Question 1
Grammy's Bakery had the following information for the pay period ending June 30:
|
Employee Name
|
Pay Rate
|
Hours Worked
|
Cumulative Earnings
|
Department
|
Federal Income Tax Withheld
|
|
P. Ganster
|
$2,000
|
Salaried
|
$12,000
|
Kitchen
|
$86.00
|
|
T. Baker
|
10.00/hr
|
50
|
$6,500
|
Office
|
$22.00
|
Assume:
FICA-OASDI is applied to the first $106,800 at a rate of 6.2%.
FICA-Medicare is applied at a rate of 1.45%.
FUTA is applied to the first $7,000 at a rate of 0.8%.
SUTA is applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to Office Salaries Expense?
A. Debit of $550
B. Credit of $550
C. Debit of $500
D. Credit of $500
Question 2
When calculating the employee's payroll, the clerk forgot about the wage base limits. What impact could this error have on the employee's check?
A. FICA-OASDI could be overstated.
B. FUTA could be overstated.
C. SUTA could be overstated.
D. All of the above
Question 3
The law that governs overtime earnings is called the
A. Federal Insurance Contribution Act.
B. Federal Wage and Hour Law.
C. Fair Labor Standards Act.
D. Both b and c
Question 4
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
Question 5
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 of $40. What is his net pay?
A. $3,400
B. $3,454
C. $4,454
D. $4,000
Question 6
A summary record of each person's earnings, deductions, and net pay is called a/an
A. payroll register.
B. W-4.
C. employee individual earnings record.
D. general journal.
Question 7
What is debited if State Unemployment Tax Payable (SUTA) is credited?
A. Payroll Tax Expense
B. Cash
C. Salaries Payable
D. Salaries Expense
Question 8
Which of the following statements is false?
A. Payroll Tax Expense is an expense account.
B. FICA-Social Security Tax Payable increases on the credit side of the account.
C. Payroll Tax Expense increases on the debit side of the account.
D. SUTA Tax Payable increases on the debit side of the account.
Question 9
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
Question 10
The debit amount to Payroll Tax Expense represents
A. the employer's portion of the payroll taxes.
B. the employees' portion of the payroll taxes.
C. the employer's and employees' portion of the payroll taxes.
D. None of the above
Question 11
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.
Question 12
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 the above
Question 13
A company can deem an employee as salaried
A. if it doesn't want to pay overtime wages.
B. if the employee meets the salaried laws under the Fair Labor Standards Act.
C. to make the payroll process easier.
D. if the employee has been employed at the company for one year or longer.
Question 14
Wages and Salaries Expense is
A. equal to net pay.
B. equal to gross pay.
C. equal to the employer's taxes.
D. None of the above
Question 15
Gross earnings are the same as
A. regular earnings.
B. regular earnings plus overtime earnings.
C. net earnings.
D. net earnings plus overtime earnings.
Question 16
As the Prepaid Workers Compensation is recognized, the amount will transfer to
A. Workers Compensation Insurance Payable.
B. Workers Compensation Insurance Expense.
C. Cash.
D. Payroll Tax Expense.
Question 17
Brian Temple's cumulative earnings are $73,000, and his gross pay for the week is $5,300. If the FICA rates are OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week?
A. $0; $76.85
B. $328.60; $0
C. $328.60; $76.85
D. $3,286; $768.50
Question 18
Great Lakes Tutoring had the following payroll information on February 28:
|
Employee
|
Gross Pay
|
Cumulative Earnings Prior to This Payroll
|
|
R. Hill
|
$4,000
|
$4,000
|
Assume:
FICA tax rates are OASDI 6.2% on a limit of $106,800, and Medicare is 1.45%.
The state unemployment tax rate is 2% on the first $7,000.
The federal unemployment tax rate is 0.8% on the first $7,000.
Using the information above, the journal entry to record the payroll tax expense for Great Lakes Tutoring would include
A. a debit to Payroll Tax Expense in the amount of $390.
B. a credit to FUTA Payable for $24.
C. a credit to SUTA Payable for $60.
D. All of the above
Question 19
If Sheila worked 38 hours, how many hours of overtime did she earn?
A. Zero
B. One
C. Five
D. Nine
Question 20
A pay period is defined as
A. weekly.
B. biweekly.
C. monthly.
D. All of the above.