Question 1

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 specifically a 12-month period that begins on January 1 and ends on December 31. It is not necessarily the same as a company's fiscal year, which can begin and end on any date chosen by the company. Option A is too broad and Option C is incorrect.

Question 2

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 FICA-OASDI and FICA-Medicare taxes:
FICA-OASDI tax = Gross pay x 6.2% = 750 x 0.062 = $46.50
FICA-Medicare tax = Gross pay x 1.45% = 750 x 0.0145 = $10.88
Next, we need to subtract federal and state income taxes from the gross pay:
Gross pay - Federal income tax - State income tax = 750 - 71 - 5 = $674
Finally, we can calculate the net earnings by subtracting FICA taxes from the previous result:
Net earnings = Gross pay - FICA-OASDI tax - FICA-Medicare tax = 674 - 46.50 - 10.88 = $616.62
Therefore, the best choice is C.

Question 3

Carrie Stein's hourly wage is $40.00,and she worked 42 hours during the week.Assuming an overtime rate of time and a half over 40 hours,Carrie's gross pay is:
A)$1,780.
B)$1,720.
C)$2,580.
D)$1,600.

Accepted Answer

Carrie earns $40.00 per hour for the first 40 hours, totaling $1,600. For the 2 hours of overtime, she earns time and a half, which is $40.00 * 1.5 = $60.00 per hour. Thus, for 2 hours, she earns $120.00. Adding her overtime pay to her regular pay gives $1,600 + $120 = $1,720.

Question 4

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 is the amount of money an employee receives after deductions such as taxes, insurance, and retirement contributions are taken out of their gross pay. Therefore, net pay is also known as take-home pay, which is the amount an employee actually takes home with them after all deductions are made.

Question 5

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)None of these answers are correct.

Accepted Answer

The W-4 form is what an employee fills out to indicate to their employer how much federal income tax should be withheld from their paychecks. Information such as number of dependents and marital status are taken into account when determining the amount of tax to be withheld. The W-2 form is given to the employee at the end of the year and shows how much they earned and how much was withheld for taxes. The 1040 form is used by individuals to file their tax return and report their income and any tax owed or refund due. Therefore, A is the correct answer.

Question 6

A summary record of each person's earnings,deductions,and net pay is called a(n):
A)payroll register.
B)W-4.
C)employee individual earnings record.
D)general journal.

Accepted Answer

An employee individual earnings record is a document that summarizes an employee's earnings, deductions, and net pay. It is also commonly referred to as a pay stub or paycheck stub. A payroll register is a document that summarizes the total payroll for a certain period of time and includes all employees, whereas a W-4 is a form that employees fill out to indicate their tax withholding preferences. A general journal is a book where all financial transactions are recorded.

Question 7

Derek works 43 hours at a rate of pay of $15 per hour.He receives double pay over 40 hours.What is his gross pay?
A)$800
B)$720
C)$780
D)$690

Accepted Answer

The answer of Derek works 43 hours at a rate...

Question 8

Which of the following would not typically be an employee payroll withholding?
A)Unemployment taxes
B)Medical Insurance
C)State income tax
D)Social Security

Accepted Answer

Unemployment taxes are typically employer-paid taxes and are not withheld from employee paychecks. Employees are responsible for contributions to Social Security, state income tax, and may opt for medical insurance deductions, but unemployment taxes are paid by the employer to the state and federal government, not deducted from employee wages.

Question 9

Kathy Addington earns $72,000 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 $85 per month?
A)$4,100
B)$4,256
C)$4,326
D)$4,293

Accepted Answer

The answer of Kathy Addington earns $72,000 per year.What is...

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 wages earned for the year.

Accepted Answer

The W-4 form provides the number of allowances an employee has claimed, which determines the amount of federal income tax to be withheld from their paycheck. While it does relate to taxes, it does not determine the amount of FICA-OASDI or FICA-Medicare to be withheld, and it does not show total wages earned for the year.

Question 11

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 Hourly Law.

Accepted Answer

The Fair Labor Standards Act is also known as the Federal Wage and Hour Law as it establishes minimum wage, overtime pay, record-keeping, and child labor standards for employees in the private sector and federal, state, and local governments. A is incorrect as it refers to the Social Security Act, C is incorrect as it refers to the law that governs federal income tax, and D is not a commonly used name for the FLSA.

Question 12

Employers pay the following payroll taxes,except:
A)FICA-OASDI.
B)Federal income tax.
C)Workers' Compensation.
D)FICA-Medicare.

Accepted Answer

Federal income tax is not a payroll tax paid by employers, but is instead a tax withheld from employees' paychecks and remitted to the government by the employer. Employers do pay FICA-OASDI, FICA-Medicare, and Workers' Compensation taxes.

Question 13

On January 15,Robert Love earned $4,000 and has the following deductions: FICA-OASDI 6.2%,FICA-Medicare 1.45%; federal income tax of $200; and state income tax $40.What is his net pay?
A)$3,400
B)$3,454
C)$4,454
D)$$4,000

Accepted Answer

- FICA-OASDI deduction = 6.2% of $4,000 = $248
- FICA-Medicare deduction = 1.45% of $4,000 = $58
- Total deductions = $200 + $40 + $248 + $58 = $546
- Net pay = $4,000 - $546 = $3,454

Question 14

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 answer of Which of the below allowances would have...

Question 15

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...

Question 16

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 at double time, he earns an additional $160 ($40 x 4). Thus, his gross earnings are $960. Subtracting the $200 in taxes, his net earnings are $760.

Question 17

Valerie Chandler works 42 hours as a coffee barista and earns $12 per hour.Compute her weekly pay assuming an overtime rate of 1.5.
A)$552
B)$516
C)$480
D)$624

Accepted Answer

Valerie earns $12 per hour for the first 40 hours and 1.5 times her hourly rate for the 2 overtime hours. Her pay is (40 * $12) + (2 * $12 * 1.5) = $480 + $36 = $516.

Question 18

Bob Hill's hourly rate is $25.00,and he worked 38 hours during the week.What is his gross pay for the week?
A)$950
B)$780
C)$1,000
D)$975

Accepted Answer

To find Bob Hill's gross pay for the week, we need to multiply his hourly rate of $25.00 by the number of hours he worked, which is 38.

Gross pay = hourly rate x number of hours worked
Gross pay = $25.00 x 38
Gross pay = $950

Therefore, the best choice is A) $950.

Question 19

Kim received $1,850 for working 40 hours.What was Kim's rate of pay per hour?
A)$46.25
B)$44.00
C)$45.00
D)$40.00

Accepted Answer

To find Kim's rate of pay per hour, divide the total amount earned by the number of hours worked. 
$1,850 ÷ 40 hours = $46.25 per hour. Therefore, the answer is choice A, $46.25.

Question 20

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

Accepted Answer

FICA-OASDI and FICA-Medicare withholding amounts are determined based on the employee's earnings for the period and cumulative earnings, which are reported on the employee's paycheck. The W-4 form is used to determine federal income tax withholding, not FICA withholding. Take-home pay and net pay are the amounts the employee ultimately receives after all deductions, including FICA, have been taken out.

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

A calendar year is:

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.

Carrie Stein's hourly wage is $40.00,and she worked 42 hours during the week.Assuming an overtime rate of time and a half over 40 hours,Carrie's gross pay is:

Net pay is the same as:

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

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

Derek works 43 hours at a rate of pay of $15 per hour.He receives double pay over 40 hours.What is his gross pay?

Which of the following would not typically be an employee payroll withholding?

Kathy Addington earns $72,000 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 $85 per month?

A W-4 form:

Another name for the Fair Labor Standards Act is:

Employers pay the following payroll taxes,except:

On January 15,Robert Love earned $4,000 and has the following deductions: FICA-OASDI 6.2%,FICA-Medicare 1.45%; federal income tax of $200; and state income tax $40.What is his net pay?

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

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?

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) ?

Valerie Chandler works 42 hours as a coffee barista and earns $12 per hour.Compute her weekly pay assuming an overtime rate of 1.5.

Bob Hill's hourly rate is $25.00,and he worked 38 hours during the week.What is his gross pay for the week?

Kim received $1,850 for working 40 hours.What was Kim'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: