Question 1

Natalia is a full-time exempt employee who earns $215,000 annually,paid monthly.Her year-to-date pay as of November 30 is $197,083.30.How much will be withheld from Natalia for FICA taxes for the December 31 pay date? (Social Security maximum wage is $118,500.Do not round interim calculations,only round final answer to two decimal points.)
A) $292.04
B) $394.79
C) $1,370.63
D) $421.04

Accepted Answer

The answer of Natalia is a full-time exempt employee who...

Question 2

Wyatt is a full-time exempt music engineer who earns $130,000 annually and is paid semimonthly.As of November 15,his year-to-date gross pay was $113,750.07.How much will be withheld for FICA taxes for the November 30 pay date? (Social Security maximum wage is $118,500.Do not round interim calculations,only round final answer to two decimal points.)
A) $335.83
B) $414.37
C) $212.88
D) $373.04

Accepted Answer

The answer of Wyatt is a full-time exempt music engineer...

Question 3

Adam is a part-time employee who earned $495.00 during the most recent pay period.He is married with two withholding allowances.Prior to this pay period,his year-to-date pay is $6,492.39.How much should be withheld from Adam's gross pay for Social Security tax?
A) $40.02
B) $30.69
C) $37.92
D) $28.46

Accepted Answer

The answer of Adam is a part-time employee who earned...

Question 4

Melody is a full-time employee who earns $3,600 per month and is paid semimonthly.She is married with 1 withholding allowance (use the wage-bracket tables).She has a qualified health insurance deduction of $50 per pay period and contributes 3% to her 401(k),both of which are Identify Pre-Tax Deductions .What is her net pay? (Do not round interim calculations,only round final answer to two decimal points.) 
A) $1,696.00
B) $1,524.27
C) $1,426.13
D) $1,394.87

Accepted Answer

The answer of Melody is a full-time employee who earns...

Question 5

Olga earned $1,558.00 during the most recent weekly pay period.She is single with 2 withholding allowances.Using the percentage method,compute Olga's Federal income tax for the period.(Do not round intermediate calculations.Round final answer to two decimal places.)
$\begin{array}{c}
\begin{array}{|l|}
\hline\text {Payroll Period}\
\
\hline\text {Weekly}\
\text {Biweekly}\
\text {Semimonthly}\
\text {Monthly}\
\text {Quarterly}\
\text {Semiannually}\
\text {Annually}\
\text {Daily or miscellaneous (each day of the payroll }\
\text {period)}\
\hline
\end{array}
\begin{array}{r|}
\hline\text {One Withholding}\
\text {Allowance}\
\hline\$ 76.90 \
 153.80 \
 166.70 \
 333.30 \
 1,000.00 \
2,000.00 \
 4,000.00 \
\
 15.40 \
\hline
\end{array}
\end{array}$
 
A) $259.15
B) $339.25
C) $295.65
D) $314.75

Accepted Answer

The answer of Olga earned $1,558.00 during the most recent...

Question 6

Warren is a married employee with six withholding allowances.During the most recent biweekly pay period,he earned $9,450.00.Using the percentage method,compute Warren's Federal income tax.(Do not round interim calculations,only round final answer to two decimal points.) $\begin{array}{c}
\begin{array}{|l|}
\hline\text {Payroll Period}\
\
\hline\text {Weekly}\
\text {Biweekly}\
\text {Semimonthly}\
\text {Monthly}\
\text {Quarterly}\
\text {Semiannually}\
\text {Annually}\
\text {Daily or miscellaneous (each day of the payroll }\
\text {period)}\
\hline
\end{array}
\begin{array}{r|}
\hline\text {One Withholding}\
\text {Allowance}\
\hline\$ 76.90 \
 153.80 \
 166.70 \
 333.30 \
 1,000.00 \
2,000.00 \
 4,000.00 \
\
 15.40 \
\hline
\end{array}
\end{array}$
 
A) $2,490.15
B) $2,156.90
C) $1,796.94
D) $1,602.25

Accepted Answer

The answer of Warren is a married employee with six...

Question 7

Caroljane earned $1,120 during the most recent pay biweekly pay period.She contributes 4% of her gross pay to her 401(k) plan.She is single and has 1 withholding allowance.Based on the following table,how much Federal income tax should be withheld from her pay? 
A) $115.00
B)$106.00
C) $112.00
D) $109.00

Accepted Answer

The answer of Caroljane earned $1,120 during the most recent...

Question 8

According to the Consumer Credit Protection Act,what is the maximum percentage of an employee's disposable earnings that may be withheld as part of a consumer credit garnishment?
A) 25%
B) 35%
C) 50%
D) 40%

Accepted Answer

The Consumer Credit Protection Act limits the amount of an employee's disposable earnings that may be garnished to 25% of their disposable earnings or the amount by which their disposable earnings exceed 30 times the federal minimum wage, whichever is less.

Question 9

Andie earned $680.20 during the most recent weekly pay period.She is single with 3 withholding allowances and needs to decide between contributing 2.5% and $25 to her 401(k) plan.If she chooses the method that results in the lowest taxable income,how much will be withheld for Federal income tax (based on the following table)? 
A) $58.00
B) $60.00
C) $48.00
D) $47.00

Accepted Answer

To find out the best choice that results in the lowest taxable income, we need to calculate the total amount contributed to the 401(k) plan using both options.

Option 1: Contributing 2.5%
2.5% of $680.20 = $17.01

Option 2: Contributing $25
$25 < 2.5% of $680.20
So, we choose option 2.

Total taxable income = $680.20 - $25 = $655.20

Using the given table, the Federal income tax taken out for a single person with 3 allowances earning $655.20 per week is $48.00.

Therefore, the answer is C) $48.00.

Question 10

Ross is a full-time employee who earns $42,000 annually,paid semimonthly.His Federal income tax is $155.00.What is the maximum amount that may be withheld from his pay for a child-support garnishment,assuming he is not in arrears? (Do not round interim calculations,only round final answer to two decimal points.)
A) $365.28
B) $730.56
C) $584.45
D) $876.68

Accepted Answer

First, we need to find Ross's gross semimonthly income: 
$42,000 / 24 = $1,750

Next, we need to calculate his semimonthly child-support garnishment using the federal formula: 
$1,750 x 50% = $875

However, we must also consider Ross's federal income tax withholding of $155: 
$875 - $155 = $720

Therefore, the maximum amount that may be withheld from Ross's pay for a child-support garnishment is $720, which corresponds to choice B.

Question 11

Trish earned $1,734.90 during the most recent semimonthly pay period.She is married and has 3 withholding allowances.Based on the following table,how much should be withheld from her gross pay for Federal income tax? 
A) $92.00
B) $89.00
C) $95.00
D) $69.00

Accepted Answer

The answer of Trish earned $1,734.90 during the most recent...

Question 12

Disposable income is defined as:
A) An employee's net pay less living expenses like rent and utilities.
B) An employee's taxable income less Understand Post-Tax Deductions.
C) An employee's gross pay less Identify Pre-Tax Deductions.
D) An employee's pay after legally required deductions have been withheld.

Accepted Answer

Disposable income is the amount of money an individual has left to spend or save after all legally required deductions have been made from their gross pay. Therefore, option D is correct as it explains disposable income as an employee's pay after legally required deductions have been withheld. Option A, B, and C are incorrect as they do not accurately describe disposable income.

Question 13

Max earned $1,019.55 during the most recent semimonthly pay period.He is single with 1 withholding allowance.Using the following table,how much should be withheld for Federal income tax? 
A) $118.00
B) $94.00
C) $96.00
D)$93.00

Accepted Answer

The answer of Max earned $1,019.55 during the most recent...

Question 14

Jeannie is an adjunct faculty at a local college,where she earned $680.00 during the most recent semimonthly pay period.She is single and has one withholding allowance.What is her Social Security tax for the pay period?
A) $48.02
B) $39.24
C) $44.18
D) $42.16

Accepted Answer

The answer of Jeannie is an adjunct faculty at a...

Question 15

Renee is a salaried exempt employee who earns an annual salary of $64,200,which is paid semimonthly.She is married with four withholding allowances.What is her total FICA tax liability per pay period? (Do not round interim calculations,only round final answer to two decimal points.)
A) $165.85
B) $38.79
C) $204.64
D) $409.28

Accepted Answer

The answer of Renee is a salaried exempt employee who...

Question 16

Julio is single with 1 withholding allowance.He earned $1,025.00 during the most recent semimonthly pay period.He needs to decide between contributing 3% and $30 to his 401(k) plan.If he chooses the method that results in the lowest taxable income,how much will be withheld for Federal income tax (based on the following table)? 
A) $65.00
B) $87.00
C) $90.00
D) Both yield the same tax amount

Accepted Answer

The answer of Julio is single with 1 withholding allowance.He...

Question 17

Julian is a part-time employee who earns $21.50 per hour.During the last biweekly pay period he worked 45 hours.He is single with one withholding allowance (use the wage-bracket table).What is his net pay? (Do not round interim calculations,only round final answer to two decimal points.) 
A) $818.40
B) $797.18
C) $825.99
D) $802.49

Accepted Answer

The answer of Julian is a part-time employee who earns...

Question 18

Steve is a full-time exempt employee at a local electricity co-operative.He earns an annual salary of $43,325 and is paid biweekly.What is his Social Security tax deduction for each pay period? (Do not round interim calculations,only round final answer to two decimal points.)
A) $123.95
B) $103.31
C) $98.67
D) $106.34

Accepted Answer

To calculate Steve's Social Security tax deduction, we first need to determine his gross pay for each pay period. Since he is paid biweekly, we divide his annual salary by 26 (the number of biweekly pay periods in a year):

$43,325 / 26 = $1,666.35

Next, we need to determine the Social Security tax rate, which is currently 6.2% of gross pay. So:

$1,666.35 x 0.062 = $103.31

Therefore, Steve's Social Security tax deduction for each pay period is $103.31.

The best choice is B, $103.31, as it is the correct calculation based on the given information.

Question 19

Paolo is a part-time security guard for a local facility.He earned $298.50 during the most recent weekly pay period.He is married with four withholding allowances.What is his Medicare tax liability for the pay period?
A) $43.23
B) $10.54
C) $8.65
D) $4.33

Accepted Answer

The answer of Paolo is a part-time security guard for...

Question 20

Ramani earned $1,698.50 during the most recent biweekly pay period.He contributes $100 to his 401(k) plan.He is married and claims 3 withholding allowances.Based on the following table,how much Federal income tax should be withheld from his pay? 
A) $122.00
B) $107.00
C) $99.00
D) $84.00

Accepted Answer

The answer of Ramani earned $1,698.50 during the most recent...

Quiz 4: Employee Net Pay and Pay Methods

Adam is a part-time employee who earned $495.00 during the most recent pay period.He is married with two withholding allowances.Prior to this pay period,his year-to-date pay is $6,492.39.How much should be withheld from Adam's gross pay for Social Security tax?

Caroljane earned $1,120 during the most recent pay biweekly pay period.She contributes 4% of her gross pay to her 401(k) plan.She is single and has 1 withholding allowance.Based on the following table,how much Federal income tax should be withheld from her pay?

According to the Consumer Credit Protection Act,what is the maximum percentage of an employee's disposable earnings that may be withheld as part of a consumer credit garnishment?

Trish earned $1,734.90 during the most recent semimonthly pay period.She is married and has 3 withholding allowances.Based on the following table,how much should be withheld from her gross pay for Federal income tax?

Disposable income is defined as:

Max earned $1,019.55 during the most recent semimonthly pay period.He is single with 1 withholding allowance.Using the following table,how much should be withheld for Federal income tax?

Jeannie is an adjunct faculty at a local college,where she earned $680.00 during the most recent semimonthly pay period.She is single and has one withholding allowance.What is her Social Security tax for the pay period?

Renee is a salaried exempt employee who earns an annual salary of $64,200,which is paid semimonthly.She is married with four withholding allowances.What is her total FICA tax liability per pay period? (Do not round interim calculations,only round final answer to two decimal points.)

Julian is a part-time employee who earns $21.50 per hour.During the last biweekly pay period he worked 45 hours.He is single with one withholding allowance (use the wage-bracket table) .What is his net pay? (Do not round interim calculations,only round final answer to two decimal points.)

Steve is a full-time exempt employee at a local electricity co-operative.He earns an annual salary of $43,325 and is paid biweekly.What is his Social Security tax deduction for each pay period? (Do not round interim calculations,only round final answer to two decimal points.)

Paolo is a part-time security guard for a local facility.He earned $298.50 during the most recent weekly pay period.He is married with four withholding allowances.What is his Medicare tax liability for the pay period?

Ramani earned $1,698.50 during the most recent biweekly pay period.He contributes $100 to his 401(k) plan.He is married and claims 3 withholding allowances.Based on the following table,how much Federal income tax should be withheld from his pay?