Question 1

Publication 15,Circular E contains federal income tax withholding tables.

Accepted Answer

A) True 
 B)False

Question 2

During the week ended February 8,2016,Stuart Wayne worked 40 hours.His regular hourly rate is $10.Assume that his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent.He also has deductions of $31 for federal income tax and $21 for health insurance.
A)What is his gross pay for the week?
B)What is the total of his deductions for the week?
C)What is his net pay for the week?

Accepted Answer

A)$400.00
B)$82.60 (...

Question 3

The Rollins Company has office employees and shipping employees.A summary of their earnings and deductions for the week ended June 14,2016,is shown below.On page 6 of a general journal,record the June 14 payroll and the entry to summarize the effect of the checks written to pay the payroll.

Accepted Answer

The answer of The Rollins Company has office employees and...

Question 4

The monthly salaries for December and the year-to-date earnings as of November 30 for the three employees of the Barbara's Bookstore,Inc.are listed below.Compute the amount of social security tax and Medicare tax to be withheld from each of the employee's gross pay for December.Assume a 6.2 percent social security tax rate and a base of $113,700 for the calendar year.Assume a 1.45 percent Medicare tax rate.

Accepted Answer

Employee No.1: Soc.Sec.Tax,$142.60;Medicare Tax,$114.55
Employee No.2: Soc.Sec.Tax,$496.00;Medicare Tax,$116.00
Employee No.3: Soc.Sec.Tax,zero;Medicare Tax,$143.55

Question 5

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.In the payroll register,the employer should record an overtime premium of

Accepted Answer

A)   $440.
B)   $220.
C)   $20.
D)   $5.

Question 6

Withholding for federal income taxes places employees on a pay-as-you-go basis.

Accepted Answer

A) True 
 B)False  True

Question 7

During one week,three employees of the Snowshoe Lodge worked the number of hours shown below.All these employees receive overtime pay at one and a half times their regular hourly rate for any hours worked beyond 40 in a week.Compute the regular earnings,overtime earnings,and gross pay for each employee.

Accepted Answer

Employee No.1: Reg.Earn. ,$480.00;OT Ear...

Question 8

Time sheets or time cards are used to keep a record of hours worked each day by each employee paid on an hourly basis.

Accepted Answer

A) True 
 B)False

Question 9

Social Security taxes are paid by:

Accepted Answer

A)   employees only.
B)   the employer and federal government.
C)   both the employee and employer.
D)   solely by the employer.

Question 10

The overtime rate is one and one-half times the regular hourly rate.

Accepted Answer

A) True 
 B)False

Question 11

Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500,the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is

Accepted Answer

A)   a debit for $36.25.
B)   a credit for $36.25.
C)   a debit for $108.75.
D)   a credit for $108.75.

Question 12

Identify the list of accounts below that would normally all have a credit balance.

Accepted Answer

A)   Salaries Payable,Employee Income Tax Payable,Owner's Capital
B)   Salaries Payable,Prepaid Insurance,Medicare Tax Payable
C)   Wages Expense,Salaries Payable,Equipment
D)   Employee Income Tax Payable,Social Security Tax Payable,Salaries Expense

Question 13

The column totals in a payroll register

Accepted Answer

A)   are used in the journal entry to record the payroll.
B)   are posted directly to the general ledger accounts.
C)   are unnecessary.
D)   are used at the end of the year to record payroll taxes owed to the IRS. A

Question 14

Salespeople who are paid a percentage of net sales are paid on a(n)

Accepted Answer

A)   commission basis.
B)   salary basis.
C)   hourly-rate basis.
D)   piece-rate basis.

Question 15

FICA tax is commonly referred to as ____________________ tax.

Accepted Answer

The answer of FICA tax is commonly referred to as...

Question 16

The Burns Company has two office employees and two shipping employees.A summary of their earnings and deductions for the week ended August 23,2016,is shown below.On page 10 of a general journal,record the August 23 payroll and the entry to summarize the effect of the checks written to pay the payroll.

Accepted Answer

The answer of The Burns Company has two office employees...

Question 17

Which of the following statements is not correct?

Accepted Answer

A)   The amount of social security tax withheld depends on an employee's gross earnings,marital status,and number of withholding allowances.
B)   Federal law requires that social security,Medicare,and federal income taxes be deducted from the gross pay of most employees.
C)   Medicare taxes are levied in an equal amount on both employers and employees.
D)   Once an employee's year-to-date wages reach a certain amount prescribed by law,social security tax is no longer withheld.

Question 18

An employee whose regular hourly rate is $20 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.In the payroll register,the employer should record an overtime premium of

Accepted Answer

A)   $880.
B)   $440.
C)   $120.
D)   $40.

Question 19

During the week ended April 26,2016,Andy Tyler worked 40 hours.His regular hourly rate is $15.Assume that his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent.He also has deductions of $31 for federal income tax and $21 for health insurance.
A)What is his gross pay for the week?
B)What is the total of his deductions for the week?
C)What is his net pay for the week?

Accepted Answer

A)$600.00
B)$97.90 (...

Question 20

The employee's marital status is one factor that determines the amount of federal income tax withheld by the employer.

Accepted Answer

A) True 
 B)False

Exam 10: Payroll Computations, Records, and Payment

Publication 15,Circular E contains federal income tax withholding tables.

Correct Answer
verified

Correct Answer
verified
A)$400.00
B)$82.60 (...
View Answer

The Rollins Company has office employees and shipping employees.A summary of their earnings and deductions for the week ended June 14,2016,is shown below.On page 6 of a general journal,record the June 14 payroll and the entry to summarize the effect of the checks written to pay the payroll.

Correct Answer
verified

Correct Answer
verified
Employee No.1: Soc.Sec.Tax,$142.60;Medicare Tax,$114.55 Employee No.2: Soc.Sec.Tax,$496.00;Medicare Tax,$116.00 Employee No.3: Soc.Sec.Tax,zero;Medicare Tax,$143.55

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.In the payroll register,the employer should record an overtime premium of

Correct Answer
verified

Withholding for federal income taxes places employees on a pay-as-you-go basis.

Correct Answer
verified
True

Correct Answer
verified
Employee No.1: Reg.Earn. ,$480.00;OT Ear...
View Answer

Time sheets or time cards are used to keep a record of hours worked each day by each employee paid on an hourly basis.

Correct Answer
verified

Social Security taxes are paid by:

Correct Answer
verified

The overtime rate is one and one-half times the regular hourly rate.

Correct Answer
verified

Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500,the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is

Correct Answer
verified

Identify the list of accounts below that would normally all have a credit balance.

Correct Answer
verified

The column totals in a payroll register

Correct Answer
verified
A

Salespeople who are paid a percentage of net sales are paid on a(n)

Correct Answer
verified

FICA tax is commonly referred to as ____________________ tax.

Correct Answer
verified

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

An employee whose regular hourly rate is $20 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.In the payroll register,the employer should record an overtime premium of

Correct Answer
verified

Correct Answer
verified
A)$600.00
B)$97.90 (...
View Answer

The employee's marital status is one factor that determines the amount of federal income tax withheld by the employer.

Correct Answer
verified

Exam 10: Payroll Computations, Records, and Payment

Publication 15,Circular E contains federal income tax withholding tables.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA)$400.00B)$82.60 (...View AnswerShow Answer

The Rollins Company has office employees and shipping employees.A summary of their earnings and deductions for the week ended June 14,2016,is shown below.On page 6 of a general journal,record the June 14 payroll and the entry to summarize the effect of the checks written to pay the payroll.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedEmployee No.1: Soc.Sec.Tax,$142.60;Medicare Tax,$114.55 Employee No.2: Soc.Sec.Tax,$496.00;Medicare Tax,$116.00 Employee No.3: Soc.Sec.Tax,zero;Medicare Tax,$143.55

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.In the payroll register,the employer should record an overtime premium of

Correct AnswerverifiedShow Answer

Withholding for federal income taxes places employees on a pay-as-you-go basis.

Correct AnswerverifiedTrue

Correct AnswerverifiedEmployee No.1: Reg.Earn. ,$480.00;OT Ear...View AnswerShow Answer

Time sheets or time cards are used to keep a record of hours worked each day by each employee paid on an hourly basis.

Correct AnswerverifiedShow Answer

Social Security taxes are paid by:

Correct AnswerverifiedShow Answer

The overtime rate is one and one-half times the regular hourly rate.

Correct AnswerverifiedShow Answer

Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500,the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is

Correct AnswerverifiedShow Answer

Identify the list of accounts below that would normally all have a credit balance.

Correct AnswerverifiedShow Answer

The column totals in a payroll register

Correct AnswerverifiedA

Salespeople who are paid a percentage of net sales are paid on a(n)

Correct AnswerverifiedShow Answer

FICA tax is commonly referred to as ____________________ tax.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

An employee whose regular hourly rate is $20 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.In the payroll register,the employer should record an overtime premium of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA)$600.00B)$97.90 (...View AnswerShow Answer

The employee's marital status is one factor that determines the amount of federal income tax withheld by the employer.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A)$400.00
B)$82.60 (...
View Answer

Correct Answer
verified

Correct Answer
verified
Employee No.1: Soc.Sec.Tax,$142.60;Medicare Tax,$114.55 Employee No.2: Soc.Sec.Tax,$496.00;Medicare Tax,$116.00 Employee No.3: Soc.Sec.Tax,zero;Medicare Tax,$143.55

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified
Employee No.1: Reg.Earn. ,$480.00;OT Ear...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A)$600.00
B)$97.90 (...
View Answer

Correct Answer
verified