NOTE: For multiple-choice and true/false questions, simply place your cursor over what you think is the correct answer. (There is no need to click the answer.) For fill-in-the-blank questions place your cursor over the _________.
If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting Explanation.
| 1. |
The combination of the Social Security tax and the Medicare tax is referred to by the acronym ___________.
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| 2. |
The current rate for the Social Security tax (excluding the Medicare tax) that is withheld from employees' salaries and wages up to a specified annual amount is _____%.
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| 3. |
The combined rate for the Social Security tax and the Medicare tax to be withheld from each employee's gross wages up to $97,500 in 2007 is _____%.
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| 4. |
The amount of FICA that should be withheld from an employee’s salary of $200,000 in the year 2007 is $____________.
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| 5. |
What is the total amount of FICA that needs to be remitted by an employer in 2007 for an employee earning $50,000? |
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$1,450
$3,825
$6,200
$7,650
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| 6. |
The pay earned by hourly-paid employees is usually referred to as _________.
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| 7. |
The pay earned by managers who are paid semi-monthly is referred to as _____________.
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| 9. |
The federal form on which an employee indicates the number of exemptions/dependents to be used in calculating the amount of federal income tax withholding for the employee is the ________ form.
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| 11. |
The amount that an employee "clears" or "takes home" is the ________ pay.
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| 12. |
A tax paid by the employer that is 0.8% of each employee’s first $7,000 of annual salary or wages is ____________ ______________ tax.
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| 14. |
An employee is hired at a pay rate of $10 per hour. During the past week, the employee worked 50 hours. The employee’s gross wages for the past week are |
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$400
$450
$500
$550
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Use the following information for Questions 15 – 17:
An employee worked the entire year of 2006 and earned two weeks of vacation as specified in the company’s labor agreement. The agreement also states that the two weeks of vacation shall be taken anytime in 2007 and the amount paid will be 80 hours multiplied by the employee’s rate of pay at December 31, 2006. At December 31, 2006 the employee’s pay rate was $15.
| 16. |
The amount that will be reported on the 2007 income statement as Vacation Expense for the vacation taken in 2007 is $______________.
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| 18. |
January 2007 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2006. On which income statement will the state unemployment tax expense appear under accrual accounting? |
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2006
2007
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Use the following information for Questions 19 – 20:
An employer has computed the following amounts for its employee Mary during a week in January: gross wages $500.00; FICA tax withheld $38.25; federal income tax withholding $60.00; State income tax withholding $20.00; unemployment taxes $24; worker compensation insurance $5. The company does not provide health insurance, paid vacations, or any other benefits.
