Question 1 of 20 0.0/ 5.0 Points 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

Question 1 of 20

0.0/ 5.0 Points

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

$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?

[removed] A. Debit of $550
[removed] B. Credit of $550
[removed] C. Debit of $500
[removed] D. Credit of $500

Question 2 of 20

0.0/ 5.0 Points

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?

[removed] A. FICA-OASDI could be overstated.
[removed] B. FUTA could be overstated.
[removed] C. SUTA could be overstated.
[removed] D. All of the above

Question 3 of 20

0.0/ 5.0 Points

The law that governs overtime earnings is called the

[removed] A. Federal Insurance Contribution Act.
[removed] B. Federal Wage and Hour Law.
[removed] C. Fair Labor Standards Act.
[removed] D. Both b and c

Question 4 of 20

5.0/ 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)?

[removed] A. $760
[removed] B. $780
[removed] C. $720
[removed] D. $860

Question 5 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?

[removed] A. $3,400
[removed] B. $3,454
[removed] C. $4,454
[removed] D. $4,000

Question 6 of 20

5.0/ 5.0 Points

A summary record of each person’s earnings, deductions, and net pay is called a/an

[removed] A. payroll register.
[removed] B. W-4.
[removed] C. employee individual earnings record.
[removed] D. general journal.

Question 7 of 20

0.0/ 5.0 Points

What is debited if State Unemployment Tax Payable (SUTA) is credited?

[removed] A. Payroll Tax Expense
[removed] B. Cash
[removed] C. Salaries Payable
[removed] D. Salaries Expense

Question 8 of 20

0.0/ 5.0 Points

Which of the following statements is false?

[removed] A. Payroll Tax Expense is an expense account.
[removed] B. FICA-Social Security Tax Payable increases on the credit side of the account.
[removed] C. Payroll Tax Expense increases on the debit side of the account.
[removed] D. SUTA Tax Payable increases on the debit side of the account.

Question 9 of 20

0.0/ 5.0 Points

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?

[removed] A. $800
[removed] B. $720
[removed] C. $780
[removed] D. $690

Question 10 of 20

5.0/ 5.0 Points

The debit amount to Payroll Tax Expense represents

[removed] A. the employer’s portion of the payroll taxes.
[removed] B. the employees’ portion of the payroll taxes.
[removed] C. the employer’s and employees’ portion of the payroll taxes.
[removed] D. None of the above

Question 11 of 20

0.0/ 5.0 Points

A W-4 form

[removed] A. determines the amount of FICA-OASDI to be withheld.
[removed] B. determines the amount of FICA-Medicare to be withheld.
[removed] C. provides the number of allowances an employee has claimed.
[removed] D. shows total wages earned for the year.

Question 12 of 20

0.0/ 5.0 Points

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

[removed] A. W-4 form.
[removed] B. W-2 form.
[removed] C. 1040 form.
[removed] D. None of the above

Question 13 of 20

0.0/ 5.0 Points

A company can deem an employee as salaried

[removed] A. if it doesn’t want to pay overtime wages.
[removed] B. if the employee meets the salaried laws under the Fair Labor Standards Act.
[removed] C. to make the payroll process easier.
[removed] D. if the employee has been employed at the company for one year or longer.

Question 14 of 20

5.0/ 5.0 Points

Wages and Salaries Expense is

[removed] A. equal to net pay.
[removed] B. equal to gross pay.
[removed] C. equal to the employer’s taxes.
[removed] D. None of the above

Question 15 of 20

0.0/ 5.0 Points

Gross earnings are the same as

[removed] A. regular earnings.
[removed] B. regular earnings plus overtime earnings.
[removed] C. net earnings.
[removed] D. net earnings plus overtime earnings.

Question 16 of 20

0.0/ 5.0 Points

As the Prepaid Workers Compensation is recognized, the amount will transfer to

[removed] A. Workers Compensation Insurance Payable.
[removed] B. Workers Compensation Insurance Expense.
[removed] C. Cash.
[removed] D. Payroll Tax Expense.

Question 17 of 20

0.0/ 5.0 Points

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?

[removed] A. $0; $76.85
[removed] B. $328.60; $0
[removed] C. $328.60; $76.85
[removed] D. $3,286; $768.50

Question 18 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

[removed] A. a debit to Payroll Tax Expense in the amount of $390.
[removed] B. a credit to FUTA Payable for $24.
[removed] C. a credit to SUTA Payable for $60.
[removed] D. All of the above

Question 19 of 20

0.0/ 5.0 Points

If Sheila worked 38 hours, how many hours of overtime did she earn?

[removed] A. Zero
[removed] B. One
[removed] C. Five
[removed] D. Nine

Question 20 of 20

5.0/ 5.0 Points

A pay period is defined as

[removed] A. weekly.
[removed] B. biweekly.
[removed] C. monthly.
[removed] D. All of the above

10 years ago

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Question 1 of 20 0.0/ 5.0 Points 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

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