 
$62
   
Which of the following statements is not correct?
 
The FUTA tax is both withheld from employees' earnings and paid by the employer.
   
Which one of the following is not a required deduction from payroll required by federal law?
 
FUTA tax
   
Which factor(s) does not determine the amount of federal income tax to be withheld from an employee's earnings?
 
state where employee lives
   
What does being classified an "exempt" employee mean?
 
not eligible for any overtime pay
   
Employee income tax withholding is designed to place employees on a ___________ basis in paying their federal income tax.
 
Pay-as-you-go