| Question 1 of 20 | 0.0/ 5.0 Points | 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 2 of 20 | 0.0/ 5.0 Points | 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 3 of 20 | 0.0/ 5.0 Points | Grammys 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 4 of 20 | 5.0/ 5.0 Points | If Sheila worked 38 hours, how many hours of overtime did she earn? | A. Zero | | | B. One | | | C. Five | | | D. Nine | | |
| Question 5 of 20 | 5.0/ 5.0 Points | 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 is $71.00, and state income tax is $5.00. | A. $615.00 | | | B. $610.00 | | | C. $616.62 | | | D. $672.12 | | |
| Question 6 of 20 | 5.0/ 5.0 Points | When calculating the employees payroll, the clerk forgot about the wage base limits. What impact could this error have on the employees check? | A. FICA-OASDI could be overstated. | | | B. FUTA could be overstated. | | | C. SUTA could be overstated. | | | D. All of the above | | |
| Question 7 of 20 | 5.0/ 5.0 Points | 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 8 of 20 | 0.0/ 5.0 Points | 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 9 of 20 | 0.0/ 5.0 Points | Wages and Salaries Expense is | A. equal to net pay. | | | B. equal to gross pay. | | | C. equal to the employers taxes. | | | D. None of the above | | |
| Question 10 of 20 | 5.0/ 5.0 Points | A company can deem an employee as salaried | A. if it doesnt 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 11 of 20 | 5.0/ 5.0 Points | The entry to record the payroll tax expense would include a | A. credit to Federal Income Taxes Payable. | | | B. credit to Cash. | | | C. credit to FICA (OASDI and Medicare) Taxes Payable. | | | D. credit to Wages Payable. | | |
| Question 12 of 20 | 5.0/ 5.0 Points | The amount of federal income tax withheld from an employee during the year is determined by the employees | A. W-4 form. | | | B. W-2 form. | | | C. 1040 form. | | | D. None of the above | | |
| Question 13 of 20 | 5.0/ 5.0 Points | The debit amount to Payroll Tax Expense represents | A. the employers portion of the payroll taxes. | | | B. the employees portion of the payroll taxes. | | | C. the employers and employees portion of the payroll taxes. | | | D. None of the above | | |
| Question 14 of 20 | 5.0/ 5.0 Points | To compute federal income tax to be withheld, | A. use the net earnings and number of allowances. | | | B. use gross earnings, number of allowances, and marital status. | | | C. use net earnings and Form W-4. | | | D. None of the above | | |
| Question 15 of 20 | 0.0/ 5.0 Points | 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 16 of 20 | 5.0/ 5.0 Points | A pay period is defined as | A. weekly. | | | B. biweekly. | | | C. monthly. | | | D. All of the above | | |
| Question 17 of 20 | 0.0/ 5.0 Points | What is debited if State Unemployment Tax Payable (SUTA) is credited? | A. Payroll Tax Expense | | | B. Cash | | | C. Salaries Payable | | | D. Salaries Expense | | |
| Question 18 of 20 | 5.0/ 5.0 Points | Which type of account is Wages and Salaries Payable? | A. Asset | | | B. Liability | | | C. Revenue | | | D. Expense | | |
| Question 19 of 20 | 5.0/ 5.0 Points | A summary record of each persons earnings, deductions, and net pay is called a/an | A. payroll register. | | | B. W-4. | | | C. employee individual earnings record. | | | D. general journal. | | |
| Question 20 of 20 | 5.0/ 5.0 Points | 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 | | |
