Percent of social security tax charged

Question

Question 1. The pay period intervals biweekly and semimonthly are similar in that the same number of pay periods occur in either method.

• True
• False

Question 2. A salaried employee is paid the same amount of money even though the hours worked may vary from pay period to pay period.

• True
• False

Question 3. Carrie Blue earns a salary of $26,480.00 per year. If Carrie is paid biweekly, her gross paycheck would be $1,190.00.

• True
• False

Question 4. An employee's overtime rate of pay is normally 1.2 times the regular hourly rate.

• True
• False

Question 5. Gross wages = days worked × rate per hour.

• True
• False

Question 6. The percent of social security tax charged and the amount of salary subject to the tax can change from year to year.

• True
• False

Question 7. Employee contributions to medicare are limited on an annual basis.

• True
• False

Question 8. Wages that are not taxable are referred to as "exempt wages."

• True
• False

Question 9. If you receive paychecks 12 times a year at fixed intervals, you are probably being paid:

• weekly
• bimonthly
• biweekly
• monthly
• none of the above

Question 10. If Kevin is paid an hourly rate of $18.90 and he earns one and one half times his regular rate for overtime, his overtime rate would be:

• $22.45
• $28.35
• $18.90
• $9.45
• none of the above

Question 11. A variable commission scale is normally based on:

• gross sales
• a different commission for different levels of sales
• fixed commission rates
• a fixed level of sales
• none of the above

Question 12. Patrick is an automobile salesman who receives a salary of $550.00 per week plus a commission of 5 percent on all sales. During a 4-week period he sold $49,500.00 worth of cars. What were Patrick's average earnings?

• $872.90
• $550.00
• $1,550.00
• $1,168.75
• none of the above

Question 13. Social security and medicare are:

• calculated based upon the W-4 form
• only paid by the employer
• withheld from the employee's paycheck and matched by the employer
• only paid by the employee
• none of the above

Question 14. The amount of federal income tax to be withheld from employee's paychecks can be calculated by:

• either the percentage method or the wage-bracket table method
• the percentage-bracket method
• only by the percentage method
• only by the wage-bracket method
• none of the above

Question 15. The withholding of 7.65% of the first $87,900 of earnings in a year includes:

• medicaid tax
• medicare tax
• social security and medicare tax
• social security tax
• none of the above