Question 1

Publication 15,Circular E contains federal income tax withholding tables.

Accepted Answer

Publication 15, also known as Circular E, contains federal income tax withholding tables for employers to use when calculating the amount of federal income tax to withhold from employees' paychecks.

Question 2

Employees submit Form W-4 to their employers to show the number of withholding allowances they claim for federal income tax withholding purposes.

Accepted Answer

This is true. Employees are required to submit Form W-4 to their employers to indicate the number of withholding allowances they wish to claim. This information is used to determine how much federal income tax will be withheld from their paychecks.

Question 3

One who is hired by an employer and who is under the control and direction of the employer is called a(n)___________________.

Accepted Answer

employee

Question 4

Time sheets or time cards are used to keep a record of hours worked each day by each employee paid on an hourly basis.

Accepted Answer

Time sheets or time cards are indeed used to keep a record of hours worked each day by each employee paid on an hourly basis.

Question 5

The net amount due employees for their wages is recorded as a debit to Salaries and Wages Payable.

Accepted Answer

The net amount due to employees for their wages is recorded as a credit to Salaries and Wages Payable, as it represents a liability the company owes to its employees. A debit would be recorded to Salaries and Wages Expense to reflect the cost of employee services.

Question 6

Employers are required to pay workers' ____________________ insurance that will reimburse employees for losses suffered from job-related injuries.

Accepted Answer

The answer of Employers are required to pay workers' ____________________...

Question 7

Because salaried employees who hold supervisory or managerial positions generally are not subject to wage and hour laws,they are known as ____________________ employees.

Accepted Answer

The answer of Because salaried employees who hold supervisory or...

Question 8

The overtime rate is one and one-half times the regular hourly rate.

Accepted Answer

This is true according to most labor laws and collective bargaining agreements. Employees typically receive time and a half their regular hourly rate for any hours worked beyond their scheduled shift or workweek.

Question 9

The Medicare tax is levied to provide medical care for the employee and the employee's spouse after they reach age 65.

Accepted Answer

The Medicare tax is collected to help fund healthcare services for individuals who are 65 years or older, as well as those with disabilities or certain medical conditions. It is not limited to just the employee and their spouse, but rather is intended to support the general population.

Question 10

An independent ____________________ is paid by the company to carry out a specific task or job but is not under the direct supervision,control,and direction of the company.

Accepted Answer

The answer of An independent ____________________ is paid by the...

Question 11

If an employee whose regular hourly rate is $9 and whose overtime rate is 1.5 times the regular rate works 42 hours in one week,the employee's gross pay is $378.

Accepted Answer

The answer of If an employee whose regular hourly rate...

Question 12

The employee's marital status is one factor that determines the amount of federal income tax withheld by the employer.

Accepted Answer

The employee's marital status is one of the factors that affect the amount of federal income tax withheld by the employer. Other factors include the employee's income, number of allowances claimed, and filing status.

Question 13

An employee whose regular hourly rate is $12 and whose overtime rate is 1.5 times the regular rate worked 45 hours in one week.The employer should record an overtime premium of ____________________ in the payroll register.

Accepted Answer

The answer of An employee whose regular hourly rate is...

Question 14

Withholding for federal income taxes places employees on a pay-as-you-go basis.

Accepted Answer

Withholding for federal income taxes requires employers to withhold a portion of an employee's wages to be deposited with the government on the employee's behalf. This helps ensure that employees pay their taxes throughout the year, rather than owing a large sum at tax time. This effectively puts employees on a pay-as-you-go basis for their federal income taxes.

Question 15

If an employee works for more than one employer during the year,the social security tax is deducted and matched by only one employer.

Accepted Answer

Each employer is required to deduct and match Social Security taxes without regard to what other employers may have deducted. The Social Security tax applies up to the annual wage limit for each job independently.

Question 16

Employees of firms engaged in interstate commerce must receive an overtime rate of at least 1.5 times the regular hourly rate of pay for time worked in excess of ____________________ hours per week.

Accepted Answer

The answer of Employees of firms engaged in interstate commerce...

Question 17

When a firm records its payroll,the amount of federal income tax withheld from employees is entered as a liability.

Accepted Answer

Federal income tax withheld from employees is a liability because the employer collects it on behalf of the employee and is required to remit it to the government. It is considered a liability until it is paid to the government.

Question 18

FICA tax is commonly referred to as ____________________ tax.

Accepted Answer

The answer of FICA tax is commonly referred to as...

Question 19

The maximum base for the social security tax is the same as that for the Medicare tax.

Accepted Answer

The maximum base for Social Security tax applies only to a certain amount of earnings, which is adjusted annually, whereas Medicare tax applies to all earnings without a maximum limit.

Question 20

A worker who is paid an agreed amount for each week or month or year is said to be paid on a(n)____________________ basis.

Accepted Answer

The answer of A worker who is paid an agreed...

Quiz 10: Payroll Computations, Records, and Payment