Question 1

State and federal unemployment taxes are two required payroll deductions for employees.

Accepted Answer

A) True 
 B)False

Question 2

Assuming that a payroll bank account is used, when the payroll is initially recorded, Salaries Payable is credited for total take-home pay.

Accepted Answer

A) True 
 B)False

Question 3

Match the terms below with the correct definitions.
-A form that summarizes payroll information for a given payroll period

Accepted Answer

A)  FICA taxes
B)  Payroll register
C)  Employer
D)  Gross pay
E)  Workers' compensation lawsF) Employee's withholding allowance certificate (W-4) G) ExemptionsH) Independent contractorI) FUTA taxesJ) Employee's individual earnings recordK) B) and E)
L) B) and J)

Question 4

There is no ceiling on each employee's total earnings that are subject to federal income tax.

Accepted Answer

A) True 
 B)False

Question 5

The structure of the payroll entry to record the payroll is

Accepted Answer

A)   debit Wages Payable; credit each employee deduction.
B)   debit Wages Payable; credit Cash.
C)   debit Wages Expense; credit each employee deduction; credit Salaries Payable.
D)   debit Wages Expense; credit each employee deduction.
E)   debit Wages Payable; credit Sales Expense; and credit Cash.F) A) and B)
G) C) and D)

Question 6

Which of the following is true about the Federal Insurance Contributions Act?

Accepted Answer

A)   It provides early retirement benefits after a worker reaches age 65.
B)   It provides retirement benefits to workers who become disabled after age 68.
C)   It provides a health insurance program for workers after age 65.
D)   It provides free health insurance for the dependents of all workers.E) A) and B)
F) A) and C)

Question 7

The FICA Tax Payable account is usually used for both the employees' and the employer's share of FICA taxes (Social Security and Medicare).

Accepted Answer

A) True 
 B)False

Question 8

Match the terms below with the correct definitions.
-Taxes paid only by employers under the provisions of the Federal Unemployment Tax Act

Accepted Answer

A)  FICA taxes
B)  Payroll register
C)  Employer
D)  Gross pay
E)  Workers' compensation lawsF) Employee's withholding allowance certificate (W-4) G) ExemptionsH) Independent contractorI) FUTA taxesJ) Employee's individual earnings recordK) H) and J)
L) C) and J)

Question 9

All of the following are payroll taxes that are expenses of the employer except

Accepted Answer

A)   FICA Social Security taxes.
B)   employee income taxes.
C)   state unemployment taxes.
D)   federal unemployment taxes.
E)   FICA Medicare taxes.F) A) and E)
G) A) and B)

Question 10

The Medicare tax is 6.2 percent of unlimited gross earnings.

Accepted Answer

A) True 
 B)False

Question 11

A carpenter who decides his own hours is an example of an independent contractor.

Accepted Answer

A) True 
 B)False

Question 12

John Smith is paid $15 per hour and he worked 35 hours during the week. What is John's gross pay?

Accepted Answer

A)   $450
B)   $525
C)   $975
D)   $1,050E) A) and B)
F) B) and D)

Question 13

The payroll register contains the earnings of all the employees for the pay period.

Accepted Answer

A) True 
 B)False

Question 14

The portion of FICA taxes designated as Medicare is paid by

Accepted Answer

A)   employees only.
B)   the employer and the federal government.
C)   both the employee and the employer.
D)   either the employer or the employee, depending on the labor contract.
E)   neither the employee nor the employer.F) A) and B)
G) C) and D)

Question 15

What item is NOT used to calculate the federal income tax to be withheld by employers?

Accepted Answer

A)   Total Earnings
B)   W-2
C)   Publication 15 (Circular 
E)  
D)   W-4E) All of the above
F) A) and C)

Question 16

The employer records the amount of federal income tax withheld as

Accepted Answer

A)   an expense.
B)   an asset.
C)   payroll tax expense.
D)   a liability.
E)   a contra asset.F) None of the above
G) A) and B)

Question 17

A plumber who sets his own work schedule is an example of:

Accepted Answer

A)   Independent Contractor
B)   Employee
C)   Employer
D)   FreelancerE) None of the above
F) A) and D)

Question 18

A law that protects employees and dependents against losses due to death or injury on the job is:

Accepted Answer

A)   Fair Labor Standards Act
B)   Federal Wage and Hour Act
C)   Worker's Compensation Laws
D)   Social Security Act of 1935E) A) and B)
F) B) and C)

Exam 7: Employee Earnings and Deductions

The FICA Tax Payable account is usually used for both the employees' and the employer's share of FICA taxes (Social Security and Medicare).

Correct Answer
verified

Match the terms below with the correct definitions. -A form that summarizes payroll information for a given payroll period

Correct Answer
verified

The payroll register contains the earnings of all the employees for the pay period.

Correct Answer
verified

Assuming that a payroll bank account is used, when the payroll is initially recorded, Salaries Payable is credited for total take-home pay.

Correct Answer
verified

There is no ceiling on each employee's total earnings that are subject to federal income tax.

Correct Answer
verified

Which of the following is true about the Federal Insurance Contributions Act?

Correct Answer
verified

John Smith is paid $15 per hour and he worked 35 hours during the week. What is John's gross pay?

Correct Answer
verified

The employer records the amount of federal income tax withheld as

Correct Answer
verified

A carpenter who decides his own hours is an example of an independent contractor.

Correct Answer
verified

A plumber who sets his own work schedule is an example of:

Correct Answer
verified

A law that protects employees and dependents against losses due to death or injury on the job is:

Correct Answer
verified

What item is NOT used to calculate the federal income tax to be withheld by employers?

Correct Answer
verified

Match the terms below with the correct definitions. -Taxes paid only by employers under the provisions of the Federal Unemployment Tax Act

Correct Answer
verified

All of the following are payroll taxes that are expenses of the employer except

Correct Answer
verified

The portion of FICA taxes designated as Medicare is paid by

Correct Answer
verified

State and federal unemployment taxes are two required payroll deductions for employees.

Correct Answer
verified

The Medicare tax is 6.2 percent of unlimited gross earnings.

Correct Answer
verified

The structure of the payroll entry to record the payroll is

Correct Answer
verified

Exam 7: Employee Earnings and Deductions

The FICA Tax Payable account is usually used for both the employees' and the employer's share of FICA taxes (Social Security and Medicare).

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -A form that summarizes payroll information for a given payroll period

Correct AnswerverifiedShow Answer

The payroll register contains the earnings of all the employees for the pay period.

Correct AnswerverifiedShow Answer

Assuming that a payroll bank account is used, when the payroll is initially recorded, Salaries Payable is credited for total take-home pay.

Correct AnswerverifiedShow Answer

There is no ceiling on each employee's total earnings that are subject to federal income tax.

Correct AnswerverifiedShow Answer

Which of the following is true about the Federal Insurance Contributions Act?

Correct AnswerverifiedShow Answer

John Smith is paid $15 per hour and he worked 35 hours during the week. What is John's gross pay?

Correct AnswerverifiedShow Answer

The employer records the amount of federal income tax withheld as

Correct AnswerverifiedShow Answer

A carpenter who decides his own hours is an example of an independent contractor.

Correct AnswerverifiedShow Answer

A plumber who sets his own work schedule is an example of:

Correct AnswerverifiedShow Answer

A law that protects employees and dependents against losses due to death or injury on the job is:

Correct AnswerverifiedShow Answer

What item is NOT used to calculate the federal income tax to be withheld by employers?

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -Taxes paid only by employers under the provisions of the Federal Unemployment Tax Act

Correct AnswerverifiedShow Answer

All of the following are payroll taxes that are expenses of the employer except

Correct AnswerverifiedShow Answer

The portion of FICA taxes designated as Medicare is paid by

Correct AnswerverifiedShow Answer

State and federal unemployment taxes are two required payroll deductions for employees.

Correct AnswerverifiedShow Answer

The Medicare tax is 6.2 percent of unlimited gross earnings.

Correct AnswerverifiedShow Answer

The structure of the payroll entry to record the payroll is

Correct AnswerverifiedShow Answer

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