TEST BANK For Payroll Accounting 2024 10th Edition. By Jeanette Landin, Paulette Schirmer by digitaldownload87

Payroll Accounting 2024 10e By Jeanette Landin, Paulette Schirmer (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter Chapter 1:__________ 1) Payroll errors can lead to underreported wages and staffing issues. ⊚ true ⊚ false

2) The Lilly Ledbetter Act of 2009 reinforced the provisions of the Current Tax Payment Act by

enforcing tax remittance within 180 days. ⊚ true ⊚ false

3) The Occupational Safety and Health Act of 1970 added personal protective equipment

standards during 2020. ⊚ true ⊚ false

4) Employee retirement benefits are a recruiting and retention strategy used by businesses. ⊚ true ⊚ false

5) The Family Medical Leave Act provided paid leave and guaranteed job retention for

employees. ⊚ true ⊚ false

6) Workers may access partial Social Security retirement benefits at age 62. ⊚ true ⊚ false

7) The Fair Labor Standards Act has two levels of coverage: individual and enterprise. ⊚ true ⊚ false

8) The ethical principle of integrity pertains to standards for remaining current with payroll

professional development and certification. ⊚ true ⊚ false

9) Contemporary payroll practices involve the use of cloud-based software. ⊚ true ⊚ false

10) The use of payroll apps shifts the onus for payroll accuracy from the employer to the

employee. ⊚ true ⊚ false

11) The Personal Responsibility, Work and Family Promotion Act of 2002 mandated that new

employees must be reported to state employment offices within how many days of the employee commencing employment? A) 30 B) 25 C) 20 D) 15

12) Which Act required the reporting of COVID-19-related leave? A) DOMA B) ARPA C) FMLA D) FFCRA

13) During which decade were many landmark payroll legislation pieces enacted? A) 1910s B) 1920s C) 1930s D) 1940s

14) Which federal act assists workers who are displaced through no fault of their own? A) HIPAA B) FUTA C) SUTA D) ERISA

15) As of 2023, at what age may people born after 1960 receive full Social Security retirement

benefits? A) 62 B) 65 C) 67 D) 69

16) Which Act created the classification of workers as exempt or nonexempt? A) SSA B) FICA C) CTPA D) FLSA

17) Which of the following employer obligation is an insurance policy, not legislation? A) Sarbanes-Oxley B) Workers’ compensation C) Walsh-Healey D) Davis-Bacon

18) Which ethical principle emphasizes the use of moral judgment in all actions? A) Professionalism B) Confidentiality C) Integrity D) Due Care

19) Which of the following situations would not potentially comprise a payroll accountant’s

objectivity or independence, according to the PCAOB? A) Personal or family ownership of <1 percent of company shares B) Commitment to present or future financial interest in a client’s business C) Personal engagement with a client’s firm in terms of ownership D) Purchase of greater than five percent of the company’s shares

20) Employment legislation during the 1960s included which of the following Acts: A) FLSA, FUTA, and FICA. B) Civil Rights Act, ADEA, and Equal Pay Act. C) CTPA, FICA, and ERISA. D) DOMA, FMLA, and PRWOR.

21) The main purpose of the Current Tax Payment Act was to: A) ensure that all employees pay appropriate taxes. B) maintain legal eligibility to work in the United States. C) mandate employer remittance of taxes withheld from employees. D) provide benefits for workers who were displaced from jobs.

22) Which act adds monetary penalties for illegal discriminatory employer actions? A) Civil Rights Act of 1964 B) Davis-Bacon Act C) Americans with Disabilities Act D) Civil Rights Act of 1991

23) Which of the following legislation specifically pertains to government contractors? A) ADEA and ERISA B) Davis-Bacon Act and Walsh-Healey Act C) FLSA and FICA D) DOMA and FMLA

24) Which Amendment to the U.S. Constitution mandated a federal income tax for employees? A) 13th Amendment B) 16th Amendment C) 20th Amendment D) 24th Amendment

25) What form should employers use to determine if a worker is an employee or independent

contractor? A) Form W-2 B) Form 941 C) Form 1099 D) Form SS-8

26) Employees may be classified as exempt or nonexempt because of provisions of the: A) Current Tax Payment Act. B) Sixteenth Amendment to the US Constitution. C) Social Security Act. D) Fair Labor Standards Act.

27) Which of the following is among the guidelines for a payroll code of ethics? A) Reporting B) Accountability C) Integrity D) Interdependence

28) The accounting employees at Redwood Roofing have not attended professional development

training in two years. Which ethical principle have they violated? A) Confidentiality B) Professionalism C) Professional Competence and Due Care D) Integrity

29) Emerson is the payroll accountant for WexWorks, Incorporated, and uses the on-site

company exercise facilities. During one of the exercise sessions, a coworker asks about pay rates for management at the company. Which ethical principle prevents Emerson from disclosing such information? A) Confidentiality B) Objectivity and Independence C) Integrity D) Professional Competence and Due Care

30) Peyton is an employee of Elite Engravings a family owned and operated firm. Peyton’s

relative, Tatum, asks to postpone payroll processing due to an urgent family issue. Which ethical principle might Tatum’s request violate? A) Objectivity and Independence B) Professional Competence and Due Care C) Integrity D) Professionalism

31) Morgan is the payroll accountant for the family’s company. A sibling has asked Morgan to

overlook their payroll tax liability for a pay period so they can have a little extra cash in their paycheck. Which ethical principle would Morgan violate if they complied with their brother’s request? A) Confidentiality B) Objectivity and Independence C) Integrity D) Professionalism

32) Emery is the owner of a motel franchise. When the payroll accountant quit, Emery took over

the payroll responsibilities. Emery has had no training in payroll practices. Which ethical principle most closely describes Emery’s takeover of the franchise’s payroll? A) Objectivity and Independence B) Integrity C) Professional Competence and Due Care D) Confidentiality

33) Which most closely identifies why it is important for payroll accountants to adhere to a Code

of Ethics? A) To maintain company profitability B) To overlook fraudulent actions of company officers C) To protect the assets of the company and remit money owed to the government D) To maintain personal standards only

34) In the event of an ethical breach by a payroll accountant, which entity is ultimately liable for

any monetary damages due to stakeholders? A) The payroll accountant B) The company, its CEO, or president C) The governmental entity associated with company oversight D) The entity that issued the license to the accountant

35) Contemporary payroll practices reflect: A) a shift toward manual payroll processing for security concerns. B) the decrease in labor costs that reflects the effect of the economic recession. C) the transition to Internet- or cloud-based accounting software. D) the replacement of accounting personnel with computerized systems.

36) Which of the following is a challenge for payroll accountants? A) Electronic tax filing requirements B) Employees based only in one country C) Outsourced payroll processing as a default D) Lack of security available for online programs

37) What is a best practice for payroll accountants? A) Payroll should be regarded as a separate entity within a firm. B) Technology has impeded the development of global companies. C) Payroll is a tool for a firm’s strategic planning. D) Payroll accountants are not important to the decision-making process.

38) Which of the following is a payroll accountant’s responsibility when preparing payroll? A) B) C) D)

Withholding disbursements until after the pay date Use of manual computations for preparation Accessibility of payroll data to all company employees Accuracy of payroll computations and disbursement information

39) Which of the following is a payroll accountant’s responsibility? A) B) C) D)

Wage negotiations with prospective employees Construction contract negotiations with governmental entities Preparation for corporate safety audits Preparation of payroll tax returns

40) Which form does the Internal Revenue Service use to keep track of employees? A) SS-4 B) I-9 C) SS-8 D) W-4

41) Oakley is the CFO for Parsons Project Management. They have been notified of an

impending audit of all accounting records. What is Oakley's role in the audit? A) They are required to be absent during the audit to avoid influencing the results. B) They must agree to serve on the audit staff for other companies. C) They must be available to answer questions and grant access to payroll records. D) They must prevent privacy breaches by disallowing access to payroll records.

42) Which of the following is not a privacy act specifically pertaining to payroll records? A) Common Law Privacy Act B) Freedom of Information Act C) U.S. Department of Health and Human Services Privacy Act 09-40-0006 D) Computer Fraud and Abuse Act

43) Why do different methods of time collection devices (e.g., time cards, biometric devices)

exist among companies? A) They leverage artificial intelligence, bypassing human error. B) They reduce the need for payroll oversight. C) They promote accurate time measurement. D) They alleviate the need for internal control.

44) Which of the following is a payroll-related challenge that large companies may experience? A) Centralized reporting B) Ease of communication C) Homogeneous workforce D) Dispersed geographic locations

45) Ari’s Art Supply, a multi-state franchise, uses a company-maintained website to allow

employment management of their payroll records. What would be the most significant concern for the firm? A) Accuracy of employee-entered data B) Employer access to stored data C) Website access problems D) Personnel data security

46) One benefit of cloud-based payroll accounting is: A) an on-site standalone system dedicated to payroll processing. B) regularly scheduled software updates. C) access to all company personnel records. D) access by any company employee.

47) Sloan is a payroll accountant in a company that specializes in custom products. The biggest

payroll challenge is accurate allocation of labor to jobs. Which of the following represents the most accurate option to track the company's labor costs? A) Handwritten time slips with employee-reported time per job. B) Verbal reporting of time worked per job. C) Computer logins when employees change tasks. D) Radio-frequency time cards to track time allocations.

48) What is the most significant payroll challenge for small businesses? A) Availability of payroll-trained personnel B) Availability of accounting resources C) Accessibility of free on-site payroll software D) Accessibility of on-site payroll guidance

49) An example of an accounting software package that fosters cloud-based payroll processing

is: A) B) C) D)

SageBooks. Quick100. QuickBooks. GreatBooks.

50) Paycards represent a trend in payroll disbursement that alleviates the employee's need for a: A) timesheet. B) bank account. C) computer. D) supervisor.

51) The largest challenge to companies that use manual payroll processing is: A) payroll tax accuracy. B) integrating employee data. C) disbursing employee pay. D) filing appropriate governmental reports.

52) Why is outsourced payroll popular among accounting professionals? A) Payroll processing requires less oversight. B) Data generated by the outsourced company is completely accurate. C) Time demands for payroll processing decrease. D) Records generated by outsourced vendors are not subject to oversight.

53) Which law requires a company with federal contracts to use certified payroll for any contract

size? A) B) C) D)

Walsh-Healey Public Contracts Act Copeland Anti-Kickback Act Davis-Bacon Act Sarbanes-Oxley Act

54) Which court case updated the definition of spouse to include same-sex unions? A) Pollard v. DuPont B) Obergefell v. Hodges C) CIGNA v. Amara D) Young v. Wackenhut

55) _________ is the state counterpart of FUTA. A) Fair Labor Standards Act B) Worker’s compensation insurance C) State Income Tax Act D) State Unemployment Tax Act

56) Which of the following is true about independent contractors within the context of payroll? A) They are employees of the company. B) A temporary working relationship must exist. C) Tools and facilities are provided by the employer. D) The worker controls hours worked and exercises judgment.

57) Worker's compensation is an insurance policy used for: A) employer legal protection. B) payment of mandatory payroll taxes. C) wage continuation after job-related injuries. D) settlement of payroll-related lawsuits.

58) According to the PCAOB, personal or family ownership in excess of five percent of a client's

business may compromise a payroll accountant's: A) professional competence and due care. B) objectivity and independence. C) professionalism. D) integrity.

59) What was the purpose of the SECURE Act? A) Employee security B) Employer stability C) Retirement planning D) Website security

60) Which legislation did the PATH Act extend? A) FMLA B) FLSA C) ERISA D) ATRA

61) The _________ prohibited discrimination based on race, creed, color, gender, or national

origin. A) B) C) D)

Civil Rights Act of 1964 Civil Rights Act of 1991 Equal Pay Act of 1963 Fair Labor Standards Act of 1935

62) The _________ modified the statute of limitations imposed by the Equal Pay Act of 1963. A) Civil Rights Act of 1991 B) Lilly Ledbetter Fair Pay Act of 2009 C) Setting Every Community Up for Retirement Enhancement Act of 2020 D) Consolidated Omnibus Budget Reformation Act of 1986

63) The _________ mandated employer verification and reporting of an employee's legal ability

to work in the United States. A) Personal Responsibility and Work Opportunity Reconciliation Act of 1996 B) Immigration Reform and Control Act of 1986 C) American Reinvestment and Recovery Act of 2009 D) Protecting Americans from Tax Hikes Act of 2015

64) Payment of prevailing local wages for government contractors was mandated by the

_________. A) Davis-Bacon Act B) Walsh-Healey Public Contracts Act C) Fair Labor Standards Act D) Equal Pay Act

65) Congress passed the _________ and _________ to assist displaced workers. A) Federal Unemployment Tax Act; Social Security Insurance Act B) SECURE Act; Federal Unemployment Insurance Act C) 16th Amendment; Fair Labor Standards Act D) Federal Income Contributions Act; Federal Unemployment Tax Act

66) The ethical principle of _________ applies to the security of payroll records. A) professional competence and due care B) integrity C) confidentiality D) objectivity and independence

67) An accountant must remain impartial in all dealings, according to the ethical principle of

_________. A) professionalism B) objectivity and independence C) professional competence and due care D) integrity

68) Employers must request a(n) _________ by using form _________ for the Internal Revenue

Service to track a firm's payroll tax obligations. A) Social Security Number; W-4 B) Employer Registration Number; SS-8 C) Tax Identification Number; W-2 D) Employer Identification Number; SS-4

69) Companies use _________ and _________ to allow employees to have rapid, electronic

access to their compensation. A) cash; checks B) cash; direct deposit C) direct deposit; paycards D) paycards; checks

70) _________ is required under the Davis-Bacon Act for employers who engage with federal

contracts. A) Cloud-based payroll B) Centralized payroll C) Certified payroll D) Computerized payroll

71) The _________ instituted significant changes to payroll taxes, especially adjustments for

inflation and employee income tax computation. A) Protecting Americans from Tax Hikes Act B) Tax Cuts and Jobs Act C) Walsh-Healey Public Contracts Act D) Affordable Care Act

72) The Consolidated Appropriations Act included an increase in funding for the _________

program. A) Medicare B) PATH C) SECURE D) E-Verify

73) When an employer verifies an employee’s employment eligibility, _________ is mandatory

for but _________ is not. A) Form W-4; Form I-9 B) E-Verify; Form I-9 C) E-Verify; Form W-4 D) Form I-9; E-Verify

74) To re-verify an employee’s employment authorization, _________ must be used. A) B) C) D)

Form I-9 Form W-4 E-Verify Form W-2

75) A provision of the _________ made managers and supervisors ineligible to participate in the

tip pools, when used for tipped employees. A) Tipped Employees Act B) Tax Cuts and Jobs Act C) Consolidated Appropriations Act D) Equal Employment Act

76) The _________ granted small employers tax incentives for implementing automatic

retirement plan enrollment for their employees. A) PATH Act B) SECURE Act C) CAA Act D) SAFE AGE Act

77) The _________ represented sweeping changes to the tax code and reframed the computation

of employee income tax. A) Consolidated Appropriations Act B) Affordable Care Act C) Tax Cuts and Jobs Act D) E-Verify Act

Answer Key Test name: Chapter 1 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) TRUE 10) FALSE 11) C 12) D 13) C 14) B 15) C 16) D 17) B 18) B 19) A 20) B 21) C 22) D 23) B 24) B 25) D 26) D 27) C 28) C 29) A 30) D 31) B 32) C 33) C 34) B 35) C 36) A 37) C

38) D 39) D 40) D 41) C 42) B 43) C 44) D 45) D 46) B 47) D 48) A 49) C 50) B 51) A 52) C 53) C 54) B 55) D 56) D 57) C 58) B 59) C 60) D 61) A 62) B 63) B 64) A 65) A 66) C 67) B 68) D 69) C 70) C 71) B 72) D 73) D 74) A 75) C 76) B 77) C

Chapter 2:__________ 1) The two focuses of payroll procedures are company needs and governmental rules. ⊚ true ⊚ false

2) Employers may choose to omit the employees' home and mailing addresses in their employee

files. ⊚ true ⊚ false

3) All FLSA elements must appear on the Employee Information Form. ⊚ true ⊚ false

4) Semimonthly payroll may result in 25 pay periods during a one-year period. ⊚ true ⊚ false

5) Three IRS common-law tests exist to determine if a worker is an employee or independent

contractor. ⊚ true ⊚ false

6) New employees must be reported to state offices within 20 days of their initial start date. ⊚ true ⊚ false

7) United States workers in foreign subsidiaries are liable for all income taxes. ⊚ true ⊚ false

8) Pay frequency is the first payroll system decision a company must make. ⊚ true ⊚ false

9) An employee must meet all elements in the exemption tests to be classified as an exempt

employee. ⊚ true ⊚ false

10) Payroll data is only as accurate as the person who records it. ⊚ true ⊚ false

11) Which is the first decision an employer should make about its payroll procedures? A) How often to pay employees B) How to handle pay advances C) How many employees to hire D) Which employee benefits to offer

12) Which of the following items must exist in every employee's payroll file? A) Social security number B) Pay frequency C) Spouse's birth date D) Prior occupation

13) Why must pay rate information be a part of an employee’s payroll file? A) B) C) D)

As a means of tracking time worked for overtime compensation purposes To ensure that the employee receives all compensation earned As a means of ensuring pay equality among employees To document satisfaction of court-ordered obligations

14) Which of the following is a purpose of new hire reporting laws? A) To ensure payment of court-ordered obligations like garnishments and child support B) To keep track of workers throughout their careers C) To ensure consistent pay through an employee’s career D) To maintain the company’s business license

15) Which pay frequency has 52 pay periods annually? A) Daily B) Biweekly C) Semimonthly D) Weekly

16) Which pay frequency has 24 pay periods per year? A) Bimonthly B) Biweekly C) Semimonthly D) Semi-weekly

17) Which pay frequency usually has 26 pay periods annually? A) Daily B) Weekly C) Monthly D) Bi-weekly

18) Which form is required whenever any employee is hired? A) H-1 B) I-9 C) SS-8 D) W-2

19) Joni is the payroll accountant for a firm. She notes that the firm has hired a new employee.

What forms must she collect from the new employee? A) W-2 and I-8 B) W-4 and I-9 C) W-4 and I-8 D) W-3 and I-9

20) If a firm pays its employees semimonthly, how often does it disburse employee

compensation? A) Twice per month B) Every week C) Every two months D) Every three weeks

21) Why is it important for an employer to classify a worker as either an employee or an

independent contractor? A) For tax remittance purposes B) For child support obligations purposes C) For government tracking purposes D) For reimbursement purposes

22) Which of the following was part of the 2020 final rule distinguishing employees and

independent contractors? A) Amount of work performed B) Training requirements C) The importance of the work for the firm D) The type of labor performed

23) As a best practice, the employer should have the employee complete a new Form W-4: A) before each pay disbursement. B) each year, upon the employee's anniversary with the firm. C) every January 1. D) at the time of hire.

24) Murphy is a new employee of Justice Sports. To establish identity and employment

authorization, Murphy could present: A) a current United States passport. B) a library card and birth certificate. C) a driver's license and ATM card. D) a college transcript and driver's license.

25) Which items must be contained in every hiring packet issued by an employer? A) Forms W-4 and I-9 B) Employment contract with start date and pay agreement C) Descriptions of benefits and enrollment forms D) No items are mandated for issuance in a hiring packet.

26) New hires must be reported within _________ days from the date of hire to state authorities. A) 30 B) 20 C) 10 D) 3

27) Multistate employers must do which of the following for new hire reporting? A) File a new-hire report with the state office for each employee's state of residence B) File a report with the IRS since they have employees in multiple states C) File multistate registration form to designate which state will receive their new hire

reporting D) File new hire reports only in the state with the company’s headquarters

28) Which entity bears the responsibility for gaining approval for a foreign worker visa so a

foreign employee may work legally in the United States? A) The employer B) The employee C) The U.S. State Department D) The employer's home country

29) Haskell is a full-time worker whose primary occupation involves extensive overnight travel

to visit sites on the behalf of a single company. Which of the following classifications most accurately describes Haskell's employment status? A) Independent contractor B) Exempt employee C) Nonexempt employee D) Statutory employee

30) Valen is an employee of the foreign subsidiary of a United States based company who lives

and works in the United Kingdom. According to Foreign Account Tax Compliance Act (FATCA), how much of his wages may Valen exclude from United States' taxes, according to 2023 guidelines? A) $102,600 B) $108,900 C) $115,200 D) $120,000

31) Valen is an employee of the foreign subsidiary of a United States based company who lives

32) Which of the following factors could assist employers in determining employee pay rates? A) Employee marital status B) Company’s net income C) Employee FLSA status D) Industry type

33) Delta works in a company for which their primary job function is the manufacturing of

company products to consumers. Delta receives a percentage of each sale as part of their compensation. Their compensation contains a _________ element. A) piece-rate B) commission C) pay-for-performance D) nonexempt

34) Merrick works for a bakery for which part of their compensation is based on the sale of

wedding and other specialty cakes. Merrick’s compensation has a _________ element. A) performance incentive B) commission C) piece-rate D) nonexempt

35) Which of the following is subject to overtime in the process of hourly computations,

according to FLSA? A) Time worked during a given 24-hour period B) Holiday, sick time, and paid time off C) Time worked in excess of 40 hours per week D) Exempt employee weekend work

36) Which of the following is a necessary element in an accounting system? A) Internal secrecy B) Audit control C) Internal control D) Audit review

37) A payroll review process is the least complex when: A) the company has few employees. B) the company is not geographically dispersed. C) the company is centralized and uses one location. D) the company has multiple departments and many employees.

38) Outsourcing the payroll process: A) relieves the company of the task completion and the review process. B) relieves the company of certain task completion but not the review process. C) relieves the company of all liability for payroll completion and accuracy. D) relieves the company of the review process but not the task completion.

39) A company should assign _________ employee(s) the responsibility for signing payroll

checks and disbursements. A) a limited number of B) only one C) its most responsible D) managerial

40) Which of the following is a potential consequence of incorrect calculation of employee time

for payroll purposes? A) Federal penalties for not remitting all taxes due B) Erosion of available cash because of underpayments to employees C) Increased stakeholder approval due to employee overpayments D) An increase in employee morale

41) For payroll documentation purposes, when an employee needs time away from work: A) the supervisor should authorize it verbally. B) the employee should email only department colleagues. C) upper management must approve the request. D) the request should be documented, approved, and forwarded to the payroll clerk.

42) When a payroll clerk receives an approved request for an employee's time away from work,

he or she should: A) immediately place it in the employee's file. B) attach it to the employee's time collection report for the pay period. C) destroy the document in accordance with privacy laws. D) contact the employee to verify the request.

43) A company should restrict access to payroll files (paper and/or electronic) as a part of: A) file security internal controls B) audit trail requirements C) state requirements D) FLSA requirements

44) Which aspect of internal controls for payroll relates to the Sarbanes-Oxley Act? A) Protecting employee retirement funds B) Limiting the number of employees authorized to disburse payroll C) Cross-training employees and altering duties D) Ensuring the complexity of the audit trail

45) Employee file maintenance is the responsibility of the: A) employee. B) employer. C) payroll vendor. D) state government.

46) Computerized payroll records are considered a(n): A) open system. B) open access. C) closed system. D) closed access.

47) When developing the internal controls and record retention for a payroll system, a company

should: A) B) C) D)

involve all company employees to promote transparency. develop a closed system and alternate employee duties. designate a single employee with the responsibility for pay disbursements. train accounting personnel on a single payroll task.

48) The retention period for payroll documents commences: A) at the time an employee is hired. B) when an employee's first pay is disbursed. C) once the employee completes one year of service. D) when an employer terminates the worker’s employment.

49) Which of the following parties does not legally have access to a firm’s payroll records? A) B) C) D)

The IRS State revenue department employees Vendors of the firm The Department of Homeland Security

50) Which of the following is true about document retention requirements per the IRS statute of

limitations? A) Federal legislation requires documents to be retained for two years after the employee’s termination. B) Payroll records must be maintained for three years after termination. C) Union employees’ records must be retained for five years after termination. D) State legislation requires records to be retained for a minimum of eight years after termination.

51) Erica was an employee of the Cheshire Senior Hospice System. After she resigned her

employment, auditors discovered evidence of fraudulent activity that they traced to her. Erica's records must be retained: A) for 20 years. B) for 10 years. C) for 30 years. D) indefinitely.

52) Erica was an employee of the Cheshire Senior Hospice System. After she resigned her

employment, auditors discovered evidence of fraudulent activity that they traced to her. Erica's records must be retained: A) for 10 years. B) for 15 years. C) for 20 years. D) indefinitely.

53) Celyn’s employment with a company was terminated in South Carolina due to a reduction in

workforce. Which statement best describes the state's requirements for disbursement of the final pay? A) Within 48 hours B) By the last day of the following month C) On the next business day D) Within two weeks

54) Karter is terminated by a company in Alabama. According to state regulations, when must

Karter receive the final pay? A) On the next business day B) No standardized state guidelines exist C) Within seven business days D) At the next schedule payday

55) A firm needs to destroy paper payroll records after the end of the retention period. Which of

the following is not an option for destruction purposes? A) Shredding B) Discarding C) Pulping D) Burning

56) Ellis is the payroll clerk for a firm that maintains its payroll through computerized records on

a centralized server at the company headquarters. One of the responsibilities is employee file maintenance, including the destruction of records after the retention time has elapsed. His method of purging employee records is to delete the file from the database. What other record destruction procedures should Ellis follow? A) None. The method is acceptable. B) They should check all other employees' computers to ensure that the record is deleted. C) They should purge the record from the server. D) They should send an interoffice request to have someone in the information technology department remove the record from the server.

57) What is the difference between termination and resignation, as far as final pay is concerned? A) Resignation pay may be paid at the next regular pay date, but termination pay is

subject to state law. B) Resignation and termination pay are subject to state regulations. C) Resignation pay must be paid within one week and termination pay must be the next business day. D) Resignation pay must be paid on the next business day and termination pay is due immediately.

58) Upon termination, which of the following must be included in an employee’s final pay? A) B) C) D)

Hours worked Vacation previously paid Severance pay Sick time accrued but not used

59) A payroll accountant is preparing the final pay for a commission-based salesperson who has

resigned from the firm. What will happen to the salesperson's commissions that have been earned but not paid? A) The salesperson must receive resignation pay immediately and forfeits all unpaid commissions. B) The salesperson's final pay is delayed to allow for computation of commissions. C) The final pay must include all commissions earned, in accordance with any pay agreement. D) The employee must receive final non-commission pay immediately, but any commission pay will be delayed.

60) What types of records does IRS Regulation 26 CFR 1.6001 not cover? A) Manual pay records B) Computerized pay records C) Outsourced payroll records D) Independent contractor remittance

61) Well-designed internal controls prevent: A) legal compliance and file integrity. B) opportunities for defalcation. C) protection against embezzlement. D) audit trail support.

62) All executive compensation must be: A) maintained in a file and purged annually. B) available for inspection by any interested party. C) annotated as to derivation and benchmarks. D) reported with the company's financial statements.

63) Individuals classified as ________ are paid as vendors of a firm. A) exempt employees B) nonexempt employees C) government contract employees D) independent contractors

64) ________ payroll is processed twice per month and will usually result in a higher gross pay

per pay period than ________ payroll. A) Weekly; monthly B) Semimonthly; biweekly C) Biweekly; semimonthly D) Daily; biweekly

65) Form I-9 is issued by the ________ to verify employment eligibility in the United States. A) Internal Revenue Service B) Department of Homeland Security C) Federal Bureau of Investigation D) Department of Labor

66) Personnel in certain full-time occupations such as life insurance sales are classified as

________ instead of independent contractors. A) contract employees B) executive workers C) statutory employees D) non-statutory workers

67) FATCA enforcement has been difficult because the Internal Revenue Service relies on

________ for reporting purposes. A) intermediaries (e.g., banks) B) employers and employees C) foreign countries D) personal income tax returns

68) ________ pay is based on manufacturing revenue, while ________ pay is based on sales

revenue. A) Exempt; nonexempt B) Commission; overtime C) Piece-rate; commission D) Commission; piece-rate

69) Verification of hours worked and pay accuracy is part of the ________. A) disbursement cycle B) accounts payable reconciliation C) CEO's responsibility D) payroll review process

70) IRS Regulation 26 CFR 1.6001 mandates ________ procedures as they pertain to payroll

records, noting that it is the responsibility of the ________. A) file maintenance; employer B) payroll review; payroll supervisor C) check authorization; controller D) employee time review; department manager

71) Upon termination from a firm, the employer must disburse the former employee's final pay

________. A) immediately B) within 24 hours C) at the next scheduled payday D) in accordance with state law

72) Payroll records that pertain to employees who have committed fraud or other illegal actions

must be ________. A) retained for two years B) destroyed immediately C) retained indefinitely D) released to law enforcement officials

73) What is the difference in pay practices between salaried exempt and salaried nonexempt

workers? A) Salaried exempt workers may only work eight hours per day. B) Salaried nonexempt workers must not work overtime hours. C) Salaried exempt workers must work between 45 and 50 hours per week. D) Salaried nonexempt workers may be eligible for overtime pay.

74) Rio is a salaried exempt worker whose standard workday consists of eight-hour shifts.

During a workweek, Rio exceeded eight hours of work on two separate days but did not exceed 40 hours during the work week. What is the FLSA provision for the time worked past eight hours in a single day? A) He must be compensated at overtime rates for any hours past eight in a single day. B) He must reduce the time he works on subsequent days to avoid overtime pay. C) He must alert his manager of the extra time on the next business day. D) No specific FLSA provision exists for work completed in excess of eight hours in a 24-hour period.

75) According to the Fair Labor Standards Act, nonexempt workers receive overtime for: A) hours worked in excess of 8 per day and 30 per week. B) hours worked in excess of 40 per week. C) hours worked in excess of 9 per day or 35 per week. D) hours worked in excess of employer-determined rules.

76) Orion is a nonexempt employee who works for a firm that has an elected workweek

composed of four 10-hour days and pays overtime after 40 hours worked per week. What is the rule about overtime for the work situation? A) Orion must be compensated for all hours worked past 8 in a single day. B) Orion will receive overtime pay when working more than 10 hours during a shift. C) Orion receives overtime only when she works past 40 hours in any given week. D) Orion is not eligible for overtime pay.

77) Which of the following is an example of an exempt salaried employee? A) Machine Operator B) Accounting Clerk C) Administrative Assistant D) Controller

78) A ________ employee is not eligible for company benefits whereas a ________ employee is

eligible. A) independent contractor; temporary B) temporary; part-time C) leased; temporary D) temporary; leased

79) The IRS stipulates that no more than ________ percent of a company’s employees may be

leased employees. A) 10 B) 20 C) 30 D) 40

80) Leased employees may not have the following characteristic: A) they must work full-time. B) they must work part-time. C) the recipient company must substantially direct their work activities. D) a formal agreement between the employee and employer must exist.

81) Regulation ________ mandated disclosure of paycard-related information and fees to

employees. A) E B) H C) P D) Z

82) Which of the following is true about independent contractors within the context of payroll? A) B) C) D)

They are employees of the company. A temporary working relationship must exist. Tools and facilities are provided by the employer. The worker controls hours worked and exercises judgment.

Answer Key Test name: Chapter 2 1) TRUE 2) FALSE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) TRUE 10) TRUE 11) A 12) A 13) B 14) A 15) D 16) C 17) D 18) B 19) B 20) A 21) A 22) C 23) C 24) A 25) D 26) B 27) C 28) A 29) D 30) D 31) D 32) C 33) B 34) B 35) C 36) C 37) A

38) B 39) A 40) A 41) D 42) B 43) A 44) C 45) B 46) C 47) B 48) D 49) C 50) B 51) D 52) D 53) A 54) B 55) B 56) C 57) A 58) A 59) C 60) D 61) B 62) C 63) D 64) B 65) B 66) C 67) A 68) C 69) D 70) A 71) D 72) C 73) D 74) D 75) B 76) C 77) D

78) D 79) B 80) B 81) D 82) D

Chapter 3:__________ 1) Net pay is the amount of employee compensation prior to deducting any amounts for taxes or

other withholdings. ⊚ true ⊚ false

2) Salaried employees may be classified as nonexempt. ⊚ true ⊚ false

3) A firm is exempt from FLSA provisions if it engages in interstate commerce. ⊚ true ⊚ false

4) The tipped minimum wage is the same as the federal minimum wage for all states. ⊚ true ⊚ false

5) Federal policy clearly explains which employees qualify for exempt status. ⊚ true ⊚ false

6) To compute the hourly rate for an employee with a 35-hour standard workweek, you would

divide the annual salary by 1,820. ⊚ true ⊚ false

7) Commission-based pay is used for employees who participate materially in the sale of

manufacturing components. ⊚ true ⊚ false

8) The quarter-hour system promotes more accuracy in employee time collection than the

hundredth-hour system. ⊚ true ⊚ false

9) The payroll register is published to all company employees. ⊚ true ⊚ false

10) To rule the payroll register means that the payroll accountant double-underlines final totals. ⊚ true ⊚ false

11) The payroll register should be retained for the same amount of time as other payroll

documents. ⊚ true ⊚ false

12) An employee who is paid on a piece rate basis may request a payroll draw against future

earnings. ⊚ true ⊚ false

13) Compensatory time is federally mandated for all exempt employees. ⊚ true ⊚ false

14) Nonexempt employees are usually workers who: A) are not in a supervisory role. B) are exempt from certain company rules. C) occupy executive positions in the company. D) routinely perform managerial tasks.

15) Which of the following automatically exempts an employer from FLSA provisions? A) The firm has annual volume of greater than $100,000. B) The firm is a school for physically handicapped children. C) The firm is a governmental agency. D) The firm conducts no interstate commerce.

16) The difference between the federal minimum wage and the tipped wage involves: A) an examination of state and local laws for the job type. B) an employee's qualifications for the job. C) the size of the town in which the employer is located. D) supervisory reviews about the employee's performance.

17) Which of the following is never true about employees who are subject to the tipped wage

minimum? A) The minimum wage for tipped employees is consistent among all states. B) They are paid the minimum wage for the state or local area. C) They earn occasional tips from other employees. D) They earn more than 10% of their income from tips.

18) Stirling is a tipped employee who earns a wage of $2.13 per hour in a tip-credit state and

works a standard 40-hour workweek. Last week, they earned $160 in tips. Which of the following is true? A) Stirling does not have to report their tips for the week because they were less than $75. B) Stirling’s employer may not report their tips for income tax purposes. C) Stirling’s employer must pay them the tip credit because her wages and tips for the week were less than the federal minimum wage. D) Stirling must file a request with their employer to have the tip credit applied to the wages for the week.

19) Rio is a minimum wage employee in Peoria, Illinois, where the minimum wage is $13.00 per

hour. Rio’s employer claims that since the federal minimum wage is $7.25 per hour, Rio should only receive the federal amount, although the business engages in interstate commerce. What is the correct answer in this situation? A) The employer has the discretion to pay either the federal or the state-designated minimum wage. B) The employer may choose to pay less than the state-designated minimum wage, based on the employee's qualifications and job description. C) The employer is correct that the federal minimum wage overrules the state wage. D) The employer must pay the state-designated minimum wage for the area.

20) Arden is a live-in domestic worker for a family. What is the FLSA sleep time requirement? A) The family must allow Arden to sleep three hours per day. B) Arden is not subject to sleep-time requirements. C) The family must allot eight hours of sleep time, of which five hours must be

consecutive. D) Since the family conducts no interstate commerce, FLSA provisions do not apply.

21) The minimum wage for salaried employees is: A) $455 per week. B) $916 per week. C) $762 per week. D) $684 per week.

22) Which of the following is true about salaried employees? A) They are subject to all FLSA provisions. B) The minimum wage is $7.25 per hour. C) They may not work more than 45 hours per week. D) The minimum annual salary is $35,568.

23) Kendall earns a salary of $37,550 per year as a nonexempt employee with a 35-hour standard

workweek. What is the hourly rate? Note: Round to the nearest cent. A) $16.04 per hour B) $18.05 per hour C) $20.63 per hour D) $21.58 per hour

24) Finley is a salaried, nonexempt worker who earns $29,350 per year and has a standard 45-

hour workweek. What is the hourly rate? Note: Round final answer to the nearest cent. A) $10.97 per hour B) $11.75 per hour C) $12.54 per hour D) $14.10 per hour

25) Finley is a salaried, nonexempt worker who earns $28,950 per year and has a standard 45-

hour workweek. What is the hourly rate? Note: Round final answer to the nearest cent. A) $10.78 per hour B) $11.57 per hour C) $12.37 per hour D) $13.91 per hour

26) Morgan is a salaried, nonexempt employee who earns $39,400 for a standard 35-hour

workweek. During a biweekly pay period, Morgan worked 4.0 hours overtime. What is the overtime hourly rate? Note: Do not round intermediate calculation. Round final answer to the nearest cent. A) $21.65 per hour B) $28.07 per hour C) $32.47 per hour D) $37.72 per hour

27) Morgan is a salaried, nonexempt employee who earns $37,400 for a standard 35-hour

workweek. During a biweekly pay period, Morgan worked 3.5 hours overtime. What is the overtime hourly rate? Note: Do not round intermediate calculation. Round final answer to the nearest cent. A) $23.97 per hour B) $26.97 per hour C) $30.82 per hour D) $35.96 per hour

28) Carter is a salaried, nonexempt worker with a standard workweek of 40 hours. During the

last weekly pay period, they earned $105.98 in overtime pay for 5 hours overtime. What is the annual salary? Note: Do not round intermediate calculations. Round final answer to the nearest whole dollar. A) $33,064 B) $25,717 C) $34,088 D) $29,392

29) Clarke works as a clerk in the human resources department for her company and receives an

hourly rate of $16.25. Occasionally Clarke fills in for the receptionist at the front desk and receives a $1.50 per hour differential. During a weekly pay period, Clarke worked 35 hours in the human resources department and 5 hours at the front desk. What is Clarke's gross pay for the week? A) $650.00 B) $710.00 C) $657.50 D) $702.50

30) Clarke works as a clerk in the human resources department for her company and receives an

hourly rate of $14.75. Occasionally Clarke fills in for the receptionist at the front desk and receives a $1.50 per hour differential. During a weekly pay period, Clarke worked 35 hours in the human resources department and 5 hours at the front desk. What is Clarke's gross pay for the week? A) $590.00 B) $650.00 C) $597.50 D) $642.50

31) Darby works in the warehouse for a company and receives $15.45 per hour. Darby

occasionally works in the Quality Assurance (QA) department as a receiving clerk and earns a 15% differential for hours worked there. During a two-week pay period, Darby worked 72 hours in the warehouse and 12 hours in the QA department. Darby worked all overtime hours in the warehouse. The standard workweek is 40 hours. What is Darby’s gross pay for the pay period? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,236.00 B) $1,328.70 C) $1,356.51 D) $1,515.10

32) Arrow is an outside salesperson for a firm in Iowa. Arrow earns an 8% commission on all

sales she makes. During a one-week pay period, Arrow made $4,650 in sales. What is her gross pay? How much does her employer need to contribute toward her pay to meet FLSA standards? A) $372; $0 B) $465; $0 C) $332; $58 D) $375; $35

33) Arrow is an outside salesperson for a firm in Iowa. Arrow earns an 8% commission on all

sales she makes. During a one-week pay period, Arrow made $3,650 in sales. What is her gross pay? How much does her employer need to contribute toward her pay to meet FLSA standards? A) $292; $0 B) $365; $0 C) $252; $38 D) $275; $15

34) Vesper works at Hemshaw Paper Mill as a machine operator. Which of the following pay

bases would be the most appropriate? A) Hourly B) Salary C) Commission D) Piece-rate

35) Roux is an exempt employee whose annual pay is $53,600 for 40 hours per week. During a

two-week period, company employees were given a two-day holiday. What is Roux's regular pay and holiday pay for the period? Note: Do not round intermediate calculations. Round final answers to 2 decimal places. A) $1,884.84; $471.21 B) $1,649.23; $412.31 C) $2,144.00; $536.00 D) $1,529.74; $603.92

36) Ziv is an inside salesperson who earns a base annual salary of $163,800 plus a 5%

commission on total sales that he makes during the pay period. During a biweekly period, Ziv made $114,660 in sales. What is Ziv's gross pay for the period? A) $12,558 B) $12,478 C) $12,033 D) $11,858

37) Ziv is an inside salesperson who earns a base annual salary of $39,000 plus a 5% commission

on total sales that he makes during the pay period. During a biweekly period, Ziv made $27,500 in sales. What is Ziv's gross pay for the period? A) $3,000 B) $2,920 C) $2,875 D) $2,750

38) Trinity is a piece-rate worker in Mississippi who earns $11.35 per completed unit. During a

35-hour workweek, Trinity completed 48 units. What is Trinity's hourly rate? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. A) $15.57 per hour B) $13.62 per hour C) $12.10 per hour D) $14.53 per hour

39) Sparrow works the following hours during a one-week period: Day Hours Minutes Monday 7 42 Tuesday 8 6 Wednesday 7 37 Thursday 7 58 Friday 8 47

Under the hundredth-hour method, how many hours has Sparrow worked? Note: Do not round intermediate calculations. A) 40.00 hours B) 40.17 hours C) 40.63 hours D) 41.07 hours

40) Sparrow works the following hours during a one-week period: Day Hours Minutes Monday 7 42 Tuesday 8 6 Wednesday 7 37 Thursday 7 58 Friday 8 47

Under the quarter-hour method, how many hours has Sparrow worked? A) 40.00 hours B) 40.17 hours C) 40.63 hours D) 41.07 hours

41) Sacha is an hourly worker whose employer uses the hundredth-hour method. During a one-

week period, Sacha worked the following hours: Day Monday Tuesday Wednesday Thursday Friday

In 8:09 7:48 8:03 7:56 7:58

Out 12:02 11:55 12:22 12:14 12:02

In 1:07 12:54 1:20 1:26 1:07

Out 5:17 5:01 5:12 4:59 4:55

Using the hundredth-hour method, how many hours did Sacha work that week? Note: Round your intermediate calculations and final answer to 2 decimal places. A) 39.90 hours B) 39.87 hours C) 40.03 hours D) 40.18 hours

42) Sacha is an hourly worker whose employer uses the quarter-hour method. During a one-week

period, Sacha worked the following hours: Day Monday Tuesday Wednesday Thursday Friday

In 8:09 7:48 8:03 7:56 7:58

Out 12:02 11:55 12:22 12:14 12:02

In 1:07 12:54 1:20 1:26 1:07

Out 5:17 5:01 5:12 4:59 4:55

Using the quarter-hour method, how many hours did Sacha work that week? A) 39.75 hours B) 40.00 hours C) 40.25 hours D) 41.25 hours

43) Byrd is an hourly worker and earns $17.85 per hour. During a week's pay period, Byrd

worked the following hours and minutes: Day Monday Tuesday Wednesday Thursday Friday

Hours 8 7 8 9 8

Minutes 09 43 36 02 14

Using the hundredth-hour method, what is Byrd's gross pay for the week? The employer pays overtime for all time worked in excess of 40 hours per week. Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $735.12 B) $745.60 C) $760.41 D) $753.34

44) Stirling is a salaried nonexempt worker who earns $54,500 per year for a 40-hour workweek.

During a weekly pay period, Stirling worked the following hours: Day Monday Tuesday Wednesday Thursday Friday

Hours 8 8 9 7 8

Minutes 15 22 09 57 41

The employer uses a hundredth-hour method to compute overtime pay. The employer pays overtime for all time worked in excess of 40 hours per week. What is Stirling's gross pay for the week? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,110.88 B) $1,124.56 C) $1,142.40 D) $1,168.24

45) River is a salaried exempt worker who earns $72,830 per year for a 35-hour workweek.

During a biweekly pay period, River worked 105 hours. What is the gross pay? A) $2,519.23 B) $2,801.15 C) $3,033.94 D) $3,499.52

46) River is a salaried exempt worker who earns $72,630 per year for a 45-hour workweek.

During a biweekly pay period, River worked 105 hours. What is the gross pay? A) $2,511.54 B) $2,793.46 C) $3,026.25 D) $3,491.83

47) Taylor is a salaried exempt worker who earns $48,680 per year for a 35-hour workweek.

During a semimonthly pay period, Taylor worked 65 hours. What is the gross pay? A) $1,738.57 B) $1,872.31 C) $2,028.33 D) $2,167.85

48) Emery is an hourly worker who earns $15.25 per hour and is paid overtime for any time over

40 hours per week. During a weekly period, Emery worked the following hours: Day Monday Tuesday Wednesday Thursday Friday

In 7:53 7:42 7:48 8:08 7:35

Out 12:04 11:30 12:35 12:22 12:13

In 13:15 12:35 13:28 13:45 13:15

Out 17:25 16:45 17:25 17:37 16:42

What is Emery’s gross pay for the week using both quarter-hour and hundredth hour methods? Note: Round your intermediate calculations and final answer to 2 decimal places. A) $625.00; $628.00 B) $625.25; $628.76 C) $632.88; $638.14 D) $642.14; $646.22

49) Spencer is an hourly employee who earns $17.65 per hour. Spencer is paid overtime only for

hours worked past 40 in one week. During a weekly pay period, Spencer worked the following hours: Day Monday Tuesday Wednesday Thursday Friday

Hours 8 8 7 9 7

Minutes 23 42 45 13 20

What is the difference between Spencer's pay using the quarter-hour and the hundredth-hour methods? Which method pays Spencer the greater amount? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $3.09; Quarter-hour B) $9.71; Quarter-hour C) $10.29; Quarter-hour D) $10.29; Hundredth-hour

50) The purpose of using combination pay methods is to: A) smooth employee pay by prioritizing projects by pay. B) cross-train employees in various company functions. C) offer employees an incentive for decreased performance. D) meet minimum wage requirements and offer pay for performance.

51) Remi is a regional supervisor who earns a base salary of $45,000 per year plus a 3%

commission on all service contracts they sell to existing customers. The company pays salaries on a semimonthly basis and contract commissions on a quarterly basis. As of June 30, Remi had made $28,150 in contract sales for the third quarter. What will be the gross pay on her next pay date? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,875.00 B) $2,584.88 C) $2,719.50 D) $2,972.50

52) Remi is a regional supervisor who earns a base salary of $42,000 per year plus a 3%

commission on all service contracts they sell to existing customers. The company pays salaries on a semimonthly basis and contract commissions on a quarterly basis. As of June 30, Remi had made $27,650 in contract sales for the third quarter. What will be the gross pay on her next pay date? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,750.00 B) $2,444.88 C) $2,579.50 D) $2,832.50

53) Alexis is an inside salesperson who earns an annual salary of $46,550 (paid biweekly) plus a

commission on quarterly sales that is paid on the first pay date on the next quarter. She receives a 1% commission for quarterly sales totaling $0 to $25,000, a 2% commission for quarterly sales totaling between $25,001 and $50,000, and a 3% commission for quarterly sales totaling over $50,001. During the second quarter, Alexis's quarterly sales totaled $75,950. What is the gross pay for the first pay period in July? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,790.38 B) $2,549.88 C) $3,309.38 D) $4,068.88

54) Rio works for a bakery as a cake decorator and receives a base annual salary of $30,000 (paid

weekly) as well as piece-rate pay of $175 for decorating wedding cakes. Rio’s piece-rate earnings are totaled on a monthly basis and are paid on the first pay date of the following month. During the month of June, Rio decorated 18 wedding cakes with a total retail value of $4,850. What is Rio's gross pay for the first week in July? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $4,400.00 B) $5,650.00 C) $3,726.92 D) $4,303.85

55) Lux is a college professor who earns an annual salary of $45,000. Lux performs an additional

function as a tutor in the student center, for which the pay is $27.00 per hour. During a biweekly pay period, Lux worked 7.5 hours in the student center. What is Lux's gross pay for the period? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,933.27 B) $2,077.50 C) $2,034.52 D) $2,178.50

56) Rebel is a salaried nonexempt employee who earns $36,950 annually, paid semimonthly,

plus a 1.5% commission on all regional sales, paid monthly on the first pay date of the following month. During May, the regional sales were $103,500. What was Rebel’s gross pay for the first half of June? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $2,573.58 B) $2,973.65 C) $3,092.08 D) $3,259.58

57) Xen is a real-estate salesperson whose compensation is commission-only. Xen earns a 3%

commission on the sale price of each house that she sells and receives half of that commission at the end of each month (the broker retains the rest per the employment agreement). During June, Xen sold five houses totaling $1,042,970. What is the gross pay for the month of July? A) $7,822.28 B) $15,644.55 C) $20,824.40 D) $31,289.10

58) Xen is a real-estate salesperson whose compensation is commission-only. Xen earns a 3%

commission on the sale price of each house that she sells and receives half of that commission at the end of each month (the broker retains the rest per the employment agreement). During June, Xen sold five houses totaling $1,035,970. What is the gross pay for the month of July? A) $7,769.78 B) $15,539.55 C) $20,719.40 D) $31,079.10

59) Wyatt is a salesperson who receives an annual salary of $24,000 paid semimonthly plus

commissions of 5% of the retail price of each unit he sells, paid on the final pay date of the month. During his first month of employment, Wyatt sold four units with a total retail price of $7,000 and requested a 5% draw against his $15,000 monthly minimum sales, in accordance with his employment agreement. How much should Wyatt receive in his gross pay for the end of his first month? A) $1,000.00 B) $1,350.00 C) $1,750.00 D) $2,100.00

60) During his first month of employment, Haskell took a draw of 5% against his minimum sales

amount of $15,000 in monthly sales that must be deducted from his pay during the first month that he reaches his minimum sales amount. He receives $33,600 annually in base salary plus a 5% commission on his sales. He receives his base salary on a semimonthly basis and receives his commissions on the final pay date of each month. During his second month of employment, Haskell sold $42,500 of equipment. What is Haskell's gross pay for the end of the second month of employment? A) $2,150.00 B) $2,125.00 C) $2,775.00 D) $3,525.00

61) During his first month of employment, Haskell took a draw of 5% against his minimum sales

amount of $15,000 in monthly sales that must be deducted from his pay during the first month that he reaches his minimum sales amount. He receives $24,000 annually in base salary plus a 5% commission on his sales. He receives his base salary on a semimonthly basis and receives his commissions on the final pay date of each month. During his second month of employment, Haskell sold $40,000 of equipment. What is Haskell's gross pay for the end of the second month of employment? A) $1,750.00 B) $2,000.00 C) $2,250.00 D) $3,000.00

62) Orion is the CFO for a firm that uses ISOs as part of its executive compensation plan. Orion

receives $120,000 annually, paid semimonthly, in base salary plus 750 shares of the firm's stock per month. The stock is omitted from gross pay calculations and is valued at $10.00 per share and he may exercise the stock option within five years at $100.00 per share. What is Orion's gross pay for mid-October? A) $5,000 B) $7,500 C) $10,000 D) $12,500

63) Shawn is a salaried nonexempt employee who earns an annual salary of $55,000 for a 35-

hour workweek, paid biweekly. The employer pays overtime for any hours worked in excess of 35 per week. During a pay period, Shawn worked 72 hours. Shawn has requested to take compensatory time in lieu of paid overtime. How much compensatory time should she receive, assuming her firm approves the compensatory time? A) 2 hours B) 3.5 hours C) 3 hours D) 6 hours

64) Shawn is a salaried nonexempt employee who earns an annual salary of $52,500 for a 40-

hour workweek, paid biweekly. The employer pays overtime for any hours worked in excess of 40 per week. During a pay period, Shawn worked 86 hours. Shawn has requested to take compensatory time in lieu of paid overtime. How much compensatory time should she receive, assuming her firm approves the compensatory time? A) 6 hours B) 7.5 hours C) 9 hours D) 12 hours

65) Terry is a salaried nonexempt employee who earns annually $48,750 for a 35-hour workweek

that is paid semimonthly. Terry is occasionally on-call for his employer. During the on-call time, Terry is required to be available for phone calls and must have internet access but is otherwise able to pursue personal interests. Company policy allows for four hours of regular pay for each day that the employee is on-call. How much should Terry's gross pay be for a pay period with three days on-call? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $2,031.25 B) $2,138.41 C) $2,352.68 D) $2,513.47

66) Jules is an employee who is required to be on-call at the employer's site once per month for

eight hours. Jules earns a salary of $38,000 per year for a 37.5-hour workweek and is paid biweekly. What is Jules' gross pay for a pay period that includes on-call time? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,461.54 B) $1,617.44 C) $1,695.39 D) $1,739.23

67) Bodhi is the driver for a company executive. Bodhi is paid $13.50 per hour for services and

overtime only for hours worked in excess of 40 hours per week. The actual driving time varies, depending on the needs of the executive. Which of the following is true about Bodhi's compensation? A) Bodhi must maintain a log of miles driven to document work activities. B) Bodhi will be compensated only for the driving hours. C) Bodhi will only receive compensation for wait time when it is for the executive’s benefit. D) Bodhi will not receive compensation for idle times when idle during the executive’s meetings.

68) Reily is a surgical resident at a busy metropolitan hospital. Reily regularly works 24-48 hour

shifts as a part of her duties. What must the employer do, according to the FLSA? A) Give Reily appropriate clothing. B) Give Reily three hours to sleep and deduct those hours from pay. C) Give Reily a minimum of five consecutive hours sleep time per 24 hours of the shift. D) Give Reily additional time off after a long shift.

69) Beckett is in the second month of work for her employer. Beckett is 18 years of age. The

working hours, computed on a quarter-hour basis, were as follows for the current weekly pay period: Day Monday Tuesday Wednesday Thursday Friday

Hours 8 7 7 8 8

Minutes 15 15 45 15 30

Beckett receives the minimum wage, according to the 1996 FLSA Amendment. What is the gross pay for the week using actual hours? A) $290.00 B) $246.50 C) $170.00 D) $125.00

70) Lennon is a full-time college student and is 19 years of age. Lennon’s employer has the

option to pay less than the Federal minimum wage. What is the minimum hourly rate that Lennon may receive? A) $7.25 per hour B) $6.16 per hour C) $5.80 per hour D) $4.25 per hour

71) Which of the following is a class of worker that may receive an hourly rate below the federal

minimum wage? A) Disabled employees in occupations related to their disability. B) 18-year-old student in a vocational education program. C) A 23-year-old employee in the first 90 days of work. D) A student learner working at a local fast-food restaurant.

72) Saylor is a full-time student in a legal assisting program at a vocational education institution.

Saylor works part-time for a legal aid center as a legal assistant and worked 17.5 hours during the last weekly pay period. What should Saylor's gross pay be for that week? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $290.00 B) $170.00 C) $147.25 D) $95.16

73) Mason travels among client sites as a routine part of employment. Travel time to the first

customer site and from the last customer site to home are not compensated. Under which of the following circumstances will Mason be compensated for travel? A) Travel from the client site to a personal dinner engagement at the end of the workday. B) Travel between client sites and the firm's office. C) Travel from her home to the client site at the beginning of the workday. D) Travel to home from a client site at the end of the workday.

74) Dashiell is a 22-year-old worker in Bowling Green, Kentucky. What is the minimum wage

Dashiell must be paid? A) No minimum wage exists B) $7.25 per hour C) $8.25 per hour D) $9.50 per hour

75) The difference between the tipped employee minimum wage and the federal minimum wage

is called the _________. A) cash wage B) tip credit C) employer credit D) wage base

76) A nonexempt, salaried worker who received $39,750 in annual compensation for a 35-hour

standard workweek has an overtime rate of _________blank . Note: Do not round intermediate calculations. Round the final answer to the nearest cent. A) $25.35 B) $30.24 C) $32.76 D) $28.41

77) A nonexempt, salaried worker who received $38,250 in annual compensation for a 35-hour

standard workweek has an overtime rate of _________ . Note: Do not round intermediate calculations. Round the final answer to the nearest cent. A) $24.53 B) $29.42 C) $31.52 D) $27.59

78) Lennon, a salaried nonexempt employee, earns a salary of $52,750 for a standard 45-hour

workweek and is paid weekly. During a weekly period, Lennon worked 4 hours of overtime. The gross pay for the week would be _________ . Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,478.16 B) $1,379.62 C) $1,149.68 D) $1,293.39

79) Arlo is a cook at a local restaurant and earns $11.20 per hour. Arlo occasionally serves as the

crew chief, which received additional pay of $3.00 per hour. During a biweekly pay period, Arlo had the following time data: Cook: 80 hours (including 8 hours overtime) Crew chief: 13 hours Arlo’s gross pay for the pay period would be _________ . Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,320.60 B) $1,080.60 C) $991.00 D) $1,125.40

80) Grey is a piece-rate worker who creates custom molds for a ceramics manufacturer. During a

35-hour workweek, Grey created 18 molds at a piece rate of $27.95 per mold. Grey’s hourly rate during the workweek is _________. Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $14.37 B) $12.58 C) $22.64 D) $27.95

81) Rory is compensated using a salary-plus-commission basis for completed work. Rory’s

annual base salary is $24,000. During a semimonthly pay period, Rory made $38,500 in sales, and receives a 4% commission. Rory’s gross pay for the semimonthly period is _________. Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,540.00 B) $1,000.00 C) $1,770.00 D) $2,540.00

82) Dawson worked 88 hours during a biweekly period. The company’s standard workweek is 40

hours and company policy states that employees may receive overtime or compensatory time for hours worked in excess of 40 at a rate of 1.5 times the number of hours worked. Dawson has requested compensatory time in lieu of overtime, in keeping with company policy. Dawson must receive _________ hours of compensatory time. A) 18 B) 16 C) 12 D) 8

83) Reese, 18 years of age, is an hourly worker in their college's bookstore in New Hampshire.

Reese works 25 hours during a two-week pay period in the second month of work for the bookstore. The minimum gross pay that Reese may receive for that two-week period is _________. Note: Round to the nearest cent. A) $181.25 B) $106.25 C) $154.06 D) $135.94

84) Lincoln is a full-time student at an automotive repair vocational school. Lincoln works for a

local car repair garage and works 30 hours per week. The minimum wage is the same as the federal minimum wage. Lincoln’s gross pay per week is _________. Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $217.50 B) $290.00 C) $184.88 D) $163.13

85) Which of the following best describes the purpose of the payroll register? A) It is a list of all persons that the company pays money during a period. B) It is a report that accompanies the company’s annual report. C) It is an internal worksheet only used to maintain payroll accuracy. D) It is an individual register maintained for each employee.

86) Which of the following items would appear as a column on a payroll register? A) Hiring date B) Bank account number C) Social Security number D) Hours worked

87) Comparing the sum of rows and columns is known by the term: A) compute. B) total. C) prove. D) rule.

88) What does it mean to rule the payroll register? A) Gaining approval to disburse payroll amounts. B) Double-underlining the totals. C) Ensuring that the sum of the column totals equals the sum of the row totals. D) Computing the column and row totals.

89) According to the FLSA, when must overtime be paid to exempt employees? A) Any time the employee works more than 8 hours per day. B) Only when the employee works in excess of 80 hours during a week period. C) Any hours worked in excess of 40 in a 7-day, 168-hour period. D) Exempt employees are not subject to overtime provisions of the FLSA.

90) Ainsley is a nonexempt employee who earns $19 per hour and has a standard 40-hour

workweek. During a weekly pay period, Ainsley worked 47.5 hours. What is Ainsley's gross pay for the period? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $973.75 B) $600.00 C) $790.00 D) $1,027.50

91) Aspen is a salaried nonexempt employee who earns $47,500 per year. During a biweekly pay

period, Aspen worked 78 hours. The company’s standard workweek is 35 hours. What is Aspen's gross pay for the period? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,826.92 B) $1,983.52 C) $2,140.11 D) $2,322.12

92) Celyn is a tipped employee in Idaho. The minimum cash wage in Idaho is $3.35 per hour for

a 40-hour workweek. The tip credit in Idaho is $3.90 per hour, and tips are NOT included in overtime calculations. During a one-week period, Celyn worked 48 hours and earned $180 in tips. What is Celyn’s gross pay? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $354.20 B) $470.00 C) $340.80 D) $382.80

93) August is a wedding cake designer who earns $250 per completed cake. August earns the

federal minimum wage (i.e., $7.25 per hour) for non-productive time during a 40-hour workweek. During a weekly pay period, August worked 45 hours, 4 of which were nonproductive time, and completed 10 cakes. What is August's gross pay? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $2,500.00 B) $2,790.00 C) $2,529.00 D) $2,900.00

94) Jagger is a nonexempt employee at Beryl Companies, and works in both the manufacturing

and design departments. Jagger is paid biweekly, and he earns $19 per hour in the manufacturing department and $26.50 per hour in the design department. During the most recent biweekly pay period, Jagger worked a total of 89 hours, 20 of which were in the design department. All overtime was in the manufacturing department. What is Jagger’s gross pay? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $1,396.50 B) $1,670.00 C) $1,926.50 D) $1,841.00

95) Harper is a doctor who works at Marlboro Central Hospital, which has different shift lengths.

During a two-week period, Harper worked 92 hours. Under the _________ rule, how many hours worked would be considered as overtime? A) 4 and 40; 12 hours B) 4 and 40; 2 hours C) 8 and 80; 12 hours D) 8 and 80; 2 hours

Answer Key Test name: Chapter 3 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) TRUE 12) FALSE 13) FALSE 14) A 15) D 16) A 17) A 18) C 19) D 20) C 21) D 22) D 23) C 24) C 25) C 26) C 27) C 28) D 29) C 30) C 31) C 32) A 33) A 34) A 35) B 36) C 37) C

38) A 39) B 40) A 41) D 42) C 43) C 44) C 45) B 46) B 47) C 48) C 49) A 50) D 51) C 52) C 53) D 54) C 55) A 56) C 57) B 58) B 59) D 60) C 61) C 62) A 63) C 64) C 65) C 66) B 67) C 68) C 69) C 70) B 71) B 72) D 73) B 74) B 75) B 76) C 77) C

78) C 79) D 80) A 81) D 82) C 83) B 84) D 85) C 86) D 87) C 88) B 89) D 90) A 91) C 92) A 93) C 94) C 95) C

Chapter 4:__________ 1) Fringe benefits may only comprise nonmonetary compensation given to employees in return

for their service to the company. ⊚ true ⊚ false

2) Fringe benefits must be available to all company employees. ⊚ true ⊚ false

3) Fringe benefits may be part of an employee's compensation package. ⊚ true ⊚ false

4) Premiums for insurance purchased through qualified cafeteria plans may reduce an

employee’s income tax liability. ⊚ true ⊚ false

5) Flexible Spending Arrangements (FSAs) may have a “use it or lose it” provision for unused

funds contributed by the employee. ⊚ true ⊚ false

6) Noncash fringe benefits may be reported on the employee's Form W-2 as income. ⊚ true ⊚ false

7) Fringe benefits descriptions, rules, and exceptions are explained in IRS Publication 15-b. ⊚ true ⊚ false

8) The general valuation rule uses the fair market value approach to determine the value of

fringe benefits. ⊚ true ⊚ false

9) Post-tax deductions may be either voluntary or mandatory. ⊚ true ⊚ false

10) The special accounting rule allows benefits provided in the last two months of the calendar

year to be reporting during the following calendar year. ⊚ true ⊚ false

11) Which of the following items may not be deducted on a pre-tax basis? A) Cafeteria plan B) Garnishments C) Health insurance D) Retirement plan

12) Which statement best describes the purpose of fringe benefits? A) They are intended to increase employee income without being subject to tax. B) They are designed to increase employee job satisfaction. C) They reduce the company’s revenue and net income goals. D) They add privileges for certain company employees.

13) Which of the following is a hallmark of fringe benefits? A) The benefit improves employees' living conditions. B) The ability to receive the benefit relates directly to performance. C) Only certain employees have access to the benefit. D) Employee welfare remains unaffected by the benefit.

14) If a fringe benefit involves a deduction from employee pay, which of the following is true? A) Employers may only offer the benefit to certain classes of employees. B) The employee must enroll in direct deposit or use a paycard to receive their pay. C) The fringe benefit is always subject to income tax. D) A list of itemized deductions must appear on the employee's pay advice.

15) Which of the following is true about Section 125 cafeteria plans? A) It allows employees access to the company’s cafeteria at no extra cost. B) Insurance premiums and other selected expenses may be paid with pre-tax dollars. C) All items in a cafeteria plan are exempt from Social Security and Medicare taxes. D) Fringe benefits are always considered part of a cafeteria plan.

16) Health Savings Accounts may not be used as pre-tax deductions for which type of costs? A) Child medical expenses B) Gasoline expenses C) Long-term medical care expenses D) Prescription expenses

17) Which of the following is not an includible medical expense in Section 125 cafeteria plans? A) Ambulance service B) Over-the-counter medicines C) Hearing aids D) Braille books and magazines

18) Contributions to FSAs in excess of what annual amount (as of 2023) are treated as taxable

income? A) $3,050 B) $3,250 C) $2,750 D) $3,100

19) Which of the following must accompany a High-Deductible Health Plan (HDHP) to be

considered part of a cafeteria plan? A) FSA B) POP C) HSA D) IRA

20) What are hallmarks of Flexible Spending Accounts (FSAs) and Health Savings Accounts

(HSAs)? A) Amounts contributed may not be rolled over from one year to the next. B) FSAs expire on an annual basis but HSAs continue perpetually. C) FSA and HSA contributions must be used in their entirety each year. D) Only HSAs may be deducted from employee on a pre-tax basis.

21) Which of the following is true about excluded fringe benefits? A) They must be part of the employer's cafeteria plan. B) The cash value of excluded fringe benefits is always taxable. C) Excluded fringe benefits are not always a taxable part of employee pay. D) Excluded fringe benefits are generally reported on the employee's W-2.

22) According to Publication 15-b, what is the annual cash value limit for excluded non-qualified

achievement awards (as of 2023)? A) $400 B) $800 C) $1,200 D) $1,600

23) Under what condition is an employer-offered gym membership fringe benefit taxable? A) When the employer has on-site facilities that are only available to employees B) When the gym membership is not on the employer’s premises or added to an

employee’s taxable compensation C) When the employer has on-site gym facilities that are open to public use D) When the gym membership is a required element of the employee’s job

24) Which of the following is true about employer-provided snacks and meals? A) Occasionally provided snacks and meals are considered de minimis. B) Snacks and meals provided on a regular basis are considered de minimis. C) Holiday parties and meals provided at special gatherings are always taxable. D) All employer-provided snacks and meals are taxable.

25) What method may not be used to determine the taxable amount of the personal use of a

company car? A) Lease-value rule B) Commuting rule C) Cents-per-mile rule D) Replacement value rule

26) Under the lease-value rule, how is the taxable income for the employee determined? A) Use the annual lease value amount for the vehicle from Publication 15b. B) Multiply the lease amount by the age of the vehicle. C) Subtract the dollar amount of the fuel used for personal purposes. D) Estimate the dollar amount associated with personal usage of the vehicle.

27) Quinn is an employee of Caribbean Imports. His company car is a 2023 Toyota Prius LXE

with a fair-market value of $30,000 and a lease value of $8,250, according to Publication 15b. During the year, Quinn drove 36,953 miles, of which 6,822 were for personal use. The car was available for use on 250 of the days during the year. All gasoline was provided by the employer and is charged back to Quinn at $0.0585 per mile. What is the amount of the company-car fringe benefit that will appear on Quinn's W-2, using the lease-value rule? Note: Do not round intermediate calculations, only round final answer to 2 decimal places. A) $375.21 B) $1,043.19 C) $1,442.28 D) $5,650.68

28) Finley is an employee who drives a 2023 Ford C-Max with a fair-market value of $32,000.

Finley has been given the choice to have the fringe benefit reported on the W-2 either using the lease-value rule or the cents-per mile rule. The lease value is $8,750, according to Publication 15-b. Finley drove 30,258 miles, 7,552 of it was for personal use. All gasoline was provided by the employer and the amount for personal use was charged back to Finley at $0.0585 per mile. If the car was available for 175 days during the year, what is the prorated annual lease percentage, using the lease-value rule? Note: Do not round intermediate calculations, only round final answer to two decimal points. A) 47.95% B) 48.61% C) 52.05% D) 69.75%

29) Rene is an employee and drives a 2023 Chevrolet Volt as a company car. The fair-market

value of the car is $44,000 and the lease value is $11,750, according to Publication 15-b. The car has been available for 300 days during the year and Rene has driven 6,750 of 28,350 miles for personal use. Rene pays for the fuel. What is the percentage of miles driven for personal use, using the lease-value rule? Note: Do not round intermediate calculations, only round final answer to 2 decimal places. A) 23.81% B) 76.19% C) 28.31% D) 71.69%

30) Quinn is an employee of Caribbean Imports. Quinn’s company car is a 2023 Toyota Prius

LXE with a fair-market value of $30,000 and a lease value of $8,250, according to Publication 15-b. During the year, Quinn drove 36,953 miles, of which 6,822 were for personal use. The car was available for use on 250 of the days during the year. All gasoline was provided by the employer and is charged back to Quinn at $0.0585 per mile. What is the percentage of personal use by Quinn? Note: Do not round intermediate calculations, only round final answer to two decimal places. A) 68.49% B) 35.97% C) 18.46% D) 6.64%

31) Finley is an employee who drives a 2023 Ford C-Max with a fair-market value of $32,000.

The lease value is $8,750, according to Publication 15-b. Finley drove 30,258 miles, 7,552 of it was for personal use. All gasoline was provided by the employer and the amount for personal use was charged back to Finley at $0.0585 per mile. What is the percentage of personal use by Finley? Note: Do not round intermediate calculations, only round final answer to 2 decimal places. A) 76.66% B) 41.10% C) 24.96% D) 58.90%

32) What is the purpose of the cents-per-mile rule as it pertains to the valuation of a company car

fringe benefit? A) The cents-per-mile rule must be used for IRS reporting. B) The cents-per-mile rule considers all mileage driven as personal. C) The cents-per-mile rule considers all insurance and maintenance costs. D) The cents-per-mile rule forbids personal use of the company vehicle.

33) Oakley is a government employee who is provided a car for commuting and other work-

related purposes only. In the last calendar year, Oakley’s commute is 24 miles each way for 220 days. What is the amount of the company-car fringe benefit that will appear on Oakley’s W-2? Note: Do not round intermediate calculations. A) $10,560.00 B) $15,840.00 C) $7,920.00 D) $12,450.00

34) Remy works for a governmental agency and is given a car for work-related and commute

purposes. During the last calendar year, Remy worked 250 days and had a commute of 7 miles each direction. What is the amount of the company-car fringe benefit that will appear on Remy’s W-2? Note: Do not round intermediate calculations. A) $10,500.00 B) $3,500.00 C) $2,625.00 D) $5,250.00

35) Finley is an employee who drives a 2022 Ford C-Max with a fair-market value of $32,000.

The lease value is $8,750, according to Publication 15-b. Finley drove 30,258 miles, 7,552 of it was for personal use. All gasoline was provided by the employer and is charged back to Finley at $0.055 per mile. The car was available for 175 days during the year. What method and valuation will yield the lowest fringe-benefit amount for Finley? Note: Do not round intermediate calculations, only round final answer to 2 decimal places. A) Lease-value, $4,229.12 B) Cents-per-mile, $4,229.12 C) Lease-value, $1,462.43 D) Cents-per-mile, $1,462.43

36) Oakley is an employee and drives a 2022 Chevrolet Volt as a company car. The fair-market

value of the car is $44,000 and the lease value is $11,750, according to Publication 15-b. Oakley has been given the choice to have the fringe benefit reported on the W-2 either using the lease-value rule or the cents-per mile rule. According to Publication 15-b, the lease value is $7,750. The car has been available for 300 days during the year and Oakley has driven 6,750 of 28,350 miles for personal use. Oakley's employer pays for all fuel. What method and valuation will yield the lowest fringe-benefit amount for Oakley? Note: Do not round intermediate calculations, only round final answer to 2 decimal places. A) Lease-value, $3,780.00 B) Cents-per-mile, $3,780.00 C) Lease value, $2,670.66 D) Cents-per-mile, $2,670.66

37) Which fringe benefit valuation rule does not permit employees to use a company vehicle for

personal purposes as a fringe benefit? A) Lease-value rule B) Cents-per-mile rule C) Commuter rule D) Mileage reimbursement rule

38) Under the unsafe conditions rule: A) an employee may use a company vehicle for a one-way commute. B) employees may only use company cars if their normal travel mode is unavailable. C) employees may leave work at any time. D) employees pay $1.50 for the one-way commute.

39) According to the Consumer Credit Protection Act, what is the maximum percentage of an

employee's disposable earnings (over the federal minimum weekly earnings) that may be subject to a U.S. government debt garnishment? A) 10% B) 15% C) 20% D) 25%

40) Which of the following, according to the IRS, disqualifies a health plan for pre-tax status? A) An employer's self-insured plan B) COBRA health coverage C) Cancer and accident policies D) Retiree health coverage

41) The primary difference between pre-tax and post-tax deductions is: A) post-tax deductions reduce tax obligations. B) pre-tax deductions do not include child support. C) pre-tax deductions increase tax liability. D) post-tax deductions increase gross pay.

42) Which is true about most retirement plans? A) They are exempt from all taxes. B) They always contain an employer contribution. C) They always include employee contribution. D) They are protected by ERISA.

43) Which of the following is not a mandated post-tax deduction? A) Charitable Contributions B) Child Support C) U.S. federal tax lien D) Credit card garnishment

44) Employer contributions to employee health insurance must be: A) added to Federal taxable wages. B) reported in Social Security wages. C) reported in State taxable wages. D) reported on the employee’s Form W-2.

45) What is true about supplemental health and disability insurance premiums? A) It is subject to income taxes. B) It is subject to FICA taxes. C) It is not subject to income taxes. D) It is deducted on a post-tax basis.

46) Which of the following is not a post-tax deduction? A) Employee contributions to gym memberships B) Employee contributions to 401(k) plans C) Employee contributions to charitable organizations D) Employee contributions to union dues

47) Under the Affordable Care Act, what is a rule for a dependent to be covered under a parent's

health plan? A) The dependent must be under the age of 21. B) The parent must be an employee covered by a nonqualified cafeteria plan. C) Dependents under the age of 26 are covered. D) All employer-sponsored health plans qualify.

48) What is true about the health insurance, according to the Affordable Care Act? A) All health insurance premiums are taxable for employees. B) Dependents over the age of 21 may not be included in employer-sponsored coverage. C) The employee must provide all elements of minimum essential coverage. D) The employer may charge worker’s compensation insurance premiums to the

employee.

49) What is the difference between a defined benefit and a defined contribution retirement plan? A) Defined contribution plans allow employees to determine a set amount to receive

during retirement. B) Defined benefit plans allow employees to determine a specific amount of money they wish to contribute toward their retirement plan. C) The employer guarantees a specific retirement income for defined benefit plans. D) Defined benefit plans allow employees to set aside money on a tax-exempt basis.

50) Which of the following is not an example of a defined contribution plan? A) IRA B) Pension C) SIMPLE D) 403(b)

51) Which of the following is true about 403(b) retirement plans? A) All 403(b) plans are cafeteria plans. B) 403(b) plans are exempt from all payroll taxes. C) 403(b) plans reduce income tax liability. D) 403(b) plans are not subject to FICA taxes.

52) What is the major limitation of a 457 retirement plan? A) It is limited to firms with 100 or fewer employees. B) Employee contributions to the plan are limited. C) 457 plans are subject to all payroll taxes. D) 457 plans are offered to governmental and certain non-governmental employees.

53) What differentiates 401(k) and an ESOP? A) 401(k) plans are limited to companies with more than 100 employees. B) ESOP plans are subject to all payroll taxes. C) ESOP offers company stock while a 401(k) involves an employee contribution. D) 401(k) plans are offered by non-profit employers.

54) Which of the following is not a post-tax mandated deduction? A) Charitable contributions B) Garnishments C) Credit card liens D) Tax liens

55) According to Consumer Credit Protection Act, what is a limit on the amount of a

garnishment for student loans with respect to federal minimum wage weekly earnings? A) It must be less than 50% of an employee’s gross earnings. B) It may be 75% of the employee’s disposable income. C) It must be a minimum of 10% of an employee’s annual salary. D) It cannot exceed 15% of an employee’s disposable income.

56) What is the limit on garnishments for personal bankruptcy? A) It may not exceed 15% of an employee's disposable income. B) It may be up to 50% of an employee's disposable income. C) An additional 5% may be added for any lien payments in arrears. D) It must be the lower 25% of disposable income or 30 times the weekly income over

federal minimum wage.

57) What is the term for an account set aside for an individual in a bank or mutual fund account? A) IRA B) SIMPLE C) ESOP D) SEP

58) In which type of retirement plan does the employer setup a tax-favorable IRA to which the

employer contributes? A) SEP B) SIMPLE C) ESOP D) 401(k)

59) Which date facilitates the employer’s issuance of Form W-2 for all employees? A) B) C) D)

December 31 January 31 February 28 March 31

60) If a fringe benefit is an investment, when does the investment transfer occur? A) At the end of the calendar year B) When the employee cashes out the benefit C) Immediately upon receipt D) When the amount of the employee contribution is withheld

61) Pre-tax retirement fund contributions are usually subject to _________ tax. A) State withholding B) Federal withholding C) FICA D) Local withholding

62) Fringe benefit values must be decided by _________. A) The date they are disbursed B) January 31 of the next year C) Prior to employment D) The lesser of the book or fair market value

63) Under the special accounting rule, benefits offered only during the last _________ of the

year may be treated as paid during the following calendar year. A) two weeks B) two months C) two days D) two quarters

64) When should an employer deposit amounts withheld for employee benefits? A) At the end of the fiscal year B) At the end of the quarter C) At the same time as tax deposits are made D) At the earliest business day after a pay period

65) One place for the reporting of employee fringe benefits is on the _________. A) Form W-2 B) Payroll register C) Form SS-8 D) Form W-4

66) One common area of benefits errors is _________. A) incorrect computation of gross pay B) incorrect reporting of taxable income C) incorrect use of hardship distributions D) incorrect benefit offerings

67) De minimis fringe benefits include _________. A) matching of FICA taxes B) long-term disability employer payments C) non-cash, low-value birthday gifts D) medical insurance premiums

68) Post-tax deductions are always amounts _________. A) voluntarily chosen by the employee B) mandated by a legal authority C) that reduce employee pay after all taxes have been deducted D) that only satisfy garnishments

69) _________ benefits are never exempt from FICA taxes. A) Dependent care assistance B) Education assistance C) Health savings accounts D) Adoption assistance

70) Group-term life insurance must appear on the employee’s W-2 after it exceeds _________. A) B) C) D)

$10,000 $25,000 $40,000 $50,000

71) Employees benefit from POPs because they reduce _________. A) income tax liability B) cash paid to employees C) FICA tax liability D) employee turnover

72) Employee contributions to their FSA that exceed _________ in 2023 must be treated as

taxable income. A) $2,750 B) $3,050 C) $3,550 D) $5,000

73) The cash value of employee achievement awards in excess of _________ must be included as

taxable income on the employee's W-2. A) $800 B) $1,000 C) $1,400 D) $1,600

74) The choice of fringe-benefit valuation method is at the discretion of the _________. A) employee B) company C) state D) IRS

75) Married employees over age 55 with a high-deductible health plan may contribute a

maximum of _________ to a health savings account in 2023. A) $4,650 B) $5,600 C) $8,750 D) $9,200

76) Which of the following is true of Health Savings Accounts? A) All funds contributed are the property of the employer. B) Any funds contributed must be used annually. C) Permitted for employees and independent contractors. D) Employees must report all funds used with their personal tax returns.

77) The minimum amount of gift cards received from the employer that must be reported on the

employee’s Form W-2 is _________. A) $0 B) $100 C) $250 D) $400

78) A High Deductible Health Plan (HDHP) has a family out-of-pocket maximum of _________

in 2023. A) $2,800 B) $5,600 C) $7,500 D) $15,000

79) If an employee receives more than _________ in education assistance from their employer, it

must be reported as taxable income on Form W-2. A) $2,550 B) $4,250 C) $5,250 D) $7,250

80) The Families First Coronavirus Response Act included that employers with fewer than 500

employees must provide certain benefits, including: A) paid sick leave for both part-time and full-time employees. B) provision of diagnostic testing subject to health insurance. C) full-time pay for all employees who were unable to telecommute because of symptoms. D) employer-sponsored unemployment programs if business operations decreased due to health concerns.

81) Employees are taxed for _________ use of company-provided vehicles. A) business B) personal C) dependent D) excessive

Answer Key Test name: Chapter 4 1) FALSE 2) TRUE 3) TRUE 4) TRUE 5) TRUE 6) TRUE 7) TRUE 8) TRUE 9) TRUE 10) TRUE 11) B 12) B 13) A 14) D 15) C 16) B 17) B 18) A 19) C 20) B 21) D 22) A 23) B 24) A 25) D 26) A 27) C 28) A 29) A 30) C 31) C 32) C 33) B 34) D 35) C 36) C 37) C

38) D 39) B 40) C 41) B 42) D 43) A 44) D 45) B 46) B 47) C 48) C 49) C 50) B 51) C 52) D 53) C 54) A 55) D 56) D 57) A 58) A 59) B 60) D 61) C 62) B 63) B 64) C 65) A 66) C 67) C 68) C 69) D 70) D 71) A 72) B 73) D 74) B 75) C 76) D 77) A

78) D 79) C 80) A 81) B

Chapter 5:__________ 1) Computation of net pay involves deducting only mandatory deductions from gross pay. ⊚ true ⊚ false

2) Federal income tax, Medicare tax, and Social Security tax amounts withheld from employee

pay are computed based on gross pay less all pre-tax deductions. ⊚ true ⊚ false

3) The amount of federal income tax withheld is based on the information reported on the

employee’s Form W-4. ⊚ true ⊚ false

4) The percentage method of computing federal tax withholding yields more accurate amounts

than the wage-bracket method. ⊚ true ⊚ false

5) The Social Security tax wage base indicates the maximum calendar-year employee earnings

subject to Social Security tax. ⊚ true ⊚ false

6) The Medicare tax deduction for workers is 1.45% of taxable gross wages. ⊚ true ⊚ false

7) If a firm has employees in multiple states, it may choose one of those state’s income tax laws

for all employees. ⊚ true ⊚ false

8) Garnishments are court-ordered amounts that an employer must withhold from an employee's

post-tax pay and remit the amount to the appropriate authority. ⊚ true ⊚ false

9) Retirement plan contributions are an example of post-tax voluntary deductions. ⊚ true ⊚ false

10) Paycards as a means of disbursing employee pay is beneficial for unbanked employees. ⊚ true ⊚ false

11) Which is not a step in computing net pay for each period? A) Collect Form W-4 B) Compute gross pay C) Compute taxes to be withheld D) Report fringe benefit balances

12) Which of the following items forms the connection between payroll and human resources? A) Employee Information Form B) Compute gross pay C) Form I-9 D) Supervisor Payroll Report

13) Which of the following steps is not used to compute an employee’s grossed-up pay? A) B) C) D)

Compute the sum of the income tax and FICA tax rates. Multiply the gross pay by the sum of the income tax and FICA tax rates. Subtract the sum of the income tax rate and FICA tax rate from 100 percent. Divide the net pay by the net tax rate.

14) Which of the following affects an employee’s federal tax withholding for Form W-4 dated

2020 or later? A) Nature of the employee's job B) State in which the employee resides C) Spouse’s age D) Additional income

15) Which of the following statements is true about Social Security tax deductions from gross

pay? A) B) C) D)

The tax rate is 6.0%. The tax is computed on all earnings. All Section 125 deductions are subject to Social Security tax. The wage base is $160,200.

16) Which of the following statements is true about Medicare tax? A) Employee earnings less all pre-tax deductions are subject to Medicare tax. B) Employers match all Medicare taxes withheld. C) The Medicare tax rate for most employees is 1.45%. D) Additional Medicare tax is withheld for employees who earn more than $150,000

annually.

17) Which of the following states does not have state income tax deducted from employee pay? A) South Dakota B) Montana C) California D) Vermont

18) Which of the following is used in the determination of the amount of federal income tax to be

withheld from an employee per pay period? A) Date of birth B) Total deductions C) Marital status D) Prior year's tax return

19) What role does the employer play regarding an employee's FICA tax? A) Collector and depositor B) Reporter and depositor C) Collector and verifier D) Verifier and reporter

20) Jaylin is an employee with a period gross pay of $2,895.00. Jaylin elects to have 5% of the

gross pay withheld for his 401(k) contribution and has no other pre-tax deductions. What will Jaylin’s taxable income be for federal income taxes? A) $2,895.00 B) $2,750.25 C) $2,808.15 D) $2,880.53

21) Jaylin is an employee with a period gross pay of $2,755. Jaylin elects to have 5% of the gross

pay withheld for his 401(k) contribution and has no other pre-tax deductions. What will Jaylin’s taxable income be for federal income taxes? A) $2,755.00 B) $2,617.25 C) $2,672.35 D) $2,741.23

22) Justice earned $1,060.00 during the most recent semimonthly pay period. Justice is single

and has indicated checkbox withholding, has no pre-tax deductions, and has filed a 2023 Form W-4. Using the following table, how much should be withheld for federal income tax? Note: Use the wage-bracket table. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later SEMIMONTHLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withholdi 4, Step withholdi 4, Step withholdi 4, Step than ng 2, ng 2, ng 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 0 $ 10 $ 0 $ 24 $ 10 $ 42 670 685 $ $ $ 0 $ 12 $ 0 $ 26 $ 12 $ 44 685 700 $ $ $ 0 $ 13 $ 0 $ 27 $ 13 $ 46 700 715 $ $ $ 0 $ 15 $ 0 $ 29 $ 15 $ 47 715 730 $ $ $ 0 $ 16 $ 0 $ 30 $ 16 $ 49 730 745 $ $ $ 0 $ 18 $ 0 $ 32 $ 18 $ 51 745 760 $ $ $ 0 $ 19 $ 0 $ 34 $ 19 $ 53 760 775 $ $ $ 0 $ 21 $ 0 $ 35 $ 21 $ 55 775 790 $ $ $ 0 $ 22 $ 0 $ 37 $ 22 $ 56 790 805 $ $ $ 0 $ 24 $ 0 $ 39 $ 24 $ 58 805 820 $ $ $ 0 $ 25 $ 0 $ 41 $ 25 $ 60 820 835 $ $ $ 0 $ 27 $ 0 $ 43 $ 27 $ 62 835 850

$ 850 $ 865 $ 880 $ 895 $ 910 $ 925 $ 940 $ 955 $ 970 $ 985 $ 1,0 00 $ 1,0 15 $ 1,0 30 $ 1,0 45 $ 1,0 60 $ 1,0 75 $ 1,0 90

$ 865 $ 880 $ 895 $ 910 $ 925 $ 940 $ 955 $ 970 $ 985 $ 1,0 00 $ 1,0 15 $ 1,0 30 $ 1,0 45 $ 1,0 60 $ 1,0 75 $ 1,0 90 $ 1,1 05

$ 0

$ 28

$ 0

$ 44

$ 28

$ 64

$ 0

$ 30

$ 1

$ 46

$ 30

$ 65

$ 0

$ 31

$ 2

$ 48

$ 31

$ 67

$ 0

$ 33

$ 4

$ 50

$ 33

$ 69

$ 0

$ 34

$ 5

$ 52

$ 34

$ 71

$ 0

$ 36

$ 7

$ 53

$ 36

$ 73

$ 0

$ 37

$ 8

$ 55

$ 37

$ 74

$ 0

$ 39

$ 10

$ 57

$ 39

$ 76

$ 0

$ 40

$ 11

$ 59

$ 40

$ 78

$ 0

$ 42

$ 13

$ 61

$ 42

$ 80

$ 0

$ 43

$ 14

$ 62

$ 43

$ 82

$ 0

$ 45

$ 16

$ 64

$ 45

$ 83

$ 0

$ 46

$ 17

$ 66

$ 46

$ 85

$ 0

$ 48

$ 19

$ 68

$ 48

$ 87

$ 0

$ 50

$ 20

$ 70

$ 50

$ 89

$ 0

$ 51

$ 22

$ 71

$ 51

$ 91

$ 0

$ 53

$ 23

$ 73

$ 53

$ 92

A) $48.00

B) $89.00 C) $50.00 D) $88.00

23) Justice earned $1,000.00 during the most recent semimonthly pay period. Justice is single

$ 850 $ 865 $ 880 $ 895 $ 910 $ 925 $ 940 $ 955 $ 970 $ 985 $ 1,0 00 $ 1,0 15 $ 1,0 30 $ 1,0 45 $ 1,0 60 $ 1,0 75 $ 1,0 90

$ 865 $ 880 $ 895 $ 910 $ 925 $ 940 $ 955 $ 970 $ 985 $ 1,0 00 $ 1,0 15 $ 1,0 30 $ 1,0 45 $ 1,0 60 $ 1,0 75 $ 1,0 90 $ 1,1 05

$ 0

$ 28

$ 0

$ 44

$ 28

$ 64

$ 0

$ 30

$ 1

$ 46

$ 30

$ 65

$ 0

$ 31

$ 2

$ 48

$ 31

$ 67

$ 0

$ 33

$ 4

$ 50

$ 33

$ 69

$ 0

$ 34

$ 5

$ 52

$ 34

$ 71

$ 0

$ 36

$ 7

$ 53

$ 36

$ 73

$ 0

$ 37

$ 8

$ 55

$ 37

$ 74

$ 0

$ 39

$ 10

$ 57

$ 39

$ 76

$ 0

$ 40

$ 11

$ 59

$ 40

$ 78

$ 0

$ 42

$ 13

$ 61

$ 42

$ 80

$ 0

$ 43

$ 14

$ 62

$ 43

$ 82

$ 0

$ 45

$ 16

$ 64

$ 45

$ 83

$ 0

$ 46

$ 17

$ 66

$ 46

$ 85

$ 0

$ 48

$ 19

$ 68

$ 48

$ 87

$ 0

$ 50

$ 20

$ 70

$ 50

$ 89

$ 0

$ 51

$ 22

$ 71

$ 51

$ 91

$ 0

$ 53

$ 23

$ 73

$ 53

$ 92

A) $42.00

B) $82.00 C) $43.00 D) $80.00

24) Ember earned $1,920.00 during the most recent semimonthly pay period. Ember is married

filing jointly, has not indicated Step 2 checkbox withholding, has no pre-tax deductions, and has filed a 2023 Form W-4. Based on the following table, how much should be withheld from Ember’s gross pay for Federal income tax? Note: Use the wage-bracket table. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later SEMIMONTHLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Jointly Filing Separately Wage Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form W-4, least less withholdi 4, Step withhold 4, Step withholdi Step 2, than ng 2, ing 2, ng Checkbox Checkbox Checkbox withholdi withhold withhold ng ing ing The Tentative Withholding Amount is: $ $ $ 38 $ 106 $ 67 $ 126 $ $ 1,5 1,5 106 176 25 45 $ $ $ 40 $ 108 $ 70 $ 128 $ $ 1,5 1,5 108 181 45 65 $ $ $ 42 $ 111 $ 72 $ 130 $ $ 1,5 1,5 111 185 65 85 $ $ $ 44 $ 113 $ 74 $ 133 $ $ 1,5 1,6 113 190 85 05 $ $ $ 46 $ 115 $ 77 $ 135 $ $ 1,6 1,6 115 194 05 25 $ $ $ 48 $ 118 $ 79 $ 138 $ $ 1,6 1,6 118 198 25 45 $ $ $ 50 $ 120 $ 82 $ 140 $ $ 1,6 1,6 120 203 45 65 $ $ $ 52 $ 123 $ 84 $ 142 $ $ 1,6 1,6 123 207 65 85

$ 1,6 85 $ 1,7 05 $ 1,7 25 $ 1,7 45 $ 1,7 65 $ 1,7 85 $ 1,8 05 $ 1,8 25 $ 1,8 45 $ 1,8 65 $ 1,8 85 $ 1,9 05 $ 1,9 25 $ 1,9 45

$ 1,7 05 $ 1,7 25 $ 1,7 45 $ 1,7 65 $ 1,7 85 $ 1,8 05 $ 1,8 25 $ 1,8 45 $ 1,8 65 $ 1,8 85 $ 1,9 05 $ 1,9 25 $ 1,9 45 $ 1,9 65

$ 54

$ 125

$ 86

$ 146

$ 125

$ 212

$ 56

$ 127

$ 89

$ 151

$ 127

$ 216

$ 58

$ 130

$ 91

$ 155

$ 130

$ 220

$ 60

$ 132

$ 94

$ 160

$ 132

$ 225

$ 62

$ 135

$ 96

$ 164

$ 135

$ 229

$ 64

$ 137

$ 98

$ 168

$ 137

$ 234

$ 66

$ 139

$ 101

$ 173

$ 139

$ 238

$ 68

$ 142

$ 103

$ 177

$ 142

$ 242

$ 70

$ 144

$ 106

$ 182

$ 144

$ 247

$ 72

$ 147

$ 108

$ 186

$ 147

$ 251

$ 74

$ 149

$ 110

$ 190

$ 149

$ 256

$ 76

$ 151

$ 113

$ 195

$ 151

$ 260

$ 78

$ 154

$ 115

$ 199

$ 154

$ 264

$ 80

$ 156

$ 118

$ 204

$ 156

$ 269

$ 1,9 65 $ 1,9 85 $ 2,0 05 $ 2,0 25

$ 1,9 85 $ 2,0 05 $ 2,0 25 $ 2,0 45

A) B) C) D)

$76.00 $151.00 $109.00 $176.00

$ 82

$ 159

$ 120

$ 208

$ 159

$ 273

$ 84

$ 161

$ 122

$ 212

$ 161

$ 278

$ 86

$ 163

$ 125

$ 217

$ 163

$ 282

$ 88

$ 166

$ 127

$ 221

$ 166

$ 286

25) Ember earned $1,740.00 during the most recent semimonthly pay period. Ember is married

$ 1,6 85 $ 1,7 05 $ 1,7 25 $ 1,7 45 $ 1,7 65 $ 1,7 85 $ 1,8 05 $ 1,8 25 $ 1,8 45 $ 1,8 65 $ 1,8 85 $ 1,9 05 $ 1,9 25 $ 1,9 45

$ 1,7 05 $ 1,7 25 $ 1,7 45 $ 1,7 65 $ 1,7 85 $ 1,8 05 $ 1,8 25 $ 1,8 45 $ 1,8 65 $ 1,8 85 $ 1,9 05 $ 1,9 25 $ 1,9 45 $ 1,9 65

$ 54

$ 125

$ 86

$ 146

$ 125

$ 212

$ 56

$ 127

$ 89

$ 151

$ 127

$ 216

$ 58

$ 130

$ 91

$ 155

$ 130

$ 220

$ 60

$ 132

$ 94

$ 160

$ 132

$ 225

$ 62

$ 135

$ 96

$ 164

$ 135

$ 229

$ 64

$ 137

$ 98

$ 168

$ 137

$ 234

$ 66

$ 139

$ 101

$ 173

$ 139

$ 238

$ 68

$ 142

$ 103

$ 177

$ 142

$ 242

$ 70

$ 144

$ 106

$ 182

$ 144

$ 247

$ 72

$ 147

$ 108

$ 186

$ 147

$ 251

$ 74

$ 149

$ 110

$ 190

$ 149

$ 256

$ 76

$ 151

$ 113

$ 195

$ 151

$ 260

$ 78

$ 154

$ 115

$ 199

$ 154

$ 264

$ 80

$ 156

$ 118

$ 204

$ 156

$ 269

$ 1,9 65 $ 1,9 85 $ 2,0 05 $ 2,0 25

$ 1,9 85 $ 2,0 05 $ 2,0 25 $ 2,0 45

A) B) C) D)

$58.00 $130.00 $91.00 $155.00

$ 82

$ 159

$ 120

$ 208

$ 159

$ 273

$ 84

$ 161

$ 122

$ 212

$ 161

$ 278

$ 86

$ 163

$ 125

$ 217

$ 163

$ 282

$ 88

$ 166

$ 127

$ 221

$ 166

$ 286

26) Jess earned $2,058.50 during the most recent biweekly pay period. Jess contributes $50 per

pay period to his 401(k) plan. Jess is married filing jointly, has standard withholding and has filed a 2023 Form W-4. Based on the following table, how much Federal income tax should be withheld from Jess’s pay? Note: Use the wage-bracket table. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Jointly Filing Separately Wage Amount (line 1h) is At But Standard Form W-4, Standard Form W-4, Standard Form W-4, least less withholdi Step 2, withholdi Step 2, withholdi Step 2, than ng Checkbox ng Checkbox ng Checkbox withholdi withholdi withholdi ng ng ng The Tentative Withholding Amount is: $ $ $ 44 $ 109 $ 73 $ 127 $ 109 $ 183 1,5 1,5 00 20 $ $ $ 46 $ 111 $ 76 $ 130 $ 111 $ 188 1,5 1,5 20 40 $ $ $ 48 $ 114 $ 78 $ 132 $ 114 $ 192 1,5 1,5 40 60 $ $ $ 50 $ 116 $ 80 $ 136 $ 116 $ 197 1,5 1,5 60 80 $ $ $ 52 $ 118 $ 83 $ 141 $ 118 $ 201 1,5 1,6 80 00 $ $ $ 54 $ 121 $ 85 $ 145 $ 121 $ 205 1,6 1,6 00 20 $ $ $ 56 $ 123 $ 88 $ 149 $ 123 $ 210 1,6 1,6 20 40

$ 1,6 40 $ 1,6 60 $ 1,6 80 $ 1,7 00 $ 1,7 20 $ 1,7 40 $ 1,7 60 $ 1,7 80 $ 1,8 00 $ 1,8 20 $ 1,8 40 $ 1,8 60 $ 1,8 80 $ 1,9 00

$ 1,6 60 $ 1,6 80 $ 1,7 00 $ 1,7 20 $ 1,7 40 $ 1,7 60 $ 1,7 80 $ 1,8 00 $ 1,8 20 $ 1,8 40 $ 1,8 60 $ 1,8 80 $ 1,9 00 $ 1,9 20

$ 58

$ 126

$ 90

$ 154

$ 126

$ 214

$ 60

$ 128

$ 92

$ 158

$ 128

$ 219

$ 62

$ 130

$ 95

$ 163

$ 130

$ 223

$ 64

$ 133

$ 97

$ 167

$ 133

$ 227

$ 66

$ 135

$ 100

$ 171

$ 135

$ 232

$ 68

$ 138

$ 102

$ 176

$ 138

$ 236

$ 70

$ 140

$ 104

$ 180

$ 140

$ 241

$ 72

$ 142

$ 107

$ 185

$ 142

$ 245

$ 74

$ 145

$ 109

$ 189

$ 145

$ 249

$ 76

$ 147

$ 112

$ 193

$ 147

$ 254

$ 78

$ 150

$ 114

$ 198

$ 150

$ 258

$ 80

$ 152

$ 116

$ 202

$ 152

$ 263

$ 82

$ 154

$ 119

$ 207

$ 154

$ 267

$ 84

$ 157

$ 121

$ 211

$ 157

$ 271

$ 1,9 20 $ 1,9 40 $ 1,9 60 $ 1,9 80 $ 2,0 00 $ 2,0 20 $ 2,0 40 $ 2,0 60 $ 2,0 80

$ 1,9 40 $ 1,9 60 $ 1,9 80 $ 2,0 00 $ 2,0 20 $ 2,0 40 $ 2,0 60 $ 2,0 80 $ 2,1 00

A) B) C) D)

$96.00 $169.00 $101.00 $174.00

$ 87

$ 159

$ 124

$ 215

$ 159

$ 276

$ 89

$ 162

$ 126

$ 220

$ 162

$ 280

$ 92

$ 164

$ 128

$ 224

$ 164

$ 285

$ 94

$ 166

$ 131

$ 229

$ 166

$ 289

$ 96

$ 169

$ 133

$ 233

$ 169

$ 293

$ 99

$ 171

$ 136

$ 237

$ 171

$ 298

$ 101

$ 174

$ 138

$ 242

$ 174

$ 302

$ 104

$ 176

$ 140

$ 246

$ 176

$ 307

$ 106

$ 178

$ 143

$ 251

$ 178

$ 311

27) Jess earned $1,698.50 during the most recent biweekly pay period. Jess contributes $50 per

$ 1,6 40 $ 1,6 60 $ 1,6 80 $ 1,7 00 $ 1,7 20 $ 1,7 40 $ 1,7 60 $ 1,7 80 $ 1,8 00 $ 1,8 20 $ 1,8 40 $ 1,8 60 $ 1,8 80 $ 1,9 00

$ 1,6 60 $ 1,6 80 $ 1,7 00 $ 1,7 20 $ 1,7 40 $ 1,7 60 $ 1,7 80 $ 1,8 00 $ 1,8 20 $ 1,8 40 $ 1,8 60 $ 1,8 80 $ 1,9 00 $ 1,9 20

$ 58

$ 126

$ 90

$ 154

$ 126

$ 214

$ 60

$ 128

$ 92

$ 158

$ 128

$ 219

$ 62

$ 130

$ 95

$ 163

$ 130

$ 223

$ 64

$ 133

$ 97

$ 167

$ 133

$ 227

$ 66

$ 135

$ 100

$ 171

$ 135

$ 232

$ 68

$ 138

$ 102

$ 176

$ 138

$ 236

$ 70

$ 140

$ 104

$ 180

$ 140

$ 241

$ 72

$ 142

$ 107

$ 185

$ 142

$ 245

$ 74

$ 145

$ 109

$ 189

$ 145

$ 249

$ 76

$ 147

$ 112

$ 193

$ 147

$ 254

$ 78

$ 150

$ 114

$ 198

$ 150

$ 258

$ 80

$ 152

$ 116

$ 202

$ 152

$ 263

$ 82

$ 154

$ 119

$ 207

$ 154

$ 267

$ 84

$ 157

$ 121

$ 211

$ 157

$ 271

$ 1,9 20 $ 1,9 40 $ 1,9 60 $ 1,9 80 $ 2,0 00 $ 2,0 20 $ 2,0 40 $ 2,0 60 $ 2,0 80

$ 1,9 40 $ 1,9 60 $ 1,9 80 $ 2,0 00 $ 2,0 20 $ 2,0 40 $ 2,0 60 $ 2,0 80 $ 2,1 00

A) B) C) D)

$58.00 $126.00 $62.00 $130.00

$ 87

$ 159

$ 124

$ 215

$ 159

$ 276

$ 89

$ 162

$ 126

$ 220

$ 162

$ 280

$ 92

$ 164

$ 128

$ 224

$ 164

$ 285

$ 94

$ 166

$ 131

$ 229

$ 166

$ 289

$ 96

$ 169

$ 133

$ 233

$ 169

$ 293

$ 99

$ 171

$ 136

$ 237

$ 171

$ 298

$ 101

$ 174

$ 138

$ 242

$ 174

$ 302

$ 104

$ 176

$ 140

$ 246

$ 176

$ 307

$ 106

$ 178

$ 143

$ 251

$ 178

$ 311

28) Kennedy earned $1,100 during the most recent biweekly pay period. Kennedy contributes

5% of her gross pay to the 401(k) plan. Kennedy is single and claimed the standard withholding on the 2023 Form W-4. Based on the following table, how much Federal income tax should be withheld from Kennedy’s pay? Note: Use the wage-bracket table. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Jointly Filing Separately Wage Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withholdi 4, Step withhold 4, Step withhold 4, Step than ng 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 0 $ 44 $ 17 $ 62 $ 44 $ 80 960 975 $ $ $ 0 $ 46 $ 18 $ 64 $ 46 $ 82 975 990 $ $ $ 0 $ 47 $ 20 $ 66 $ 47 $ 84 990 1,0 05 $ $ $ 0 $ 49 $ 21 $ 67 $ 49 $ 85 1,0 1,0 05 20 $ $ $ 0 $ 51 $ 23 $ 69 $ 51 $ 87 1,0 1,0 20 35 $ $ $ 0 $ 53 $ 24 $ 71 $ 53 $ 89 1,0 1,0 35 50 $ $ $ 0 $ 55 $ 26 $ 73 $ 55 $ 91 1,0 1,0 50 65 $ $ $ 1 $ 56 $ 27 $ 75 $ 56 $ 93 1,0 1,0 65 80

$ 1,0 80 $ 1,0 95 $ 1,1 10 $ 1,1 25 $ 1,1 40 $ 1,1 60 $ 1,1 80 $ 1,2 00 $ 1,2 20 $ 1,2 40 $ 1,2 60 $ 1,2 80 $ 1,3 00 $ 1,3 20

$ 1,0 95 $ 1,1 10 $ 1,1 25 $ 1,1 40 $ 1,1 60 $ 1,1 80 $ 1,2 00 $ 1,2 20 $ 1,2 40 $ 1,2 60 $ 1,2 80 $ 1,3 00 $ 1,3 20 $ 1,3 40

$ 2

$ 58

$ 29

$ 76

$ 58

$ 94

$ 4

$ 60

$ 30

$ 78

$ 60

$ 96

$ 5

$ 62

$ 32

$ 80

$ 62

$ 98

$ 7

$ 64

$ 33

$ 82

$ 64

$ 100

$ 8

$ 66

$ 35

$ 84

$ 66

$ 104

$ 10

$ 68

$ 37

$ 86

$ 68

$ 109

$ 12

$ 70

$ 39

$ 89

$ 70

$ 113

$ 14

$ 73

$ 41

$ 91

$ 73

$ 117

$ 16

$ 75

$ 43

$ 94

$ 75

$ 122

$ 18

$ 78

$ 45

$ 96

$ 78

$ 126

$ 20

$ 80

$ 47

$ 98

$ 80

$ 131

$ 22

$ 82

$ 49

$ 101

$ 82

$ 135

$ 24

$ 85

$ 51

$ 103

$ 85

$ 139

$ 26

$ 87

$ 53

$ 106

$ 87

$ 144

$ 1,3 40 $ 1,3 60 $ 1,3 80

$ 1,3 60 $ 1,3 80 $ 1,4 00

A) B) C) D)

$0.00 $53.00 $72.00 $25.00

$ 28

$ 90

$ 55

$ 108

$ 90

$ 148

$ 30

$ 92

$ 57

$ 110

$ 92

$ 153

$ 32

$ 94

$ 59

$ 113

$ 94

$ 157

29) Kennedy earned $1,120 during the most recent biweekly pay period. Kennedy contributes

$ 1,0 80 $ 1,0 95 $ 1,1 10 $ 1,1 25 $ 1,1 40 $ 1,1 60 $ 1,1 80 $ 1,2 00 $ 1,2 20 $ 1,2 40 $ 1,2 60 $ 1,2 80 $ 1,3 00 $ 1,3 20

$ 1,0 95 $ 1,1 10 $ 1,1 25 $ 1,1 40 $ 1,1 60 $ 1,1 80 $ 1,2 00 $ 1,2 20 $ 1,2 40 $ 1,2 60 $ 1,2 80 $ 1,3 00 $ 1,3 20 $ 1,3 40

$ 2

$ 58

$ 29

$ 76

$ 58

$ 94

$ 4

$ 60

$ 30

$ 78

$ 60

$ 96

$ 5

$ 62

$ 32

$ 80

$ 62

$ 98

$ 7

$ 64

$ 33

$ 82

$ 64

$ 100

$ 8

$ 66

$ 35

$ 84

$ 66

$ 104

$ 10

$ 68

$ 37

$ 86

$ 68

$ 109

$ 12

$ 70

$ 39

$ 89

$ 70

$ 113

$ 14

$ 73

$ 41

$ 91

$ 73

$ 117

$ 16

$ 75

$ 43

$ 94

$ 75

$ 122

$ 18

$ 78

$ 45

$ 96

$ 78

$ 126

$ 20

$ 80

$ 47

$ 98

$ 80

$ 131

$ 22

$ 82

$ 49

$ 101

$ 82

$ 135

$ 24

$ 85

$ 51

$ 103

$ 85

$ 139

$ 26

$ 87

$ 53

$ 106

$ 87

$ 144

$ 1,3 40 $ 1,3 60 $ 1,3 80

$ 1,3 60 $ 1,3 80 $ 1,4 00

A) B) C) D)

$0.00 $55.00 $73.00 $26.00

$ 28

$ 90

$ 55

$ 108

$ 90

$ 148

$ 30

$ 92

$ 57

$ 110

$ 92

$ 153

$ 32

$ 94

$ 59

$ 113

$ 94

$ 157

30) Parker is single, has indicated checkbox withholding on the 2023 Form W-4, and has no pre-

tax deductions. Parker earned $1,745.00 during the most recent biweekly pay period. Parker needs to decide between contributing 3.0% and $30 to his 401(k) plan. If Parker chooses the method that results in the highest take-home amount, how much will be withheld for Federal income tax (based on the following table)? Note: Use the wage-bracket table. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 64 $ 133 $ 97 $ 167 $ 133 $ 227 1,7 1,7 00 20 $ $ $ 66 $ 135 $ 100 $ 171 $ 135 $ 232 1,7 1,7 20 40 $ $ $ 68 $ 138 $ 102 $ 176 $ 138 $ 236 1,7 1,7 40 60 $ $ $ 70 $ 140 $ 104 $ 180 $ 140 $ 241 1,7 1,7 60 80 $ $ $ 72 $ 142 $ 107 $ 185 $ 142 $ 245 1,7 1,8 80 00 $ $ $ 74 $ 145 $ 109 $ 189 $ 145 $ 249 1,8 1,8 00 20 $ $ $ 76 $ 147 $ 112 $ 193 $ 147 $ 254 1,8 1,8 20 40

$ 1,8 40 $ 1,8 60 $ 1,8 80 $ 1,9 00 $ 1,9 20 $ 1,9 40 $ 1,9 60 $ 1,9 80 $ 2,0 00

$ 1,8 60 $ 1,8 80 $ 1,9 00 $ 1,9 20 $ 1,9 40 $ 1,9 60 $ 1,9 80 $ 2,0 00 $ 2,0 20

A) B) C) D)

$135.00 $133.00 $227.00 $127.00

$ 78

$ 150

$ 114

$ 198

$ 150

$ 258

$ 80

$ 152

$ 116

$ 202

$ 152

$ 263

$ 82

$ 154

$ 119

$ 207

$ 154

$ 267

$ 84

$ 157

$ 121

$ 211

$ 157

$ 271

$ 87

$ 159

$ 124

$ 215

$ 159

$ 276

$ 89

$ 162

$ 126

$ 220

$ 162

$ 280

$ 92

$ 164

$ 128

$ 224

$ 164

$ 285

$ 94

$ 166

$ 131

$ 229

$ 166

$ 289

$ 96

$ 169

$ 133

$ 233

$ 169

$ 293

31) Parker is single, has indicated checkbox withholding on the 2023 Form W-4, and has no pre-

tax deductions. Parker earned $1,845.00 during the most recent biweekly pay period. Parker needs to decide between contributing 3% and $30 to his 401(k) plan. If Parker chooses the method that results in the highest take-home amount, how much will be withheld for Federal income tax (based on the following table)? Note: Use the wage-bracket table. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 64 $ 133 $ 97 $ 167 $ 133 $ 227 1,7 1,7 00 20 $ $ $ 66 $ 135 $ 100 $ 171 $ 135 $ 232 1,7 1,7 20 40 $ $ $ 68 $ 138 $ 102 $ 176 $ 138 $ 236 1,7 1,7 40 60 $ $ $ 70 $ 140 $ 104 $ 180 $ 140 $ 241 1,7 1,7 60 80 $ $ $ 72 $ 142 $ 107 $ 185 $ 142 $ 245 1,7 1,8 80 00 $ $ $ 74 $ 145 $ 109 $ 189 $ 145 $ 249 1,8 1,8 00 20 $ $ $ 76 $ 147 $ 112 $ 193 $ 147 $ 254 1,8 1,8 20 40

$ 1,8 40 $ 1,8 60 $ 1,8 80 $ 1,9 00 $ 1,9 20 $ 1,9 40 $ 1,9 60 $ 1,9 80 $ 2,0 00

$ 1,8 60 $ 1,8 80 $ 1,9 00 $ 1,9 20 $ 1,9 40 $ 1,9 60 $ 1,9 80 $ 2,0 00 $ 2,0 20

A) B) C) D)

$157.00 $145.00 $249.00 $149.00

$ 78

$ 150

$ 114

$ 198

$ 150

$ 258

$ 80

$ 152

$ 116

$ 202

$ 152

$ 263

$ 82

$ 154

$ 119

$ 207

$ 154

$ 267

$ 84

$ 157

$ 121

$ 211

$ 157

$ 271

$ 87

$ 159

$ 124

$ 215

$ 159

$ 276

$ 89

$ 162

$ 126

$ 220

$ 162

$ 280

$ 92

$ 164

$ 128

$ 224

$ 164

$ 285

$ 94

$ 166

$ 131

$ 229

$ 166

$ 289

$ 96

$ 169

$ 133

$ 233

$ 169

$ 293

32) Andie earned $675.00 during the most recent weekly pay period. Andie is married filing

separately, has indicated Step 2 checkbox withholding on the 2023 Form W-4, and needs to decide between contributing 2.5% and $25 to the 401(k) plan. If Andie chooses the method that results in the lowest taxable income, how much will be withheld for Federal income tax (based on the following table)? Note: Use the wage-bracket table. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later WEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Jointly Filing Separately Wage Amount (line 1h) is At But Standard Form W-4, Standard Form W-4, Standard Form W-4, least less withholdi Step 2, withholdi Step 2, withholdi Step 2, than ng Checkbox ng Checkbox ng Checkbox withholdi withholdi withholdi ng ng ng The Tentative Withholding Amount is: $ $ $ 10 $ 39 $ 23 $ 49 $ 39 $ 64 62 63 5 5 $ $ $ 11 $ 41 $ 24 $ 50 $ 41 $ 66 63 64 5 5 $ $ $ 12 $ 42 $ 25 $ 51 $ 42 $ 69 64 65 5 5 $ $ $ 13 $ 43 $ 26 $ 52 $ 43 $ 71 65 66 5 5 $ $ $ 14 $ 44 $ 27 $ 53 $ 44 $ 73 66 67 5 5 $ $ $ 15 $ 45 $ 28 $ 55 $ 45 $ 75 67 68 5 5 $ $ $ 16 $ 47 $ 29 $ 56 $ 47 $ 77 68 69 5 5

$ 69 5 $ 70 5 $ 71 5 $ 72 5 $ 73 5 $ 74 5 $ 75 5

$ 70 5 $ 71 5 $ 72 5 $ 73 5 $ 74 5 $ 75 5 $ 76 5

A) B) C) D)

$41.00 $73.00 $69.00 $42.00

$ 17

$ 48

$ 30

$ 57

$ 48

$ 80

$ 18

$ 49

$ 31

$ 58

$ 49

$ 82

$ 19

$ 50

$ 32

$ 59

$ 50

$ 84

$ 20

$ 51

$ 34

$ 61

$ 51

$ 86

$ 21

$ 53

$ 35

$ 62

$ 53

$ 88

$ 22

$ 54

$ 36

$ 63

$ 54

$ 91

$ 23

$ 55

$ 37

$ 64

$ 55

$ 93

33) Andie earned $700.00 during the most recent weekly pay period. Andie is married filing

$ 69 5 $ 70 5 $ 71 5 $ 72 5 $ 73 5 $ 74 5 $ 75 5

$ 70 5 $ 71 5 $ 72 5 $ 73 5 $ 74 5 $ 75 5 $ 76 5

A) B) C) D)

$44.00 $77.00 $75.00 $45.00

$ 17

$ 48

$ 30

$ 57

$ 48

$ 80

$ 18

$ 49

$ 31

$ 58

$ 49

$ 82

$ 19

$ 50

$ 32

$ 59

$ 50

$ 84

$ 20

$ 51

$ 34

$ 61

$ 51

$ 86

$ 21

$ 53

$ 35

$ 62

$ 53

$ 88

$ 22

$ 54

$ 36

$ 63

$ 54

$ 91

$ 23

$ 55

$ 37

$ 64

$ 55

$ 93

34) Kris earned $1,885.00 during the most recent weekly pay period. Kris is married filing

jointly with 2 dependents under the age of 17, per the 2023 Form W-4, with no pre-tax deductions and no additional withholding. Form W-4, Step 2 box has been checked. Using the percentage method, compute Kris's federal income tax for the period. Note: Use the percentage-bracket table. Do not round intermediate calculations. Round final answer to 2 decimal places. Married Filing Jointly 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later WEEKLY Payroll Period Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A $ 0 $ 266 $ 478 $ 1,126 $ 2,100 $ 3,768 $ 4,713 $ 6,937

B $ 266 $ 478 $ 1,126 $ 2,100 $ 3,768 $ 4,713 $ 6,937

C $ 0.00 $ 0.00 $ 21.20 $ 98.96 $ 313.24 $ 713.56 $ 1015.96 $ 1,794.36

D 0% 10% 12% 22% 24% 32% 35% 37%

E $ 0 $ 266 $ 478 $ 1,126 $ 2,100 $ 3,768 $ 4,713 $ 6,937

Single or Married Filing Separately 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later WEEKLY Payroll Period Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A $ 0 $ 133 $ 239 $ 563

B $ 133 $ 239 $ 563 $ 1,050

C $ 0.00 $ 0.00 $ 10.60 $ 49.48

D 0% 10% 12% 22%

E $ 0 $ 133 $ 239 $ 563

$ 1,050 $ 1,884 $ 2,357 $ 5,692 A) B) C) D)

$ 1,884 $ 2,357 $ 5,692

$ 156.62 $ 356.78 $ 508.14 $ 1,675.39

24% 32% 35% 37%

$ 1,050 $ 1,884 $ 2,357 $ 5,692

$265.94 $189.02 $249.02 $0

35) Kris earned $1,600.00 during the most recent weekly pay period. Kris is married filing

B $ 266 $ 478 $ 1,126 $ 2,100 $ 3,768 $ 4,713 $ 6,937

C $ 0.00 $ 0.00 $ 21.20 $ 98.96 $ 313.24 $ 713.56 $ 1015.96 $ 1,794.36

D 0% 10% 12% 22% 24% 32% 35% 37%

E $ 0 $ 266 $ 478 $ 1,126 $ 2,100 $ 3,768 $ 4,713 $ 6,937

B $ 133 $ 239 $ 563 $ 1,050

C $ 0.00 $ 0.00 $ 10.60 $ 49.48

D 0% 10% 12% 22%

E $ 0 $ 133 $ 239 $ 563

$ 1,050 $ 1,884 $ 2,357 $ 5,692 A) B) C) D)

$ 1,884 $ 2,357 $ 5,692

$ 156.62 $ 356.78 $ 508.14 $ 1,675.39

24% 32% 35% 37%

$ 1,050 $ 1,884 $ 2,357 $ 5,692

$203.24 $126.32 $186.32 $0

36) Avery is an employee who is Married filing Joint with 1 Other dependent claimed on the

2023 Form W-4. Avery did not check Step 2 checkbox withholding. During the most recent biweekly pay period, Avery earned $9,540.00. Using the percentage method, compute Avery’s federal income tax. Note: Use the percentage-bracket table. Do not round intermediate calculations. Round your final answer to 2 decimal places. Married Filing Jointly 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later BIWEEKLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A $ 0 $ 1,065 $ 1,912 $ 4,506 $ 8,402 $ 15,073 $ 18,854 $ 27,748

B $ 1,065 $ 1,912 $ 4,506 $ 8,402 $ 15,073 $ 18,854 $ 27,748

C $ 0.00 $ 0.00 $ 84.70 $ 395.98 $ 1,253.10 $ 2,854.14 $ 4,064.06 $ 7,176.96

D 0% 10% 12% 22% 24% 32% 35% 37%

E $ 0 $ 1,065 $ 1,912 $ 4,506 $ 8,402 $ 15,073 $ 18,854 $ 27,748

Single or Married Filing Separately 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later BIWEEKLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A $ 0 $ 533 $ 956 $ 2,253

B $ 533 $ 956 $ 2,253 $ 4,201

C $ 0.00 $ 0.00 $ 42.30 $ 197.94

D 0% 10% 12% 22%

E $ 0 $ 533 $ 956 $ 2,253

$ 4,201 $ 7,537 $ 9,427 $ 22,768 A) B) C) D)

$ 7,537 $ 9,427 $ 22,768

$ 626.50 $ 1,427.14 $ 2,031.94 $ 6,701.29

24% 32% 35% 37%

$ 4,201 $ 7,537 $ 9,427 $ 22,768

$1,505.39 $1,526.22 $1,506.99 $1,511.60

37) Avery is an employee who is Married filing Joint with 1 Other dependent claimed on the

2023 Form W-4. Avery did not check Step 2 checkbox withholding. During the most recent biweekly pay period, Avery earned $9,450.00. Using the percentage method, compute Avery’s federal income tax. Note: Use the percentage-bracket table. Do not round intermediate calculations. Round your final answer to 2 decimal places. Married Filing Jointly 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later BIWEEKLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A $ 0 $ 1,065 $ 1,912 $ 4,506 $ 8,402 $ 15,073 $ 18,854 $ 27,748

B $ 1,065 $ 1,912 $ 4,506 $ 8,402 $ 15,073 $ 18,854 $ 27,748

C $ 0.00 $ 0.00 $ 84.70 $ 395.98 $ 1,253.10 $ 2,854.14 $ 4,064.06 $ 7,176.96

D 0% 10% 12% 22% 24% 32% 35% 37%

E $ 0 $ 1,065 $ 1,912 $ 4,506 $ 8,402 $ 15,073 $ 18,854 $ 27,748

B $ 533 $ 956 $ 2,253 $ 4,201

C $ 0.00 $ 0.00 $ 42.30 $ 197.94

D 0% 10% 12% 22%

E $ 0 $ 533 $ 956 $ 2,253

$ 4,201 $ 7,537 $ 9,427 $ 22,768 A) B) C) D)

$ 7,537 $ 9,427 $ 22,768

$ 626.50 $ 1,427.14 $ 2,031.94 $ 6,701.29

24% 32% 35% 37%

$ 4,201 $ 7,537 $ 9,427 $ 22,768

$1,483.79 $1,504.62 $1,485.39 $1,490.00

38) Brooklyn is a part-time employee who earned $270.00 during the most recent pay period.

Brooklyn is married filing jointly with two dependents under 17 years of age per the 2023 Form W-4. Prior to this pay period, Brooklyn’s year-to-date pay is $5,400.00 and has no pretax deductions. How much should be withheld from Brooklyn's gross pay for Social Security tax? A) $3.92 B) $16.20 C) $16.74 D) $20.66

39) Brooklyn is a part-time employee who earned $265.00 during the most recent pay period.

Brooklyn is married filing jointly with two dependents under 17 years of age per the 2023 Form W-4. Prior to this pay period, Brooklyn’s year-to-date pay is $5,300.00 and has no pretax deductions. How much should be withheld from Brooklyn's gross pay for Social Security tax? A) $3.84 B) $15.90 C) $16.43 D) $20.27

40) Bellamy is an adjunct faculty at a local college, where she earned $905.00 during the most

recent semimonthly pay period. Her prior year-to-date pay is $13,575. Bellamy is single and has indicated a dependent under 17 on her 2023 Form W-2. She has no pre-tax deductions. What is Whitney’s Social Security tax for the pay period? A) $53.38 B) $54.30 C) $54.48 D) $56.11

41) Bellamy is an adjunct faculty at a local college, where she earned $895.00 during the most

recent semimonthly pay period. Her prior year-to-date pay is $13,425. Bellamy is single and has indicated a dependent under 17 on her 2023 Form W-2. She has no pre-tax deductions. What is Whitney’s Social Security tax for the pay period? A) $52.79 B) $53.70 C) $53.88 D) $55.49

42) Tatum is a security guard for a local facility. He earned $1,450.50 during the most recent

biweekly pay period and has earned $23,208.00 year-to-date. He is married filing jointly and claims two dependents under the age of 17 on his 2023 Form W-4. He has no pre-tax deductions. What is Tatum’s Medicare tax liability for the pay period? A) $110.96 B) $21.03 C) $18.64 D) $21.76

43) Tatum is a security guard for a local facility. He earned $1,355.50 during the most recent

biweekly pay period and has earned $21,688.00 year-to-date. He is married filing jointly and claims two dependents under the age of 17 on his 2023 Form W-4. He has no pre-tax deductions. What is Tatum’s Medicare tax liability for the pay period? A) $103.70 B) $19.65 C) $17.42 D) $20.33

44) Gabrien is a full-time exempt employee at a local electricity co-operative. He earns an annual

salary of $55,370 and is paid biweekly. He contributes 3% of his earnings to his 401(k) account and has no other pre-tax deductions. What is his Social Security tax deduction for each pay period? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. A) $127.78 B) $128.08 C) $132.04 D) $132.78

45) Gabrien is a full-time exempt employee at a local electricity co-operative. He earns an annual

salary of $55,130 and is paid biweekly. He contributes 3% of his earnings to his 401(k) account and has no other pre-tax deductions. What is his Social Security tax deduction for each pay period? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. A) $127.22 B) $127.52 C) $131.46 D) $132.21

46) Denver is a salaried exempt employee who earns an annual salary of $61,225, which is paid

semimonthly. She is married filing separately and claims two dependents under 17 per her 2023 Form W-4. What is her total FICA tax liability per pay period? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. A) $195.15 B) $158.16 C) $182.30 D) $147.74

47) Denver is a salaried exempt employee who earns an annual salary of $60,725, which is paid

48) Emery is a single, full-time exempt employee who earns $238,200 annually, paid monthly.

Her year-to-date pay as of November 30 is $218,350.00. How much will be withheld from Emery for FICA taxes for the December 31 pay date? Note: Social Security maximum wage is $160,200. Do not round intermediate calculations. Round your final answer to 2 decimal places. A) $287.83 B) $178.65 C) $466.48 D) $312.90

49) Emery is a single, full-time exempt employee who earns $232,500 annually, paid monthly.

Her year-to-date pay as of November 30 is $213,125. How much will be withheld from Emery for FICA taxes for the December 31 pay date? Note: Social Security maximum wage is $160,200. Do not round intermediate calculations. Round your final answer to 2 decimal places. A) $280.94 B) $174.38 C) $455.31 D) $348.76

50) Micah is a full-time exempt engineer who earns $176,800 annually and is paid semimonthly.

He is single and has no dependents. As of November 15, his year-to-date gross pay was $154,700.00. How much will be withheld for FICA taxes for the November 30 pay date? Note: Social Security maximum wage is $160,200. Do not round intermediate calculations. Round your final answer to 2 decimal places. A) B) C) D)

$447.82 $106.82 $341.00 $563.55

51) Micah is a full-time exempt engineer who earns $175,000 annually and is paid semimonthly.

He is single and has no dependents. As of November 15, his year-to-date gross pay was $153,125. How much will be withheld for FICA taxes for the November 30 pay date? Note: Social Security maximum wage is $160,200. Do not round intermediate calculations. Round your final answer to 2 decimal places. A) B) C) D)

$544.38 $105.73 $438.65 $557.81

52) Mackenzie is a full-time employee in Austin, Texas, who earns $4,570 per month and is paid

semimonthly. She is married filing jointly with one dependent under 17 and has indicated Step 2 checkbox withholding. She has a qualified health insurance deduction of $50 per pay period and contributes 3% to her 401(k), both of which are pre-tax deductions. Her additional withholding amount for step 2 is $150.75. What is her semimonthly net pay? Note: Use the wage-bracket table. Do not round intermediate calculations. Round final answer to 2 decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later SEMIMONTHLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W-4, Standard Form W-4, least less withhold 4, Step withhold Step 2, withholdi Step 2, than ing 2, ing Checkbox ng Checkbox Checkbox withholdi withholdi withhold ng ng ing The Tentative Withholding Amount is: $ $ $ 82 $ 159 $ 120 $ $ $ 1,9 1,9 208 159 273 65 85 $ $ $ 84 $ 161 $ 122 $ $ $ 1,9 2,0 212 161 278 85 05 $ $ $ 86 $ 163 $ 125 $ $ $ 2,0 2,0 217 163 282 05 25 $ $ $ 88 $ 166 $ 127 $ $ $ 2,0 2,0 221 166 286 25 45 $ $ $ 90 $ 168 $ 130 $ $ $ 2,0 2,0 226 168 291 45 65 $ $ $ 92 $ 171 $ 132 $ $ $ 2,0 2,0 230 171 295 65 85 $ $ $ 95 $ 173 $ 134 $ $ $ 2,0 2,1 234 173 300 85 05

$ 2,1 05 $ 2,1 25 $ 2,1 45 $ 2,1 65 $ 2,1 85 $ 2,2 05

$ 2,1 25 $ 2,1 45 $ 2,1 65 $ 2,1 85 $ 2,2 05 $ 2,2 25

A) B) C) D)

$1,812.97 $1,730.27 $1,661.72 $1,667.06

$ 97

$ 175

$ 137

$ 239

$ 175

$ 304

$ 99

$ 178

$ 139

$ 243

$ 178

$ 308

$ 102

$ 180

$ 142

$ 248

$ 180

$ 313

$ 104

$ 183

$ 144

$ 252

$ 183

$ 317

$ 107

$ 185

$ 146

$ 256

$ 185

$ 322

$ 109

$ 187

$ 149

$ 261

$ 187

$ 326

53) Mackenzie is a full-time employee in Austin, Texas, who earns $4,250 per month and is paid

$ 2,1 05 $ 2,1 25 $ 2,1 45 $ 2,1 65 $ 2,1 85 $ 2,2 05

$ 2,1 25 $ 2,1 45 $ 2,1 65 $ 2,1 85 $ 2,2 05 $ 2,2 25

A) B) C) D)

$1,617.26 $1,595.51 $1,538.76 $1,690.01

$ 97

$ 175

$ 137

$ 239

$ 175

$ 304

$ 99

$ 178

$ 139

$ 243

$ 178

$ 308

$ 102

$ 180

$ 142

$ 248

$ 180

$ 313

$ 104

$ 183

$ 144

$ 252

$ 183

$ 317

$ 107

$ 185

$ 146

$ 256

$ 185

$ 322

$ 109

$ 187

$ 149

$ 261

$ 187

$ 326

54) Drew is a part-time nonexempt employee in Tallahassee, Florida, who earns $17.90 per hour.

During the last biweekly pay period he worked 43 hours, 3 of which were considered overtime. He is single with no dependents and has not indicated checkbox withholding in step 2. What is his net pay? Note: Use the wage-bracket table. Do not round intermediate calculations. Round your final answer to 2 decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 0 $ 19 $ 0 $ 33 $ 19 $ 51 7 7 2 3 0 5 $ $ $ 0 $ 21 $ 0 $ 35 $ 21 $ 53 7 7 3 5 5 0 $ $ $ 0 $ 22 $ 0 $ 37 $ 22 $ 55 7 7 5 6 0 5 $ $ $ 0 $ 24 $ 0 $ 39 $ 24 $ 57 7 7 6 8 5 0 $ $ $ 0 $ 25 $ 0 $ 40 $ 25 $ 58 7 7 8 9 0 5

$ 7 9 5 $ 8 1 0 $ 8 2 5 $ 8 4 0 $ 8 5 5 $ 8 7 0 $ 8 8 5 $ 9 0 0 $ 9 1 5

$ 8 1 0 $ 8 2 5 $ 8 4 0 $ 8 5 5 $ 8 7 0 $ 8 8 5 $ 9 0 0 $ 9 1 5 $ 9 3 0

A) B) C) D)

$730.61 $680.61 $708.61 $701.61

$ 0

$ 27

$ 0

$ 42

$ 27

$ 60

$ 0

$ 28

$ 2

$ 44

$ 28

$ 62

$ 0

$ 30

$ 3

$ 46

$ 30

$ 64

$ 0

$ 31

$ 5

$ 48

$ 31

$ 66

$ 0

$ 33

$ 6

$ 49

$ 33

$ 67

$ 0

$ 34

$ 8

$ 51

$ 34

$ 69

$ 0

$ 36

$ 9

$ 53

$ 36

$ 71

$ 0

$ 37

$ 11

$ 55

$ 37

$ 73

$ 0

$ 39

$ 12

$ 57

$ 39

$ 75

55) Drew is a part-time nonexempt employee in Tallahassee, Florida, who earns $17.50 per hour.

$ 7 9 5 $ 8 1 0 $ 8 2 5 $ 8 4 0 $ 8 5 5 $ 8 7 0 $ 8 8 5 $ 9 0 0 $ 9 1 5

$ 8 1 0 $ 8 2 5 $ 8 4 0 $ 8 5 5 $ 8 7 0 $ 8 8 5 $ 9 0 0 $ 9 1 5 $ 9 3 0

A) B) C) D)

$717.18 $667.18 $695.18 $688.18

$ 0

$ 27

$ 0

$ 42

$ 27

$ 60

$ 0

$ 28

$ 2

$ 44

$ 28

$ 62

$ 0

$ 30

$ 3

$ 46

$ 30

$ 64

$ 0

$ 31

$ 5

$ 48

$ 31

$ 66

$ 0

$ 33

$ 6

$ 49

$ 33

$ 67

$ 0

$ 34

$ 8

$ 51

$ 34

$ 69

$ 0

$ 36

$ 9

$ 53

$ 36

$ 71

$ 0

$ 37

$ 11

$ 55

$ 37

$ 73

$ 0

$ 39

$ 12

$ 57

$ 39

$ 75

56) An employee’s disposable income is: A) B) C) D)

an employee's net pay minus living expenses. an employee's taxable income minus all post-tax deductions. an employee's gross pay minus all pre-tax deductions. an employee's pay minus legally required deductions.

57) Blake earns $2,000 per period. She contributes 6% per pay period to a 401(k) plan, $30 per

pay period to a charitable contribution, $90 per pay period to union dues, and $150 per pay period to a Section 125 qualified insurance plan offered by her employer. What is the amount of her post-tax deductions? A) $390 B) $270 C) $150 D) $120

58) Garnishments may include deductions from employee wages on a post-tax basis for items

such as: A) Charitable contributions. B) Federal tax liens. C) Retirement plan contributions. D) Union dues.

59) Why might an employee elect to have additional federal income tax withheld? A) The employee has one job. B) The employee's spouse is unemployed. C) The employee wishes to reduce income tax liability. D) The employee wants to satisfy prior years' tax obligations.

60) Hayden is a full-time exempt employee living in St. George, Utah, who earns $29,550

annually and is paid biweekly. She is married filing jointly and has indicated checkbox withholding on her 2023 Form W-4. She has additional federal tax of $75.00. What is the total of her federal and state income tax deductions for the most recent pay period? Note: Use the wage bracket tables. Utah state income tax rate is 4.85%. Do not round intermediate calculations. Round your final answer to 2 decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form W-4, least less withhold 4, Step withhold 4, Step withhold Step 2, than ing 2, ing 2, ing Checkbox Checkbox Checkbox withholdi withhold withhold ng ing ing The Tentative Withholding Amount is: $ $ $ 0 $ 44 $ 17 $ 62 $ 44 $ 960 975 80 $ $ $ 0 $ 46 $ 18 $ 64 $ 46 $ 975 990 82 $ $ $ 0 $ 47 $ 20 $ 66 $ 47 $ 990 1,0 84 05 $ $ $ 0 $ 49 $ 21 $ 67 $ 49 $ 1,0 1,0 85 05 20 $ $ $ 0 $ 51 $ 23 $ 69 $ 51 $ 1,0 1,0 87 20 35 $ $ $ 0 $ 53 $ 24 $ 71 $ 53 $ 1,0 1,0 89 35 50 $ $ $ 0 $ 55 $ 26 $ 73 $ 55 $ 1,0 1,0 91 50 65 $ $ $ 1 $ 56 $ 27 $ 75 $ 56 $ 1,0 1,0 93 65 80

$ 1,0 80 $ 1,0 95 $ 1,1 10 $ 1,1 25 $ 1,1 40 $ 1,1 60 $ 1,1 80

$ 1,0 95 $ 1,1 10 $ 1,1 25 $ 1,1 40 $ 1,1 60 $ 1,1 80 $ 1,2 00

A) B) C) D)

$226.12 $194.12 $139.00 $181.42

$ 2

$ 58

$ 29

$ 76

$ 58

$ 94

$ 4

$ 60

$ 30

$ 78

$ 60

$ 96

$ 5

$ 62

$ 32

$ 80

$ 62

$ 98

$ 7

$ 64

$ 33

$ 82

$ 64

$ 100

$ 8

$ 66

$ 35

$ 84

$ 66

$ 104

$ 10

$ 68

$ 37

$ 86

$ 68

$ 109

$ 12

$ 70

$ 39

$ 89

$ 70

$ 113

61) Hayden is a full-time exempt employee living in St. George, Utah, who earns $28,500

annually and is paid biweekly. She is married filing jointly and has indicated checkbox withholding on her 2023 Form W-4. She has additional federal tax of $75.00. What is the total of her federal and state income tax deductions for the most recent pay period? Note: Use the wage bracket tables. Utah state income tax rate is 4.85%. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form W-4, least less withhold 4, Step withhold 4, Step withhold Step 2, than ing 2, ing 2, ing Checkbox Checkbox Checkbox withholdi withhold withhold ng ing ing The Tentative Withholding Amount is: $ $ $ 0 $ 44 $ 17 $ 62 $ 44 $ 960 975 80 $ $ $ 0 $ 46 $ 18 $ 64 $ 46 $ 975 990 82 $ $ $ 0 $ 47 $ 20 $ 66 $ 47 $ 990 1,0 84 05 $ $ $ 0 $ 49 $ 21 $ 67 $ 49 $ 1,0 1,0 85 05 20 $ $ $ 0 $ 51 $ 23 $ 69 $ 51 $ 1,0 1,0 87 20 35 $ $ $ 0 $ 53 $ 24 $ 71 $ 53 $ 1,0 1,0 89 35 50 $ $ $ 0 $ 55 $ 26 $ 73 $ 55 $ 1,0 1,0 91 50 65 $ $ $ 1 $ 56 $ 27 $ 75 $ 56 $ 1,0 1,0 93 65 80

$ 1,0 80 $ 1,0 95 $ 1,1 10 $ 1,1 25 $ 1,1 40 $ 1,1 60 $ 1,1 80

$ 1,0 95 $ 1,1 10 $ 1,1 25 $ 1,1 40 $ 1,1 60 $ 1,1 80 $ 1,2 00

A) B) C) D)

$218.16 $188.16 $135.00 $175.46

$ 2

$ 58

$ 29

$ 76

$ 58

$ 94

$ 4

$ 60

$ 30

$ 78

$ 60

$ 96

$ 5

$ 62

$ 32

$ 80

$ 62

$ 98

$ 7

$ 64

$ 33

$ 82

$ 64

$ 100

$ 8

$ 66

$ 35

$ 84

$ 66

$ 104

$ 10

$ 68

$ 37

$ 86

$ 68

$ 109

$ 12

$ 70

$ 39

$ 89

$ 70

$ 113

62) Alva is a full-time nonexempt salaried employee who earns $920.00 per biweekly pay

period. She is single with no dependents and has not indicated checkbox withholding on her 2023 Form W-4. She both lives and works in Bowling Green, Kentucky. Assuming she had no overtime, what is the total of her federal and state taxes for a pay period? Note: Use the wage-bracket tables. Kentucky state income rate is 4.50%. Do not round intermediate calculations. Round your final answer to 2 decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 0 $ $ 9 $ 53 $ 36 $ 71 885 900 36 $ $ $ 0 $ $ 11 $ 55 $ 37 $ 73 900 915 37 $ $ $ 0 $ $ 12 $ 57 $ 39 $ 75 915 930 39 $ $ $ 0 $ $ 14 $ 58 $ 40 $ 76 930 945 40 $ $ $ 0 $ $ 15 $ 60 $ 42 $ 78 945 960 42 $ $ $ 0 $ $ 17 $ 62 $ 44 $ 80 960 975 44 $ $ $ 0 $ $ 18 $ 64 $ 46 $ 82 975 990 46 $ $ $ 0 $ $ 20 $ 66 $ 47 $ 84 990 1,0 47 05 $ $ $ 0 $ $ 21 $ 67 $ 49 $ 85 1,0 1,0 49 05 20

$ 1,0 20 $ 1,0 35 $ 1,0 50 $ 1,0 65 $ 1,0 80 $ 1,0 95

$ 1,0 35 $ 1,0 50 $ 1,0 65 $ 1,0 80 $ 1,0 95 $ 1,1 10

A) B) C) D)

$9.20 $80.40 $38.40 $60.40

$ 0

$ 51

$ 23

$ 69

$ 51

$ 87

$ 0

$ 53

$ 24

$ 71

$ 53

$ 89

$ 0

$ 55

$ 26

$ 73

$ 55

$ 91

$ 1

$ 56

$ 27

$ 75

$ 56

$ 93

$ 2

$ 58

$ 29

$ 76

$ 58

$ 94

$ 4

$ 60

$ 30

$ 78

$ 60

$ 96

63) Alva is a full-time nonexempt salaried employee who earns $1,000 per biweekly pay period.

She is single with no dependents and has not indicated checkbox withholding on her 2023 Form W-4. She both lives and works in Bowling Green, Kentucky. Assuming she had no overtime, what is the total of her federal and state taxes for a pay period? Note: Use the wage-bracket tables. Kentucky state income rate is 4.50%. Round your final answer to 2 decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 0 $ $ 9 $ 53 $ 36 $ 71 885 900 36 $ $ $ 0 $ $ 11 $ 55 $ 37 $ 73 900 915 37 $ $ $ 0 $ $ 12 $ 57 $ 39 $ 75 915 930 39 $ $ $ 0 $ $ 14 $ 58 $ 40 $ 76 930 945 40 $ $ $ 0 $ $ 15 $ 60 $ 42 $ 78 945 960 42 $ $ $ 0 $ $ 17 $ 62 $ 44 $ 80 960 975 44 $ $ $ 0 $ $ 18 $ 64 $ 46 $ 82 975 990 46 $ $ $ 0 $ $ 20 $ 66 $ 47 $ 84 990 1,0 47 05 $ $ $ 0 $ $ 21 $ 67 $ 49 $ 85 1,0 1,0 49 05 20

$ 1,0 20 $ 1,0 35 $ 1,0 50 $ 1,0 65 $ 1,0 80 $ 1,0 95

$ 1,0 35 $ 1,0 50 $ 1,0 65 $ 1,0 80 $ 1,0 95 $ 1,1 10

A) B) C) D)

$10.00 $92.00 $50.00 $72.00

$ 0

$ 51

$ 23

$ 69

$ 51

$ 87

$ 0

$ 53

$ 24

$ 71

$ 53

$ 89

$ 0

$ 55

$ 26

$ 73

$ 55

$ 91

$ 1

$ 56

$ 27

$ 75

$ 56

$ 93

$ 2

$ 58

$ 29

$ 76

$ 58

$ 94

$ 4

$ 60

$ 30

$ 78

$ 60

$ 96

64) Kerry is a full-time exempt employee in Bismarck, North Dakota. He earns an annual salary

of $35,900 and is paid semimonthly. He is married filing separately and has indicated checkbox withholding on his 2023 Form W-4, with an additional withholding of $45.00. His state income tax is 1.10%, and Bismarck local income tax is 3.0%. What is the total of FICA, federal, state, and local tax deductions per pay period, assuming no pre-tax deductions? Note: Use the wage-bracket table to determine federal taxes. Do not round intermediate calculations. Round your final answer to 2 decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later SEMIMONTHLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ $ $ 63 $ $ $ 1,4 1,5 34 101 121 101 168 85 05 $ $ $ $ $ 65 $ $ $ 1,5 1,5 36 103 123 103 172 05 25 $ $ $ $ $ 67 $ $ $ 1,5 1,5 38 106 126 106 176 25 45 $ $ $ $ $ 70 $ $ $ 1,5 1,5 40 108 128 108 181 45 65 $ $ $ $ $ 72 $ $ $ 1,5 1,5 42 111 130 111 185 65 85 $ $ $ $ $ 74 $ $ $ 1,5 1,6 44 113 133 113 190 85 05 $ $ $ $ $ 77 $ $ $ 1,6 1,6 46 115 135 115 194 05 25

$ 1,6 25 $ 1,6 45 $ 1,6 65

$ 1,6 45 $ 1,6 65 $ 1,6 85

A) B) C) D)

$348.26 $325.76 $388.76 $301.26

$ 48

$ 118

$ 79

$ 138

$ 118

$ 198

$ 50

$ 120

$ 82

$ 140

$ 120

$ 203

$ 52

$ 123

$ 84

$ 142

$ 123

$ 207

65) Kerry is a full-time exempt employee in Bismarck, North Dakota. He earns an annual salary

of $39,750 and is paid semimonthly. He is married filing separately and has indicated checkbox withholding on his 2023 Form W-4, with an additional withholding of $45.00. His state income tax is 1.10%, and Bismarck local income tax is 3.0%. What is the total of FICA, federal, state, and local tax deductions per pay period, assuming no pre-tax deductions? Note: Use the wage-bracket table to determine federal taxes. Do not round intermediate calculations. Round your final answer to 2 decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later SEMIMONTHLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ $ $ 63 $ $ $ 1,4 1,5 34 101 121 101 168 85 05 $ $ $ $ $ 65 $ $ $ 1,5 1,5 36 103 123 103 172 05 25 $ $ $ $ $ 67 $ $ $ 1,5 1,5 38 106 126 106 176 25 45 $ $ $ $ $ 70 $ $ $ 1,5 1,5 40 108 128 108 181 45 65 $ $ $ $ $ 72 $ $ $ 1,5 1,5 42 111 130 111 185 65 85 $ $ $ $ $ 74 $ $ $ 1,5 1,6 44 113 133 113 190 85 05 $ $ $ $ $ 77 $ $ $ 1,6 1,6 46 115 135 115 194 05 25

$ 1,6 25 $ 1,6 45 $ 1,6 65

$ 1,6 45 $ 1,6 65 $ 1,6 85

A) B) C) D)

$379.61 $402.11 $442.61 $355.11

$ 48

$ 118

$ 79

$ 138

$ 118

$ 198

$ 50

$ 120

$ 82

$ 140

$ 120

$ 203

$ 52

$ 123

$ 84

$ 142

$ 123

$ 207

66) Billie is a full-time exempt employee in Providence, Rhode Island, and is paid biweekly. She

earns $44,700 annually and indicated married filing jointly with checkbox withholding on her 2023 Form W-4. She has no additional federal tax withholding. Her state income tax rate is 3.75%. What is the total amount of her FICA, federal, state, and FICA taxes per pay period, assuming pre-tax deductions of 4% for her 401(k) and $150.00 for health insurance? Note: Use the wage-bracket table to determine the federal tax deduction. Do not round intermediate calculations. Round your final answer to 2 decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 38 $ $ 66 $ $ $ 1,4 1,4 102 120 102 170 40 60 $ $ $ 40 $ $ 68 $ $ $ 1,4 1,4 104 122 104 175 60 80 $ $ $ 42 $ $ 71 $ $ $ 1,4 1,5 106 125 106 179 80 00 $ $ $ 44 $ $ 73 $ $ $ 1,5 1,5 109 127 109 183 00 20 $ $ $ 46 $ $ 76 $ $ $ 1,5 1,5 111 130 111 188 20 40 $ $ $ 48 $ $ 78 $ $ $ 1,5 1,5 114 132 114 192 40 60 $ $ $ 50 $ $ 80 $ $ $ 1,5 1,5 116 136 116 197 60 80

$ 1,5 80 $ 1,6 00 $ 1,6 20 $ 1,6 40 $ 1,6 60 $ 1,6 80

$ 1,6 00 $ 1,6 20 $ 1,6 40 $ 1,6 60 $ 1,6 80 $ 1,7 00

A) B) C) D)

$230.31 $285.31 $313.31 $324.31

$ 52

$ 118

$ 83

$ 141

$ 118

$ 201

$ 54

$ 121

$ 85

$ 145

$ 121

$ 205

$ 56

$ 123

$ 88

$ 149

$ 123

$ 210

$ 58

$ 126

$ 90

$ 154

$ 126

$ 214

$ 60

$ 128

$ 92

$ 158

$ 128

$ 219

$ 62

$ 130

$ 95

$ 163

$ 130

$ 223

67) Billie is a full-time exempt employee in Providence, Rhode Island, and is paid biweekly. She

earns $44,750 annually and indicated married filing jointly with checkbox withholding on her 2023 Form W-4. She has no additional federal tax withholding. Her state income tax rate is 3.75%. What is the total amount of her FICA, federal, state, and FICA taxes per pay period, assuming pre-tax deductions of 4% for her 401(k) and $150 for health insurance? Note: Use the wage-bracket table to determine the federal tax deduction. Do not round intermediate calculations. Round your final answer to 2 decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Married Filing Head of Household Single or Married Adjusted Wage Jointly Filing Separately Amount (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 38 $ $ 66 $ $ $ 1,4 1,4 102 120 102 170 40 60 $ $ $ 40 $ $ 68 $ $ $ 1,4 1,4 104 122 104 175 60 80 $ $ $ 42 $ $ 71 $ $ $ 1,4 1,5 106 125 106 179 80 00 $ $ $ 44 $ $ 73 $ $ $ 1,5 1,5 109 127 109 183 00 20 $ $ $ 46 $ $ 76 $ $ $ 1,5 1,5 111 130 111 188 20 40 $ $ $ 48 $ $ 78 $ $ $ 1,5 1,5 114 132 114 192 40 60 $ $ $ 50 $ $ 80 $ $ $ 1,5 1,5 116 136 116 197 60 80

$ 1,5 80 $ 1,6 00 $ 1,6 20 $ 1,6 40 $ 1,6 60 $ 1,6 80

$ 1,6 00 $ 1,6 20 $ 1,6 40 $ 1,6 60 $ 1,6 80 $ 1,7 00

A) B) C) D)

$230.52 $285.52 $313.52 $324.52

$ 52

$ 118

$ 83

$ 141

$ 118

$ 201

$ 54

$ 121

$ 85

$ 145

$ 121

$ 205

$ 56

$ 123

$ 88

$ 149

$ 123

$ 210

$ 58

$ 126

$ 90

$ 154

$ 126

$ 214

$ 60

$ 128

$ 92

$ 158

$ 128

$ 219

$ 62

$ 130

$ 95

$ 163

$ 130

$ 223

68) Stark is a full-time exempt employee in Little Rock, Arkansas, where his state income tax

rate is 5.9%. He earns $41,450 annually and is paid semimonthly. He has indicated that he is married filing jointly with 2 dependents under the age of 17 on his 2023 Form W-4. He has checked the box on Step 2 of his W-4 and has $75 additional income tax per pay period. His pre-tax health insurance is $100.00 per pay period. Stark contributes 5% of his pay to his 401(k). Assuming that he has no other deductions, what is Stark's net pay for the period? Note: Use the percentage method for the federal income tax. Do not round intermediate calculations. Round your final answer to two decimal places. Married Filing Jointly 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A $ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 15,030

B $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 15,030

C $ 0.00 $ 0.00 $ 45.80 $ 214.52 $ 678.72 $ 1,546.08 $ 2,201.44 $ 3,887.39

D 0% 10% 12% 22% 24% 32%

E $ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165

35%

$ 10,213

37%

$ 15,030

Single or Married Filing Separately 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A B C D E

$ 0 $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106

$ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106 $ 12,333

$ 12,333

$ 0.00 $ 0.00 $ 22.90 $ 107.14 $ 339.46 $ 772.90 $ 1,100.58 $ 3,630.03

0% 10% 12% 22% 24% 32% 35%

$ 0 $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106

37%

$ 12,333

Head of Household 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A $ 0 $ 433 $ 760 $ 1,680 $ 2,420 $ 4,227 $ 5,251 $ 12,477 A) B) C) D)

B $ 433 $ 760 $ 1,680 $ 2,420 $ 4,227 $ 5,251 $ 12,477

C $ 0.00 $ 0.00 $ 32.70 $ 143.10 $ 305.90 $ 739.58 $ 1,067.26 $ 3,596.36

D 0% 10% 12% 22% 24% 32% 35%

E $ 0 $ 433 $ 760 $ 1,680 $ 2,420 $ 4,227 $ 5,251

37%

$ 12,477

$1,256.51 $1,325.35 $1,250.35 $1,336.71

69) Stark is a full-time exempt employee in Little Rock, Arkansas, where his state income tax

rate is 5.9%. He earns $38,650 annually and is paid semimonthly. He has indicated that he is married filing jointly with 2 dependents under the age of 17 on his 2023 Form W-4. He has checked the box on Step 2 of his W-4 and has $75 additional income tax per pay period. His pre-tax health insurance is $100.00 per pay period. Stark contributes 5% of his pay to his 401(k). Assuming that he has no other deductions, what is Stark's net pay for the period? Note: Use the percentage method for the federal income tax. Do not round intermediate calculations. Round your final answer to two decimal places. Married Filing Jointly 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A $ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 15,030

B $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 15,030

C $ 0.00 $ 0.00 $ 45.80 $ 214.52 $ 678.72 $ 1,546.08 $ 2,201.44 $ 3,887.39

D 0% 10% 12% 22% 24% 32%

E $ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165

35%

$ 10,213

37%

$ 15,030

$ 0 $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106

$ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106 $ 12,333

$ 12,333

$ 0.00 $ 0.00 $ 22.90 $ 107.14 $ 339.46 $ 772.90 $ 1,100.58 $ 3,630.03

0% 10% 12% 22% 24% 32% 35%

$ 0 $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106

37%

$ 12,333

B $ 433 $ 760 $ 1,680 $ 2,420 $ 4,227 $ 5,251 $ 12,477

C $ 0.00 $ 0.00 $ 32.70 $ 143.10 $ 305.90 $ 739.58 $ 1,067.26 $ 3,596.36

D 0% 10% 12% 22% 24% 32% 35%

E $ 0 $ 433 $ 760 $ 1,680 $ 2,420 $ 4,227 $ 5,251

37%

$ 12,477

$1,161.15 $1,229.99 $1,154.99 $1,235.51

70) Madison is a full-time exempt employee in Tullahoma, Tennessee, who earns $48,150

annually. She is married filing jointly with one dependent under 17 and one other dependent per her 2023 Form W-4, and is paid semimonthly. Madison checked the Step 2 checkbox and has $65.00 additional withholding as a result of her spouse’s employment. She contributes $150.00 per pay period to her 401(k) and has pre-tax health insurance and AFLAC deductions of $50.00 and $75.00, respectively. Madison contributes $25.00 per pay period to the United Way. What is her net pay? Note: Use the percentage method. Do not round intermediate calculations. Round final answers to 2 decimal places. Married Filing Jointly 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage The tentative Plus this of the amount Amount (line 1h) is: amount to percentage— that the withhold is: Adjusted Wage At least— But less exceeds— than— A $ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 15,030

B $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 15,030

C $ 0.00 $ 0.00 $ 45.80 $ 214.52 $ 678.72 $ 1,546.08 $ 2,201.44 $ 3,887.39

D 0% 10% 12% 22% 24% 32%

E $ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165

35%

$ 10,213

37%

$ 15,030

A $ 0 $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106

B $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106 $ 12,333

$ 12,333

C $ 0.00 $ 0.00 $ 22.90 $ 107.14 $ 339.46 $ 772.90 $ 1,100.58 $ 3,630.03

D 0% 10% 12% 22% 24% 32% 35%

E $ 0 $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106

37%

$ 12,333

B $ 433 $ 760 $ 1,680 $ 2,420 $ 4,227 $ 5,251 $ 12,477

C $ 0.00 $ 0.00 $ 32.70 $ 143.10 $ 305.90 $ 739.58 $ 1,067.26 $ 3,596.36

D 0% 10% 12% 22% 24% 32% 35%

E $ 0 $ 433 $ 760 $ 1,680 $ 2,420 $ 4,227 $ 5,251

37%

$ 12,477

$1,495.83 $1,560.83 $1,472.15 $1,440.09

71) Madison is a full-time exempt employee in Tullahoma, Tennessee, who earns $47,850

B $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 15,030

C $ 0.00 $ 0.00 $ 45.80 $ 214.52 $ 678.72 $ 1,546.08 $ 2,201.44 $ 3,887.39

D 0% 10% 12% 22% 24% 32%

E $ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165

35%

$ 10,213

37%

$ 15,030

A $ 0 $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106

B $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106 $ 12,333

$ 12,333

C $ 0.00 $ 0.00 $ 22.90 $ 107.14 $ 339.46 $ 772.90 $ 1,100.58 $ 3,630.03

D 0% 10% 12% 22% 24% 32% 35%

E $ 0 $ 289 $ 518 $ 1,220 $ 2,276 $ 4,082 $ 5,106

37%

$ 12,333

B $ 433 $ 760 $ 1,680 $ 2,420 $ 4,227 $ 5,251 $ 12,477

C $ 0.00 $ 0.00 $ 32.70 $ 143.10 $ 305.90 $ 739.58 $ 1,067.26 $ 3,596.36

D 0% 10% 12% 22% 24% 32% 35%

E $ 0 $ 433 $ 760 $ 1,680 $ 2,420 $ 4,227 $ 5,251

37%

$ 12,477

$1,550.79 $1,485.79 $1,462.11 $1,430.05

72) River is a full-time exempt employee in Hanover, New Hampshire, who earns $144,100

annually. He is single with no dependents per his 2023 Form W-4 and is paid semimonthly. Form W-4, Step 2 box has not been checked. He contributes 3% per pay period to his 401(k) and has pre-tax health insurance and AFLAC deductions of $150 and $25, respectively. River has a child support garnishment of $450 per pay period. What is his net pay? Note: Use the percentage method. Do not round intermediate calculations. Round your final answer to 2 decimal places. Married Filing Jointly 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) If the Adjusted Wage Amount The Plus this of the (line 1h) is: tentative percentage— amount that amount to the At least— But less withhold is: Adjusted than— Wage exceeds— A B C D E $ 0 $ 1,154 $ 0.00 0% $ 0 $ 1,154 $ 2,071 $ 0.00 10% $ 1,154 $ 2,071 $ 4,881 $ 91.70 12% $ 2,071 $ 4,881 $ 9,102 $ 428.90 22% $ 4,881 $ 9,102 $ 16,329 $ 1,357.52 24% $ 9,102 $ 16,329 $ 20,425 $ 3,092.00 32% $ 16,329 $ 20,425 $ 30,060 $ 4,402.72 35% $ 20,425 $ 30,060 $ 7,774.97 37% $ 30,060

Single or Married Filing Separately 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) (Use these if the box in Step The Plus this of the 2 of Form W-4 is NOT checked) tentative percentage— amount that the At least— But less than— amount to withhold is: Adjusted Wage exceeds— A B C D E

$ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 24,666

$ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 24,666

$ 0.00 $ 0.00 $ 45.80 $ 214.52 $ 678.72 $ 1,546.08 $ 2,201.44 $ 7,259.99

0% 10% 12% 22% 24% 32% 35% 37%

$ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 24,666

Head of Household 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) If the Adjusted Wage Amount The Plus this of the (line 1h) is: tentative percentage— amount that amount to the At least— But less withhold is: Adjusted than— Wage exceeds— A B C D E $ 0 $ 867 $ 0.00 0% $ 0 $ 867 $ 1,521 $ 0.00 10% $ 867 $ 1,521 $ 3,360 $ 65.40 12% $ 1,521 $ 3,360 $ 4,840 $ 286.08 22% $ 3,360 $ 4,840 $ 8,454 $ 611.68 24% $ 4,840 $ 8,454 $ 10,502 $ 1,479.04 32% $ 8,454 $ 10,502 $ 24,954 $ 2,134.40 35% $ 10,502 $ 24,954 $ 7,192.60 37% $ 24,954 A) B) C) D)

$4,260.86 $3,895.46 $3,852.86 $3,810.86

73) River is a full-time exempt employee in Hanover, New Hampshire, who earns $142,000

$ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 24,666

$ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 24,666

$ 0.00 $ 0.00 $ 45.80 $ 214.52 $ 678.72 $ 1,546.08 $ 2,201.44 $ 7,259.99

0% 10% 12% 22% 24% 32% 35% 37%

$ 0 $ 577 $ 1,035 $ 2,441 $ 4,551 $ 8,165 $ 10,213 $ 24,666

$4,203.06 $3,837.66 $3,795.06 $3,753.06

74) Which of the following is the correct sequence for computing taxable income? A) Compute gross pay then deduct garnishments or union dues. B) Compute gross pay, compute FICA, and add those amounts. C) Compute gross pay, and deduct pre-tax voluntary deductions. D) Compute gross pay, deduct pre-tax amounts, and deduct post-tax amounts.

75) Arrow is a full-time exempt employee in Sitka, Alaska, who earns $79,800.00 annually. She

is married filing jointly with two dependents under 17 years of age. Her spouse is unemployed, so her federal income tax is $0. She contributes 4% of her gross pay to her 401(k) and has her health insurance premium of $150 deducted on a pre-tax basis. She has $100 deducted per pay period for a charitable contribution and has union dues of $95 per pay period. She is paid biweekly. What is her net pay? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. A) $2,528.14 B) $2,468.14 C) $2,478.14 D) $2,378.14

76) Arrow is a full-time exempt employee in Sitka, Alaska, who earns $75,000 annually. She is

married filing jointly with two dependents under 17 years of age. Her spouse is unemployed, so her federal income tax is $0. She contributes 4% of her gross pay to her 401(k) and has her health insurance premium of $150 deducted on a pre-tax basis. She has $100 deducted per pay period for a charitable contribution and has union dues of $95 per pay period. She is paid biweekly. What is her net pay? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. A) $2,365.04 B) $2,305.04 C) $2,315.04 D) $2,215.03

77) Quin is a part-time nonexempt employee in Sioux Falls, south Dakota, who earns $8.55 per

hour. During the last biweekly pay period he worked 35 hours. He is married filing jointly with three dependents under 17 and takes the standard withholding, which means his federal income tax deduction is $0. What is his net pay? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. A) $289.32 B) $276.36 C) $277.65 D) $263.36

78) Quin is a part-time nonexempt employee in Sioux Falls, South Dakota, who earns $9.95 per

hour. During the last biweekly pay period he worked 35 hours. He is married filing jointly with three dependents under 17 and takes the standard withholding, which means his federal income tax deduction is $0. What is his net pay? Note: Do not round intermediate calculations. Round final answer to two decimal points. A) $337.88 B) $323.88 C) $321.88 D) $308.88

79) Emery is a salaried nonexempt employee in Evanston, Wyoming, who earns $29,150 per

year for a standard 40-hour workweek and is paid biweekly. According to the 2023 Form W4, Emery is single with no dependents and takes the standard withholding. During the last pay period, she worked 5 hours of overtime. She contributes 3% of her gross pay to her 401(k) on a pre-tax basis and has no other pre-tax deductions. Emery has a garnishment of 10% of her disposable income for a consumer credit lien. What is her net pay? Note: Use the wage-bracket method. Do not round intermediate calculations. Round your final answer to 2 decimal places. Note: Use the wage-bracket method. Do not round intermediate calculations. Round final answer to two decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Adjusted Married Filing Head of Single or Married Wage Amount Jointly Household Filing Separately (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 5 $ 62 $ 32 $ 80 $ 62 $ 98 1,1 1,1 10 25 $ $ $ 7 $ 64 $ 33 $ 82 $ 64 $ 100 1,1 1,1 25 40 $ $ $ 8 $ 66 $ 35 $ 84 $ 66 $ 104 1,1 1,1 40 60 $ $ $ 10 $ 68 $ 37 $ 86 $ 68 $ 109 1,1 1,1 60 80 $ $ $ 12 $ 70 $ 39 $ 89 $ 70 $ 113 1,1 1,2 80 00 $ $ $ 14 $ 73 $ 41 $ 91 $ 73 $ 117 1,2 1,2 00 20

$ 1,2 20 $ 1,2 40 $ 1,2 60 $ 1,2 80 $ 1,3 00 $ 1,3 20 $ 1,3 40 $ 1,3 60 $ 1,3 80 $ 1,4 00 $ 1,4 20 $ 1,4 40 $ 1,4 60 $ 1,4 80

$ 1,2 40 $ 1,2 60 $ 1,2 80 $ 1,3 00 $ 1,3 20 $ 1,3 40 $ 1,3 60 $ 1,3 80 $ 1,4 00 $ 1,4 20 $ 1,4 40 $ 1,4 60 $ 1,4 80 $ 1,5 00

$ 16

$ 75

$ 43

$ 94

$ 75

$ 122

$ 18

$ 78

$ 45

$ 96

$ 78

$ 126

$ 20

$ 80

$ 47

$ 98

$ 80

$ 131

$ 22

$ 82

$ 49

$ 101

$ 82

$ 135

$ 24

$ 85

$ 51

$ 103

$ 85

$ 139

$ 26

$ 87

$ 53

$ 106

$ 87

$ 144

$ 28

$ 90

$ 55

$ 108

$ 90

$ 148

$ 30

$ 92

$ 57

$ 110

$ 92

$ 153

$ 32

$ 94

$ 59

$ 113

$ 94

$ 157

$ 34

$ 97

$ 61

$ 115

$ 97

$ 161

$ 36

$ 99

$ 64

$ 118

$ 99

$ 166

$ 38

$ 102

$ 66

$ 120

$ 102

$ 170

$ 40

$ 104

$ 68

$ 122

$ 104

$ 175

$ 42

$ 106

$ 71

$ 125

$ 106

$ 179

A) $860.56

B) $880.43 C) $919.42 D) $918.28

80) Emery is a salaried nonexempt employee in Evanston, Wyoming, who earns $29,000 per

year for a standard 40-hour workweek and is paid biweekly. According to the 2023 Form W4, Emery is single with no dependents and takes the standard withholding. During the last pay period, she worked 5 hours of overtime. She contributes 3% of her gross pay to her 401(k) on a pre-tax basis and has no other pre-tax deductions. Emery has a garnishment of 10% of her disposable income for a consumer credit lien. What is her net pay? Note: Use the wage-bracket method. Do not round intermediate calculations. Round final answer to two decimal places. 2023 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later BIWEEKLY Payroll Period If the Adjusted Married Filing Head of Single or Married Wage Amount Jointly Household Filing Separately (line 1h) is At But Standard Form W- Standard Form W- Standard Form Wleast less withhold 4, Step withhold 4, Step withhold 4, Step than ing 2, ing 2, ing 2, Checkbox Checkbox Checkbox withhold withhold withhold ing ing ing The Tentative Withholding Amount is: $ $ $ 5 $ 62 $ 32 $ 80 $ 62 $ 98 1,1 1,1 10 25 $ $ $ 7 $ 64 $ 33 $ 82 $ 64 $ 100 1,1 1,1 25 40 $ $ $ 8 $ 66 $ 35 $ 84 $ 66 $ 104 1,1 1,1 40 60 $ $ $ 10 $ 68 $ 37 $ 86 $ 68 $ 109 1,1 1,1 60 80 $ $ $ 12 $ 70 $ 39 $ 89 $ 70 $ 113 1,1 1,2 80 00 $ $ $ 14 $ 73 $ 41 $ 91 $ 73 $ 117 1,2 1,2 00 20 $ $ $ 16 $ 75 $ 43 $ 94 $ 75 $ 122 1,2 1,2 20 40

$ 1,2 40 $ 1,2 60 $ 1,2 80 $ 1,3 00 $ 1,3 20 $ 1,3 40 $ 1,3 60 $ 1,3 80 $ 1,4 00 $ 1,4 20 $ 1,4 40 $ 1,4 60 $ 1,4 80

$ 1,2 60 $ 1,2 80 $ 1,3 00 $ 1,3 20 $ 1,3 40 $ 1,3 60 $ 1,3 80 $ 1,4 00 $ 1,4 20 $ 1,4 40 $ 1,4 60 $ 1,4 80 $ 1,5 00

A) B) C) D)

$855.50 $875.37 $914.36 $913.22

$ 18

$ 78

$ 45

$ 96

$ 78

$ 126

$ 20

$ 80

$ 47

$ 98

$ 80

$ 131

$ 22

$ 82

$ 49

$ 101

$ 82

$ 135

$ 24

$ 85

$ 51

$ 103

$ 85

$ 139

$ 26

$ 87

$ 53

$ 106

$ 87

$ 144

$ 28

$ 90

$ 55

$ 108

$ 90

$ 148

$ 30

$ 92

$ 57

$ 110

$ 92

$ 153

$ 32

$ 94

$ 59

$ 113

$ 94

$ 157

$ 34

$ 97

$ 61

$ 115

$ 97

$ 161

$ 36

$ 99

$ 64

$ 118

$ 99

$ 166

$ 38

$ 102

$ 66

$ 120

$ 102

$ 170

$ 40

$ 104

$ 68

$ 122

$ 104

$ 175

$ 42

$ 106

$ 71

$ 125

$ 106

$ 179

81) Which of the following is true about direct deposit as a method of paying employees? A) Direct deposit is the least secure payment method. B) Direct deposit is the least used payment method. C) Direct deposit is readily transferable and highly liquid. D) Direct deposit is the most convenient pay method for employers.

82) Why do employers use paper checks as method of disbursing employee pay? A) Paying employees by check allows the employer flexibility with its bank accounts. B) Paying employees by check fosters easy payroll review. C) Paying employees by check ensures that every employee receives timely pay. D) Paying employees by check requires a traceable account for employee payments.

83) Best practices for paying employees by cash includes which of the following? A) Maintenance of a separate checking account for payroll purposes. B) Keeping multiple check registers for the firm's accounts. C) Logging the number, amount, and purpose of each payroll disbursement. D) Establishing an unclaimed property account for uncashed checks.

84) What is an advantage of paycards from the employee's perspective? A) Long processing times for pay disbursements. B) Direct access to compensation on the pay date. C) Cash payments that are easily accessible. D) Access to payroll data on non-secured website.

85) From the employer's perspective, which of the following is a challenge of paying employees

by paycard? A) Reduction in payroll processing costs. B) Secure processing of employee compensation. C) A chance that the employee will lose their paycard. D) Employee self-maintenance of personnel records.

86) Which entity is responsible for ensuring employee pay in the event a paycard is lost? A) The employee B) The employer C) The issuing financial institution D) The Federal Deposit Insurance Corporation

87) What is a disadvantage to using checks as a method of transmitting employee compensation? A) Convenience of retrieving inaccurate pay disbursements. B) Loss or destruction of the check. C) Ease of paying traveling employees. D) Instant access to pay for employees.

88) Which of the following is an indicator of possible payroll check fraud? A) Consistent font used in the check. B) Pre-printed company name on the check. C) Absence of the bank or recipient address. D) Check number is high.

89) The annual payroll tax guide with tax withholding amounts distributed by the IRS is called

_________. A) Publication 15-B B) Publication 15-T C) Publication 15 D) Publication 15-C

90) _________ is an emerging pay disbursement method that allows nearly instantaneous access

to compensation. A) Paycard B) Cryptocurrency C) Cash D) Direct Deposit

91) Level 51 Arts is located in New York and has employees who live in Vermont, New

Hampshire, Connecticut, and Pennsylvania. For which state will the company not collect income tax? A) Vermont B) Connecticut C) New Hampshire D) Pennsylvania

92) The factors that determine an employee's federal income tax withholding are _________. A) Marital status, birth date, taxable pay, and pay frequency B) Number of dependents under 17, other dependents, marital status, and taxable pay C) Marital status, dependents, gross pay, and pay frequency D) Pay frequency, number of dependents, taxable pay, and marital status

93) The percentage method of determining an employee's federal income tax deductions

_________. A) is less complex than the wage-bracket method B) allows payroll accountants to determine Federal income tax for the firm itself C) considers deductions for dependents and additions for other income D) is less accurate than the results gained from using the wage-bracket method

94) The purpose of the wage base used for the Social Security tax is _________. A) to fund the federal Social Security system from employee pay alone B) to establish a maximum salary level for application of the tax to employee pay C) to determine the amount of Social Security tax to withhold from an employee's pay D) to compute the total amount of Social Security tax that a firm must pay

95) The percentage of the Medicare tax withholding _________. A) is the same for every employee earning less than $160,200 B) is subject to change based on the firm's location C) changes every year in response to industry needs D) is the same for both employer and employee up to $175,000 in employee income

96) State and Local Income Tax rates _________. A) exist at the same level in every state B) vary among states and localities C) are determined by the IRS D) are remitted to federal government

97) Post-Tax deductions are amounts _________. A) always voluntarily chosen by the employee B) that the employer withholds based on the employer's tax liability C) that may include voluntary and mandatory deductions D) that are only mandatory deductions like garnishments and union dues

98) The purpose of paycards as a pay method is to _________. A) encourage employees to open bank accounts B) allow unbanked employees to receive their pay securely C) protect payroll processes against embezzlement D) promote debit card use to raise revenue for banks

99) The Tax Cuts and Jobs Act of 2017 changed the process of determining federal tax

withholding amounts as of _________. A) January 1, 2018 B) January 1, 2019 C) January 1, 2020 D) January 1, 2021

100)

The use of _________ is the easiest pay disbursement method for employers. A) Cash B) Check C) Direct Deposit D) Paycards

101)

The Social Security wage base was _________ during 2023. A) $137,700 B) $142,800 C) $147,000 D) $160,200

Answer Key Test name: Chapter 5 1) FALSE 2) FALSE 3) TRUE 4) TRUE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) FALSE 10) TRUE 11) D 12) A 13) B 14) D 15) D 16) C 17) A 18) C 19) A 20) B 21) B 22) B 23) B 24) A 25) A 26) A 27) A 28) B 29) B 30) C 31) C 32) C 33) C 34) B 35) B 36) C 37) C

38) C 39) C 40) D 41) D 42) B 43) B 44) C 45) C 46) A 47) A 48) C 49) C 50) A 51) A 52) C 53) C 54) C 55) C 56) D 57) D 58) B 59) C 60) B 61) B 62) B 63) B 64) C 65) C 66) B 67) B 68) C 69) C 70) C 71) C 72) D 73) D 74) C 75) D 76) D 77) B

78) C 79) C 80) C 81) D 82) D 83) C 84) B 85) C 86) B 87) B 88) C 89) B 90) B 91) C 92) B 93) C 94) B 95) A 96) B 97) C 98) B 99) C 100) C 101) D

100

Chapter 6:__________ 1) Employers match all taxes withheld from employee pay. ⊚ true ⊚ false

2) Employers pay taxes based on employee compensation such as FICA taxes, SUTA tax, and

FUTA tax. ⊚ true ⊚ false

3) SUTA tax rates vary among employers ⊚ true ⊚ false

4) A firm's frequency of payroll tax deposits is the same for every company. ⊚ true ⊚ false

5) A firm that had $48,985 in annual payroll tax liability during the lookback period will be a

monthly schedule depositor. ⊚ true ⊚ false

6) An employer files Form 941 when they deposit payroll taxes. ⊚ true ⊚ false

7) Schedule B must accompany Form 941 for a firm classified as a monthly payroll tax

depositor. ⊚ true ⊚ false

8) Form 940 is the Employer's Annual Federal Unemployment (FUTA) Tax Return. ⊚ true ⊚ false

9) Form W-3 is the summary report of wages and salaries paid to employees during a calendar

year and is due to the Social Security Administration by January 31 of the following year. ⊚ true ⊚ false

10) Employers who inadvertently fail to file quarterly or annual reports can file them with no

penalty. ⊚ true ⊚ false

11) What is the term for mandatory payroll taxes that the employer must pay? A) Mandated taxes B) Legislated deductions C) Statutory deductions D) Legal deductions

12) Which of the following items is never the employer's responsibility to pay? A) SUTA taxes B) FUTA taxes C) Employee federal income tax D) FICA taxes

13) On a recent paycheck, the employee’s taxes were as follows: Federal withholding, $40;

Social Security tax, $50.20; Medicare, $20.93; and state income tax, $23.25. What is the employer’s share for these taxes? A) $63.25 B) $71.13 C) $94.38 D) $134.38

14) On a recent paycheck, the employee’s taxes were as follows: Federal withholding, $28;

Social Security tax, $38.20; Medicare, $8.93; and state income tax, $11.25. What is the employer's share for these taxes? A) $39.25 B) $47.13 C) $58.38 D) $86.38

15) A full-time exempt employee who earns an annual salary of $290,000. What is the

employer's annual FICA tax responsibility for the employee’s annual salary, based on an annual Social Security tax wage base of $160,200? A) $13,441.40 B) $14,137.40 C) $11,049.50 D) $4,205.00

16) A full-time exempt employee who earns an annual salary of $195,000. What is the

employer's annual FICA tax responsibility for the employee’s annual salary, based on an annual Social Security tax wage base of $160,200? A) $11,245.50 B) $12,759.90 C) $8,853.60 D) $2,827.50

17) The Mockingbird Tavern had 9 employees and total annual wages of $321,668.50 during the

previous year. All employees earned more than $7,000 during the year. What is the Mockingbird Tavern's FUTA tax liability? A) $1,930.01 B) $882.15 C) $378.00 D) $569.43

18) The Mockingbird Tavern had nine employees and total annual wages of $275,668.50 during

the previous year. All employees earned more than $7,000 during the year. What is the Mockingbird Tavern's FUTA tax liability? A) $1,654.01 B) $756.00 C) $378.00 D) $488.00

19) Yellow Diamond Limousines Incorporated operates as a Nevada business. The SUTA wage

base for Nevada is $40,100. Yellow Diamond Limousines Incorporated's SUTA tax rate is 3.40%. The employees' annual earnings for the past calendar year are as follows: John, $46,200; Evie $57,600; Jason, $35,150; and Alec $54,800. What is Yellow Diamond Limousines Incorporated's SUTA tax liability for the year? A) $4,958.90 B) $5,285.30 C) $6,587.50 D) $1,363.40

20) Yellow Diamond Limousines Incorporated operates as a Nevada business. The SUTA wage

base for Nevada is $40,100. Yellow Diamond Limousines Incorporated's SUTA tax rate is 3.4%. The employees' annual earnings for the past calendar year are as follows: John, $41,800; Evie $55,400; Jason, $28,550; and Alec $52,600. What is Yellow Diamond Limousines Incorporated's SUTA tax liability for the year? A) $4,377.50 B) $5,060.90 C) $6,063.90 D) $1,135.60

21) Lye’s Apiaries operates as a Wisconsin business. The employees' annual earnings for the past

calendar year are as follows: Leesa, $36,200: Khalise, $28,965: Stopi, $2,975; and Jobs, $6,891. What is Lye’s Apiaries’ FUTA tax liability for the year? A) $178.00 B) $280.33 C) $143.20 D) $174.82

22) Lye’s Apiaries operates as a Wisconsin business. The employees' annual earnings for the past

calendar year are as follows: Leesa, $34,800: Khalise, $27,565: Stopi, $1,575; and Jobs, $6,877. What is Lye’s Apiaries’ FUTA tax liability for the year? A) $168.00 B) $264.59 C) $134.71 D) $165.00

23) Oceanic Recycling is a Maryland business that has a SUTA rate of 5.10% and an annual

SUTA wage base of $8,500. The employee earnings for the past calendar year are: Blake, $32,680; Puja, $18,190; Sissi, $6,365; Mike, $10,340. What is the total FUTA and SUTA tax liability for Oceanic Recycling? A) $1,789.31 B) $1,960.01 C) $1,650.34 D) $2,479.38

24) Oceanic Recycling is a Maryland business that has a SUTA rate of 5.1% and an annual

SUTA wage base of $8,500. The employee earnings for the past calendar year are: Blake, $32,180; Puja, $17,690; Sissi, $5,865; Mike, $9,840. What is the total FUTA and SUTA tax liability for Oceanic Recycling? A) $1,760.81 B) $1,902.00 C) $1601.50 D) $2,406.00

25) Tea Tree Therapeutics is an Arizona company with a SUTA tax of 5.2% and a SUTA wage

base of $8,000. The employee earnings for the past year are: Theri, $25,445; Gregori, $7,550; Alain, $21,055; and Katlyn, $5,925. Arizona employers pay a State Unemployment Insurance Tax (SUI) of 2.0% on all wages up to the first $7,000 annually. What is the total of Tea Tree Therapeutics’ employer-share taxes for FUTA, SUTA, SUI, and FICA for the year? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $6,910.29 B) $6,766.45 C) $6,820.84 D) $6,563.73

26) Tea Tree Therapeutics is an Arizona company with a SUTA tax of 5.2% and a SUTA wage

base of $8,000. The employee earnings for the past year are: Theri, $24,850; Gregori, $6,700: Alain, $19,950; and Katlyn, $4,820. Arizona employers pay a State Unemployment Insurance Tax (SUI) of 2.0% on all wages up to the first $7,000 annually. What is the total of Tea Tree Therapeutics’ employer-share taxes for FUTA, SUTA, SUI, and FICA for the year? A) $6,492.49 B) $6,348.65 C) $6,403.04 D) $6,145.93

27) Employer tax deposits are usually processed through the: A) EFTPS. B) ACH. C) EFT. D) AFTCA.

28) The time period that the IRS uses to determine a firm's payroll tax deposit schedule begins in

which month each year? A) May B) June C) July D) August

29) Leap Off Tours had a payroll tax liability of $67,553 during the lookback period. How

frequently must the firm deposit its payroll taxes? A) Monthly B) Annually C) Semi-weekly D) Next Business Day

30) What deposit schedule must all new employers with payroll tax liability in excess of

$100,000 on any pay date follow? A) Annual B) Monthly C) Semi-weekly D) Next business day

31) Destany’s Deliveries had $38,550 of payroll tax liability during their lookback period. They

pay their employees on a biweekly basis. Assuming that no payday has a tax liability in excess of $100,000, when is their payroll tax deposit due? A) By the last day of the current month B) By the 10th of the following month C) By the 15th of the following month D) By the last day of the following month

32) Cronin Computers had $987,950 of annual payroll taxes during the lookback period. The

firm pays its employees biweekly on Tuesdays. Assuming that no payday has a tax liability in excess of $100,000, when are the payroll tax deposits due? A) By the end of the current month B) Within two weeks of the pay date C) By Friday of the current week D) By Wednesday of the following week

33) Higgins Handweaving, a semi-weekly schedule depositor, pays its employees semimonthly

on the 1st and 15th of the month. Per company policy, employees are paid their annual bonuses on December 14, the final payday of the year. On Wednesday, December 14, the bonuses were paid and the payroll tax liability was $165,957. When are the payroll tax deposits due for the bonuses? A) Wednesday, December 21 B) Friday, December 16 C) Thursday, December 15 D) Friday, December 30

34) Marti’s Meats has received a letter from the IRS that due to their tax liability of $41,950

during the lookback period, they are a monthly schedule depositor. Which tax form should they file to report their payroll taxes? A) Form 940 B) Form 945 C) Form 944 D) Form 941

35) Sol Luna Ceramics has been a monthly schedule depositor. During the current year, they

experienced an economic downturn during which the firm had to lay off all but one employee. Their payroll taxes have decreased to less than $500 per year. Which form should they file to reconcile their taxes? A) Form 944 B) Form 943 C) Form 942 D) Form 941

36) Winter Bear Masks had annual tax liability of $78,493 during their most recent lookback

period. Which form(s) must they file to reconcile their payroll taxes? A) Form 940 B) Form 944 C) Form 941 and Schedule B D) Form 941

37) Simon’s Jewelry files a Form 944 to report its payroll tax liability. Line 5 had a total of

$4,557.00. Line 13m in Part 2 reported wages of $4.556.88. What needs to be done to reconcile the two amounts? A) $0.12 needs to be added via line 6 for the current year's adjustments. B) $0.12 needs to be subtracted via line 6 for the current year's adjustments. C) Nothing needs to be done because both totals are correctly computed. D) Change line 5 to match line 13m.

38) Which copy of Form W-2 should be submitted to the State, City, or Local Department? A) Copy 1 B) Copy D C) Copy 3 D) Copy C

39) Pita is employed as an administrator for Postman Plus. Pita noticed that Box 1 and Box 3

amounts on the W-2 were different. b Employer identification 1 Wages, tips, other number (EIN) compensation

2 Federal income tax withheld

c Employer's name, address, and ZIP code

4 Social security tax withheld

3 Social security wages

What is a reason why the amounts in boxes 1 and 3 would be different? A) Pita received tips, which are not subject to Social Security taxes. B) Pita contributed to a pre-tax 401(k) that reduced Social Security taxable wages. C) Pita has Section 125 deductions that reduced Social Security taxable wages. D) Pita's wages were subject to a pre-tax garnishment.

40) The accountant for Lillibit’s Kennels, filed Form 941 for the first quarter on May 15. The

amount of taxes due to be paid with Form 941 was $12,778 and the taxes are paid when the Form 941 is filed. The first failure to file notice was dated May 5. What is the amount that must be remitted, including the IRS penalty for the failure to file? A) $14,055.80 B) $13,416.90 C) $15,972.50 D) $14,694.70

41) The accountant for Lillibit’s Kennels, filed Form 941 for the first quarter on May 15. The

amount of taxes due to be paid with Form 941 was $10,678.00 and the taxes are paid when the Form 941 is filed. The first failure to file notice was dated May 5. What is the amount that must be remitted, including the IRS penalty for the failure to file? A) $11,745.80 B) $11,211.90 C) $13,347.50 D) $12,279.70

42) Which of the following is an example of an employer's payroll-related responsibilities? A) Tax deposits and filings B) Business lunches for clients C) Vehicle registration for company cars D) Business card and letterhead printing

43) An employer’s report of the employees contained in each division is called: A) employee concentration. B) department classification. C) labor distribution. D) company division.

44) Plutonium Casting has 30 employees, who are distributed as follows: Design 9 employees Fabrication 6 employees Purchasing 3 employees Administration 7 employees Sales 5 employees

The payroll-related costs for the year are $688,096. If Plutonium Casting does not use departmental classification, how much is allocated to each department? A) $137,619.20 B) $164,704.00 C) $208,096.53 D) $219,503.42

45) Plutonium Casting has 30 employees, who are distributed as follows: Design 4 employees Fabrication 10 employees Purchasing 8 employees Administration 3 employees Sales 5 employees

The payroll-related costs for the year are $568,096. If Plutonium Casting does not use departmental classification, how much is allocated to each department? A) $113,619.20 B) $140,224.00 C) $168,696.53 D) $186,965.30

46) Plutonium Casting has 30 employees, who are distributed as follows: Design 4 employees Fabrication 3 employees Purchasing 7 employees Administration 10 employees Sales 6 employees

The payroll-related costs for the year are $638,096. If Plutonium Casting does use departmental classification, how much is allocated to the Design department? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $63,809.60 B) $127,619.20 C) $85,079.47 D) $148,889.07

47) Plutonium Casting has 30 employees, who are distributed as follows: Design 4 employees Fabrication 10 employees Purchasing 8 employees Administration 3 employees Sales 5 employees

The payroll-related costs for the year are $568,096.00. If Plutonium Casting does use departmental classification, how much is allocated to the Design department? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $189,365.33 B) $94,682.67 C) $75,746.13 D) $151,492.27

48) Plutonium Casting has 30 employees, who are distributed as follows: Design 6 employees Fabrication 2 employees Purchasing 2 employees Administration 10 employees Sales 10 employees

The payroll-related costs for the year are $798,096. If Plutonium Casting does use departmental classification, how much is allocated to the Fabrication department? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $53,206.40 B) $266,032.00 C) $159,619.20 D) $53,206.40

49) Plutonium Casting has 30 employees, who are distributed as follows: Design 4 employees Fabrication 10 employees Purchasing 8 employees Administration 3 employees Sales 5 employees

The payroll-related costs for the year are $568,096.00. If Plutonium Casting does use departmental classification, how much is allocated to the Fabrication department? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $189,365.33 B) $94,682.67 C) $75,746.13 D) $151,492.27

50) Plutonium Casting has 30 employees, who are distributed as follows: Design 4 employees Fabrication 10 employees Purchasing 6 employees Administration 3 employees Sales 7 employees

The payroll-related costs for the year are $648,096. If Plutonium Casting does use departmental classification, how much is allocated to the Purchasing department? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $129,619.20 B) $86,412.80 C) $151,222.40 D) $216,032.00

51) Plutonium Casting has 30 employees, who are distributed as follows: Design 4 employees Fabrication 10 employees Purchasing 8 employees Administration 3 employees Sales 5 employees

The payroll-related costs for the year are $568,096.00. If Plutonium Casting does use departmental classification, how much is allocated to the Purchasing department? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $189,365.33 B) $94,682.67 C) $75,746.13 D) $151,492.27

52) Plutonium Casting has 30 employees, who are distributed as follows: Design 7 employees Fabrication 4 employees Purchasing 5 employees Administration 6 employees Sales 8 employees

The payroll-related costs for the year are $598,096. If Plutonium Casting does use departmental classification, how much is allocated to the Sales department Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $79,746.13 B) $159,492.27 C) $139,555.73 D) $99,682.67

53) Plutonium Casting has 30 employees, who are distributed as follows: Design 4 employees Fabrication 10 employees Purchasing 8 employees Administration 3 employees Sales 5 employees

The payroll-related costs for the year are $568,096.00. If Plutonium Casting does use departmental classification, how much is allocated to the Sales department? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $189,365.33 B) $94,682.67 C) $75,746.13 D) $151,492.27

54) Plutonium Casting has 30 employees, who are distributed as follows: Design 4 employees Fabrication 5 employees Purchasing 7 employees Administration 8 employees Sales 6 employees

The payroll-related costs for the year are $698,096. If Plutonium Casting does use departmental classification, how much is allocated to the Administration department? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $116,349.33 B) $186,158.93 C) $139,619.20 D) $162,889.07

55) Plutonium Casting has 30 employees, who are distributed as follows: Design 4 employees Fabrication 10 employees Purchasing 8 employees Administration 3 employees Sales 5 employees

The payroll-related costs for the year are $568,096.00. If Plutonium Casting does use departmental classification, how much is allocated to the Administration department? Note: Do not round intermediate calculations. Round final answer to 2 decimal places. A) $189,365.33 B) $94,682.67 C) $56,809.60 D) $151,492.27

56) Which of the following is not a function of a benefit analysis report? A) It is an analysis of the benefits paid to employees. B) It is an analysis of each employee's benefit package. C) It is an analysis of the effect of labor costs on departmental profitability. D) It is an analysis of each department's benefit to the company.

57) What factor is included in an employee's total compensation report? A) Employee marital status and payroll history B) Paid time off such as sick and vacation time C) Worker's compensation insurance premiums D) Company marketing programs

58) Izzie works for a public library in West Virginia, with a salary of $24,600 annually. Izzie

contributes 5.0% to 401(k), of which the employer matches the percentage contribution. The employer contributes $920 per month for Izzie’s health insurance, $322 per month for the life insurance, and $66 per month for the AD&D insurance. The library pays employer-only taxes and insurance that comprise an additional 18% of Izzie's annual salary. What is Izzie's total cost to the employer? A) $24,600.00 B) $33,810.00 C) $41,526.00 D) $45,954.00

59) Izzie works for a public library in West Virginia, with a salary of $23,500 annually. Izzie

contributes 5% to 401(k), of which the employer matches the percentage contribution. The employer contributes $700 per month for Izzie’s health insurance, $300 per month for the life insurance, and $55 per month for the AD&D insurance. The library pays employer-only taxes and insurance that comprise an additional 18% of Izzie's annual salary. What is Izzie's total cost to the employer? A) $23,500 B) $29,960 C) $37,335 D) $41,565

60) Achille works for Liberty Autos in Oregon, with an annual salary of $44,750 annually.

Achille contributes $200 per month to 401(k), of which the employer matches half of the contribution. Liberty Autos contributes $900 per month to the health insurance, $150 per month to the life insurance, and $25 per month to the AD&D policy. Achille receives a profit-sharing bonus worth 5% of annual salary at the end of each year and $3,000 in tuition reimbursement. Liberty Autos pays employer-only taxes and insurance that comprises an additional 15% of Achille's annual salary. What is Achille's total cost to the employer? A) $44,750.00 B) $70,800.00 C) $68,562.50 D) $64,087.50

61) Achille works for Liberty Autos in Oregon, with an annual salary of $42,250 annually.

Achille contributes $200 per month to 401(k), of which the employer matches half of the contribution. Liberty Autos contributes $900 per month to the health insurance, $150 per month to the life insurance, and $25 per month to the AD&D policy. Achille receives a profit-sharing bonus worth 5% of annual salary at the end of each year and $2,750 in tuition reimbursement. Liberty Autos pays employer-only taxes and insurance that comprises an additional 15% of Achille's annual salary. What is Achille's total cost to the employer? A) $42,250.00 B) $67,550.00 C) $65,437.50 D) $61,212.50

62) Marlis works for McGorray Brothers Coffee in Idaho, with an annual salary of $46,750. The

employer contributes 1% of salary to a pension fund and pays the following monthly amounts for insurance: health, $700; life, $250; AD&D, $35. Marlis receives $80 per month for a gym membership and receives a $1,000 bonus at the end of the year. McGorray Brothers Coffee pays employer-only taxes and insurance that comprises an additional 19% of Marlis's annual salary. What is Marlis's total cost to the employer? A) $69,880.00 B) $60,997.50 C) $65,880.00 D) $68,550.00

63) Marlis works for McGorray Brothers Coffee in Idaho, with an annual salary of $37,750. The

employer contributes 1% of salary to a pension fund and pays the following monthly amounts for insurance: health, $700; life, $250; AD&D, $35. Marlis receives $80 per month for a gym membership and receives a $1,000 bonus at the end of the year. McGorray Brothers Coffee pays employer-only taxes and insurance that comprises an additional 19% of Marlis's annual salary. What is Marlis's total cost to the employer? A) $59,080.00 B) $51,907.50 C) $55,080.00 D) $57,750.00

64) Elin is an employee of Leeper Farms in Oklahoma with an annual salary of $38,050. Leeper

Farms has provided uniforms worth $450 and training worth $1,050 as part of employment. Elin contributes 6% to 401(k), of which the employer matches half. Elin's employer pays the following monthly amounts toward insurance: health, $925; life, $450; AD&D, $50. Leeper Farms pays employer-only taxes and insurance that comprises an additional 15% of Elin's annual salary. What is Elin's total annual compensation? A) $68,899 B) $63,499 C) $62,399 D) $57,021

65) Elin is an employee of Leeper Farms in Oklahoma with an annual salary of $34,050. Leeper

66) Which of the following documents will not contain annual compensation report data? A) Employee earnings report B) Vendor invoices C) Payroll tax reports D) Marketing invoices

67) Which of the following tasks would not use data from the Benefit Analysis Report? A) Budgeting B) Benchmarking C) Departmental Reporting D) Labor Planning

68) How might a business not improve its operations by generating and reviewing a benefit

analysis report? A) Incorrect departmental labor distribution B) Awareness of employee-related costs C) Increased departmental profitability D) Well-designed budgets

69) Soza earns $1,850 per pay period. Compute the FICA taxes for both employee and employer

share. What is the total of the employee- and employer-share FICA tax liabilities for Soza’s pay per pay period? Note: Assume that Soza has not met the Social Security wage base. A) $141.53 B) $273.90 C) $283.06 D) $307.20

70) Kerei earns $210,000 annually. Compute the FICA taxes for both the employee and

employer share. The Social Security wage base is $147,000. What is the total employee- and employer-share annual FICA tax liability for Kerei's pay? A) $24,408.00 B) $23,742.00 C) $23,887.20 D) $24,872.50

71) Spender Pay Solutions has 24 employees and is located in Kansas. The total wages for the

last year were $889,458. What was the FUTA tax liability for the year? Note: Assume that all employees have exceeded the annual FUTA wage base of $7,000 per employee and that the FUTA rate is 0.6%. A) $958 B) $968 C) $1,088 D) $1,008

72) Pancakes and Waffles, Incorporated is located in Colorado has a SUTA tax rate of 4.20% and

a wage base of $20,400. During the last calendar year, the company paid $584,100 in wages and salaries for 11 employees. What is the total of the FUTA and SUTA tax liabilities for Pancakes and Waffles, Incorporated? Note: Assume that all employees have exceeded the FUTA and SUTA wage bases. A) $6,745.20 B) $7,207.30 C) $8,316.00 D) $9,886.80

73) The payroll tax(es) for which an employer must match the entire amount of the employee's

deduction include _________. A) Social Security and Federal withholding taxes (up to $160,200 for Social Security tax) B) Federal Income tax and FUTA C) Social Security and Medicare taxes (up to $160,200 for Social Security tax) D) SUTA tax

74) The IRS uses the _________ to determine how often a company must deposit payroll taxes. A) Current year tax deposits B) Company’s Form W-3 C) Company’s annual report D) Lookback period

75) The form that employers use to report annual Federal Unemployment Tax liability is

_________. A) Form 940 B) Form 944 C) Form 943 D) Form 941

76) The total of a firm's annual wages and salaries must match on Forms _________. A) 944 and W-3 B) 940 and W-2 C) 941 and W-2 D) 941 and W-3

77) If an employer fails to file payroll tax reports, the firm will be penalized at a rate of

_________ per month. A) 10% B) 5% C) 15% D) 2%

78) Employee compensation such as de minimis fringe benefits, regular benefits and tax

matching may amount to at least another _________ of each employee's annual pay. A) 40% B) 50% C) 60% D) 70%

79) _________ allows firms to allocate labor costs by any measure they need for managerial

analysis. A) Labor costing B) Benefit analysis C) Labor distribution D) Benchmarking

80) An employee’s total compensation report starts with the _________. A) Employee’s annual salary B) Employee’s taxes C) Employee’s benefits D) Employee’s raises

81) A(n) _________ reflects the total of salary/wages, bonuses, benefits, and employer paid costs

in an employee's pay. A) Total compensation report B) Employee compensation report C) Benchmarking report D) Industry compensation report

82) Form _________ was changed in 2021 to reflect employee sick leave. A) 940 B) 941 C) 943 D) 944

Answer Key Test name: Chapter 6 1) FALSE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) FALSE 8) TRUE 9) TRUE 10) FALSE 11) C 12) C 13) B 14) B 15) B 16) B 17) C 18) C 19) B 20) B 21) C 22) C 23) A 24) A 25) C 26) C 27) A 28) C 29) C 30) D 31) C 32) C 33) C 34) D 35) A 36) C 37) A

38) A 39) C 40) C 41) C 42) A 43) C 44) A 45) A 46) C 47) C 48) A 49) A 50) A 51) D 52) B 53) B 54) B 55) C 56) D 57) B 58) D 59) D 60) B 61) B 62) A 63) A 64) B 65) B 66) D 67) C 68) A 69) C 70) A 71) D 72) D 73) C 74) D 75) A 76) D 77) B

78) A 79) B 80) A 81) A 82) D

Chapter 7:__________ 1) The purpose of the gross pay and year-to-date net pay columns in the payroll register is to

verify the accurate disbursal of payroll amounts. ⊚ true ⊚ false

2) The payroll register layout is different for each company. ⊚ true ⊚ false

3) The information in the payroll register comes from the Employee Earnings Records and the

General Journal. ⊚ true ⊚ false

4) The payroll register and employee earnings records form the link between accounting and the

human resources department. ⊚ true ⊚ false

5) Besides serving as a backup in case of a computer system failure or other data breach, the

employee earnings record contains the supporting data for periodic tax reports. ⊚ true ⊚ false

6) A credit always increases the balance of an account. ⊚ true ⊚ false

7) The General Ledger organizes a firm’s financial transactions using chronological order as the

primary sorting method. ⊚ true ⊚ false

8) In the General Journal, the credit column always reflects the balance of the account. ⊚ true ⊚ false

9) Two complete payroll-related General Journal entries are recorded each pay period: One for

the employees' payroll, one for the employer's share of the taxes. ⊚ true ⊚ false

10) Payroll accruals reflect the amount of payroll earned but not paid at the end of the financial

period. ⊚ true ⊚ false

11) Which of the following best describes the purpose of the employee earnings record? A) It is a list of all persons and companies that the company pays money during a period. B) It is a report that becomes published with other financial reports. C) It is a worksheet that accountants use to ensure payroll accuracy. D) It is an individual register maintained for each employee, listing of all the payroll

information.

12) A column used in the payroll register to compute net pay may include which of the

following? A) Social security number B) Employee address C) Employee signature D) Garnishments

13) Which column might an employer include in the payroll register to facilitate the employer-

share payroll tax General Journal entries? A) Worker's Compensation B) FUTA C) Employee Federal Income tax D) Employer's Federal Income tax

14) Which of the following columns of the payroll register would be part of a general journal

entry? A) B) C) D)

Check number Total overtime earnings Earnings subject to FICA tax Health insurance payable

15) Why is it important for a firm to use both a payroll register and an employee earnings record? A) It adds complexity to the personnel recordkeeping. B) The reports are identical and provide necessary redundancy. C) It facilitates accuracy in employee personnel records. D) It allows payroll employees to create “ghost” employees.

16) How do year-to-date totals in the employee earnings register assist payroll accountants? A) The totals facilitate accuracy in payroll check disbursement. B) The totals ensure accurate tax withholding and reporting. C) The totals maintain employee trust with company computations. D) The totals are important for employee work scheduling.

17) To which item is information from the payroll register not transferred? A) Employee earnings record B) General Journal C) Labor reports D) Company website

18) Which of the following reporting does not involve communication among a company’s

departments? A) Form 941 B) Payroll register C) Employee earnings record D) Labor reports

19) How does a payroll accountant keep track of employee pay disbursals? A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record

20) Which of the following is true about the fundamental accounting equation? A) It can be reported in only one format. B) It is commonly expressed as Assets = Liabilities + Owners' Equity. C) One side of the equation must equal zero. D) It must be expressed as Assets + Liabilities = Owners' Equity.

21) Which of the following is an example of a liability account? A) Revenue B) Salaries Payable C) Cash D) Medicare Tax Expense

22) Which of the following is an example of an expense account? A) Cash B) Owners' Capital C) Salaries Payable D) Wages and Salaries Expense

23) Which of the following is an example of an asset account? A) Cash B) Payroll Taxes Expense C) Salaries and Wages Expense D) FUTA Payable

24) Which of the following is an example of an asset account? A) Accounts Receivable B) Revenue C) Liability D) Owners' Capital

25) Which of these accounts is increased by a credit? A) Owners' capital B) Drawing C) Assets D) Expenses

26) In which order are transactions listed in the General Journal? A) By explanation B) By debit or credit C) By account then by date D) By title

27) In the following General Journal transaction, what type of account is the credit? Date Account Title Account Debit Credit Number June 1

Cash Q. Miller, Capital

A) B) C) D)

101 301

$ 250,000 $ 250,000

Asset Liability Expense Owners’ Equity

28) What is the term for including information to the General Journal? A) Journaling B) Ledgering C) Posting D) Transcribing

29) On July 1, 20XX, Jeri Grohl invested $460,000 to open her company. What is the General

Journal entry to record this transaction? A) Debit J. Grohl Capital, $460,000; Credit Cash, $460,000 B) Debit Revenue, $460,000; Credit Cash, $460,000 C) Debit Cash, $460,000; Credit Revenue, $460,000 D) Debit Cash, $460,000; Credit J. Grohl Capital, $460,000

30) On July 1, 20XX, Jeri Grohl invested $450,000 to open her company. What is the General

Journal entry to record this transaction? A) Debit J. Grohl Capital, $450,000; Credit Cash, $450,000 B) Debit Revenue, $450,000; Credit Cash, $450,000 C) Debit Cash, $450,000; Credit Revenue, $450,000 D) Debit Cash, $450,000; Credit J. Grohl Capital, $450,000

31) Ondria Industries has the following payroll information for the semimonthly pay period

ending April 30, 20XX: Gross pay Federal withholding tax Social Security tax Medicare tax 401(k) contributions Health Insurance Garnishment Net pay

$ 315,028.69 $ 31,570.00 $ 18,921.08 $ 4,425.09 $ 12,601.15 $ 9,850.00 $ 2,135.00 $ 235,526.37

Which items would be debited in the General Journal entry to record the employees' share of the payroll? A) 401(k) contributions, $12,601.15 B) Garnishment, $2,135.00 C) Gross pay, $315,028.69 D) Net pay, $235,526.37

32) Eden Enterprises has the following incomplete General Journal entry for the most recent pay

date: Date

Account Title

August Wages and salaries 25 expense Federal withholding tax payable Social Security tax payable Medicare tax payable 401(k) contributions payable Health Insurance payable Savings bonds payable Wages and salaries payable August Wages and salaries 25 payable Cash

Account Debit Number 522 $ 303,384.00

Credit

220

$ 51,575.28

221

18,281.86

222 223

?question mark 13,422.97

224

8,515.34

227

1,881.00

226

205,431.95

226 101

205,431.95 205,431.95

What is the amount of Medicare tax payable for the pay date, assuming that the health insurance is qualified under Section 125? A) $2,290.75 B) $4,275.60 C) $13,422.97 D) $9,369.80

33) Eden Enterprises has the following incomplete General Journal entry for the most recent pay

date: Date

Account Title

August 25

Wages and salaries expense Federal withholding tax payable Social Security tax payable Medicare tax payable 401(k) contributions payable Health Insurance payable Savings bonds payable

August 25

Wages and salaries payable Wages and salaries payable Cash

Account Number 522

Debit

Credit

$ 298,384.00

220

$ 50,725.28

221

17,980.56

222

223

12,576.05

224

8,375.00

227

1,850.00

226

202,671.98

226 101

202,671.98 202,671.98

What is the amount of Medicare tax payable for the pay date, assuming that the health insurance is qualified under Section 125? A) $2,253.00 B) $4,205.13 C) $12,576.05 D) $9,215.38

34) In the following payroll transaction, what is the amount of the gross pay? Date Account Title Account Debit Number July Wages and salaries 522 ?question 21 expense mark Federal withholding tax 220 payable Social Security tax 221 payable Medicare tax payable 222 401(k) contributions payable Health Insurance payable State Income tax payable Wages and salaries payable A) B) C) D)

Credit

$ 405,422.63 147,340.77 34,458.73

223

95,393.56

224

8,445.00

227

119,241.95

226

1,574,536.36

$405,422.63 $2,384,839.00 $95,393.56 $1,574,536.36

35) In the following payroll transaction, what is the amount of the gross pay? Date Account Title Account Debit Number July 21 Wages and salaries expense 522 ?

A) B) C) D)

Credit

Federal withholding tax payable Social Security tax payable Medicare tax payable

220

$ 399,472.63

221

145,170.77

222

33,951.23

401(k) contributions payable Health Insurance payable

223

93,993.56

224

8,375.00

State Income tax payable

227

117,491.95

Wages and salaries payable

226

1,551,383.86

$399,472.63 $2,349,839.00 $93,993.56 $1,551,383.86

36) The following data is for the March 17 pay date for Lindoerfer Incorporated: Date Account Title Account Debit Credit Number March 17 Wages and salaries 522 $ 14,187.00 expense Federal withholding tax 220 $ 2,411.79 payable Social Security tax 221 ?question payable mark Medicare tax payable 222 190.76 401(k) contributions payable Health Insurance payable

223

496.55

224

1,031.39

State Income tax payable

227

354.68

226

8,886.19

Wages and salaries payable March 17 Wages and salaries payable Cash

226 101

8,886.19 8,886.19

Which of the following represents the missing Social Security tax, assuming that the health insurance is qualified under Section 125? A) Social Security tax, $815.65 B) Social Security tax, $879.59 C) Social Security tax, $785.24 D) Social Security tax, $863.45

37) The following data is for the March 17 pay date for Lindoerfer Incorporated: Date Account Title Account Debit Credit Number March 17 Wages and salaries 522 $ 12,987.00 expense Federal withholding tax 220 $ 2,207.79 payable Social Security tax 221 ? payable Medicare tax payable 222 174.62 401(k) contributions payable Health Insurance payable State Income tax payable Wages and salaries payable March 17 Wages and salaries payable Cash

223

454.55

224

944.15

227

324.68

226

8,134.55

226 101

8,134.55 8,134.55

Which of the following represents the missing Social Security tax, assuming that the health insurance is qualified under Section 125? A) Social Security tax, $746.66 B) Social Security tax, $805.19 C) Social Security tax, $718.47 D) Social Security tax, $792.35

38) Matte Media Networks has the following payroll data for its July 7 pay date: Date Account Title Account Debit Credit Number July 7 Wages and salaries 522 $ 3,190,038.50 expense Federal withholding 220 $ ?question tax payable mark Social Security tax 221 148,921.39 payable Medicare tax payable 222 34,828.39 401(k) contributions payable Health Insurance payable Union Dues payable Wages and salaries payable July 7 Wages and salaries payable Cash

223

127,601.54

224

788,080.66

227

31,900.39

226

1,736,939.33

226

1,736,939.33

101

1,736,939.33

How much Federal withholding tax was deducted from employees' pay? A) $317,498.81 B) $321,766.81 C) $332,070.81 D) $327,170.81

39) Matte Media Networks has the following payroll data for its July 7 pay date: Date Account Title Account Debit Credit Number July 7 Wages and salaries 522 $ 3,175,038.50 expense Federal withholding 220 $ ? tax payable Social Security tax 221 148,221.14 payable Medicare tax payable 222 34,664.62 401(k) contributions payable Health Insurance payable Union Dues payable Wages and salaries payable July 7 Wages and salaries payable Cash

223

127,001.54

224

784,375.00

227

31,750.39

226

1,728,772.20

226

1,728,772.20

101

1,728,772.20

How much Federal withholding tax was deducted from employees' pay? A) $315,986.00 B) $320,254.00 C) $330,558.00 D) $325,658.00

40) Foster Air Services has the following payroll data for its July 7 pay date: Date Account Title Account Debit Number July 7 Wages and salaries expense 522 $ 66,845.49

Credit

Federal withholding tax payable Social Security tax payable Medicare tax payable

220

$ 7,267.49

221

3,872.52

222

905.67

401(k) contributions payable Health Insurance payable

223

2,673.82

224

4,385.45

Garnishments payable

227

1,034.25

Wages and salaries payable

226

?question mark

How much is the net pay? A) $47,740.54 B) $46,706.29 C) $44,032.47 D) $45,800.62

41) Foster Air Services has the following payroll data for its July 7 pay date: Date Account Title Account Debit Number July 7 Wages and salaries expense 522 $ 57,845.49

Credit

Federal withholding tax payable Social Security tax payable Medicare tax payable

220

$ 6,289.00

221

3,351.13

222

783.73

401(k) contributions payable Health Insurance payable

223

2,313.82

224

3,795.00

Garnishments payable

227

895.00

Wages and salaries payable

226

How much is the net pay? A) $41,312.81 B) $40,417.81 C) $38,103.99 D) $39,634.08

42) Alba Tours had the following payroll data for its May 12 pay date: Date Account Title Account Debit Number May 12 Wages and salaries expense 522 $ 19,327.54

May 12

Credit

Federal withholding tax payable Social Security tax payable Medicare tax payable

220

$ 3,023.96

221

1,119.49

222

261.82

401(k) contributions payable Health Insurance payable

223

773.10

224

1,271.28

Wages and salaries payable Wages and salaries payable

226

12,877.90

Cash

226 101

12,877.90 12,877.90

When the firm remits the health insurance for this pay period, what is the correct General Journal entry? A) Debit Cash $2,542.55; Credit Health Insurance Payable $2,542.55 B) Debit Health Insurance Payable $1,271.28; Credit Cash $1,271.28 C) Debit Cash $1,271.28; Credit Health Insurance Payable $1,271.28 D) Debit Health Insurance Payable $2,542.55; Credit Cash $2,542.55

43) Alba Tours had the following payroll data for its May 12 pay date: Date Account Title Account Debit Number May 12 Wages and salaries 522 $ 18,327.54 expense Federal withholding tax 220 payable Social Security tax 221 payable Medicare tax payable 222

May 12

401(k) contributions payable Health Insurance payable Wages and salaries payable Wages and salaries payable Cash

Credit

$ 2,867.50 1,090.86 255.12

223

733.10

224

1,205.50

226

12,175.46

226 101

12,175.46 12,175.46

When the firm remits the health insurance for this pay period, what is the correct General Journal entry? A) Debit Cash $2,411.00; Credit Health Insurance Payable $2,411.00 B) Debit Health Insurance Payable $1,205.50; Credit Cash $1,205.50 C) Debit Cash $1,205.50; Credit Health Insurance Payable $1,205.50 D) Debit Health Insurance Payable $2,411.00; Credit Cash $2,411.00

44) Gander Publications had the following payroll data for its May 12 pay date: Date Account Title Account Debit Number May 12 Wages and salaries 522 $ 26,327.54 expense Federal withholding 220 tax payable Social Security tax 221 payable Medicare tax payable 222

May 12

401(k) contributions payable Charitable contributions payable Wages and salaries payable Wages and salaries payable Cash

Credit

$ 4,119.17 1,524.94 356.64

223

1,053.10

224

1,731.70

226

17,541.99

226 101

17,541.99 17,541.99

If the firm matches employee 401(k) contributions at 50 percent of the employee’s contribution, what is the amount to be remitted for this pay date? A) Debit Cash $1,731.70; Credit 401(k) Contributions Payable $1,731.70 B) Debit Cash $356.64; Credit 401(k) Contributions Payable $356.64 C) Debit 401(k) Contributions Payable $1,053.10; Credit Cash $1,053.10 D) Debit 401(k) Contributions Payable $1,579.65; Credit Cash $1,579.65

45) Gander Publications had the following payroll data for its May 12 pay date: Date Account Title Account Debit Credit Number May 12 Wages and salaries 522 $ 18,327.54 expense Federal withholding tax 220 $ 2,867.50 payable Social Security tax 221 1,090.86 payable Medicare tax payable 222 255.12

May 12

401(k) contributions payable Charitable contributions payable Wages and salaries payable Wages and salaries payable Cash

223

733.10

224

1,205.50

226

12,175.46

226

12,175.46

101

12,175.46

If the firm matches employee 401(k) contributions at 50 percent of the employees’ contribution, what is the amount to be remitted for this pay date? A) Debit Cash $1,205.50; Credit 401(k) Contributions Payable $1,205.50 B) Debit Cash $255.12; Credit 401(k) Contributions Payable $255.12 C) Debit 401(k) Contributions Payable $733.10; Credit Cash $733.10 D) Debit 401(k) Contributions Payable $1,099.65; Credit Cash $1,099.65

46) When a firm has wages earned but not yet paid at the end of a financial reporting period,

what must it do to recognize the liabilities and expenses? A) It must credit the expense accounts for the paid payroll amounts. B) It must pay its employees for the wages earned as of that date. C) It must create an adjusting entry to recognize the payroll accrual. D) It must wait until the next financial period to record the payroll data.

47) If a firm accrues the payroll due but not paid at the end of a financial period, what should the

payroll accountant do on the first day of the next financial period? A) It should create a reminder about the accrual to ensure accuracy of computations on the next pay date. B) It should disburse the accrued pay to the employees. C) It should create a reversing entry in the General Journal. D) It should make a note to create the reversing entry at the end of the next financial period.

48) What is the rule about adjusting and reversing entries for payroll accruals? A) Adjustments must always reflect asset changes. B) Reversing entries are required by the IRS. C) Adjusting entries are not required. D) Reversing entries are made at the company’s discretion.

49) The payroll accountant for Moore Industries recorded the following employer's share payroll

tax general journal entry for the February 10 pay date: Date Account Title February 10 Payroll Taxes Expense

Debit $ 22,633.42

Credit

Social Security tax payable Medicare tax payable

10,280.38

FUTA tax payable

?question mark 8,953.88

SUTA tax payable

2,404.28

What is the amount of the FUTA tax payable? A) $994.88 B) $722.93 C) $826.26 D) $920.29

50) The payroll accountant for Moore Industries recorded the following employer's share payroll

tax general journal entry for the February 10 pay date: Date Account Title February 10 Payroll Taxes Expense Social Security tax payable Medicare tax payable

Debit $ 22,503.74

Credit

10,221.48 2,390.51

FUTA tax payable

SUTA tax payable

8,902.58

What is the amount of the FUTA tax payable? A) $989.18 B) $717.23 C) $820.56 D) $914.59

51) Cormier’s Books has the following data in its Federal Income Tax payable General Ledger

account: Federal Income Tax payable DATE DESCRIPTION POST REFERENCE February 28 March 15

Account Number 221 DEBIT CREDIT BALANCE DEBIT CREDIT $ $ 7,192.82 3,588.22

Cormier’s Books is a monthly schedule depositor. What entry should appear in the General Ledger to reflect the tax remittance on March 15? A) Credit $7,192.82 B) Debit $7,192.82 C) Credit $3,588.22 D) Debit $3,588.22

52) Cormier’s Books has the following data in its Federal Income Tax payable General Ledger

account: Federal Income Tax payable DATE DESCRIPTION POST REFERENCE February 28 March 15

Account Number 221 DEBIT CREDIT BALANCE DEBIT CREDIT $ $ 3,468.22 6,952.82

Cormier’s Books is a monthly schedule depositor. What entry should appear in the General Ledger to reflect the tax remittance on March 15? A) Credit $6,952.82 B) Debit $6,952.82 C) Credit $3,468.22 D) Debit $3,648.22

53) Cormier’s Books has the following data in its federal Income Tax payable General Ledger

account: Federal Income Tax payable DATE DESCRIPTION POST REFERENCE February 28 March 15

Account Number 221 DEBIT CREDIT BALANCE DEBIT CREDIT $ $ 3,468.22 6,952.82

For the entry on February 28, what does the J4 signify? A) It is the fourth entry in the General Journal on that date. B) The transaction appears on page four of the General Journal. C) It is the fourth repetition of the same entry. D) The account appears fourth in the list of liability accounts.

54) As of the June 9 pay date, the General Ledger account for Tanner’s Electric has a balance of

$19,250 in its Union Dues Payable account. A credit of $18,250 is recorded on the June 23 pay date. What is the balance in the account? A) Debit $19,250 B) Debit $37,500 C) Credit $37,500 D) Credit $0

55) As of the June 9 pay date, the General Ledger account for Tanner’s Electric has a balance of

$18,250 in its Union Dues Payable account. A credit of $18,250 is recorded on the June 23 pay date. What is the balance in the account? A) Debit $18,250 B) Debit $36,500 C) Credit $36,500 D) Credit $0

56) On October 15, Cross Eyeglasses had a balance of $4,560.00 in its Social Security tax

payable account and $1,196.69 in its Medicare Tax Payable account. It posted credit entries of $4,560.00 to Social Security tax payable and $1,196.69 to Medicare tax payable on its October 31 pay date. If Cross Eyeglasses is a monthly schedule depositor, what entry should appear on November 15 for the remittance of the month's FICA taxes? A) Credit $5,756.69 B) Debit $11,513.38 C) Credit $1,196.69 D) Debit $4,560.00

57) On October 15, Cross Eyeglasses had a balance of $4,390.00 in its Social Security tax

payable account and $1,026.69 in its Medicare Tax Payable account. It posted credit entries of $4,390.00 to Social Security tax payable and $1,026.69 to Medicare tax payable on its October 31 pay date. If Cross Eyeglasses is a monthly schedule depositor, what entry should appear on November 15 for the remittance of the month's FICA taxes? A) Credit $5,416.69 B) Debit $10,833.38 C) Credit $1,026.69 D) Debit $4,390.00

58) Super Dreams Mattresses has the following data in its Federal withholding tax payable

General Ledger account: ACCOUNT DATE

Federal withholding tax payable DESCRIPTION POST REFERENCE DEBIT

CREDIT

June 15

J23

$ 4,985

June 30

J27

5,385

Account Number 220 BALANCE DEBIT CREDIT $ 4,985

What is the balance of the account as of June 30? A) Credit $10,370 B) Credit $0 C) Credit $5,385 D) Credit $400

59) Super Dreams Mattresses has the following data in its Federal withholding tax payable

General Ledger account: ACCOUNT DATE

Federal withholding tax payable DESCRIPTION

POST REFERENCE

DEBIT

CREDIT

June 15

J23

$ 4,975

June 30

J27

5,375

Account Number 220 BALANCE DEBIT CREDIT $ 4,975

What is the balance of the account as of June 30? A) Credit $10,350 B) Credit $0 C) Credit $5,375 D) Credit $400

60) DT Travel has a credit balance of $32,285.27 in its Wages and Salaries Payable General

Ledger account as of August 11. If the pay date is August 15, what transaction should appear in the Wages and Salaries Payable General Ledger account on August 15? A) Debit $32,285.27 B) Credit $32,285.27 C) Debit $64,570.54 D) Credit $64,570.54

61) DT Travel has a credit balance of $31,485.27 in its Wages and Salaries Payable General

Ledger account as of August 11. If the pay date is August 15, what transaction should appear in the Wages and Salaries Payable General Ledger account on August 15? A) Debit $31,485.27 B) Credit $31,485.27 C) Debit $62,970.54 D) Credit $62,970.54

62) Before remittance, what effects do payroll tax entries have on a company’s accounts? A) B) C) D)

They increase the firm's assets. They increase the firm's liabilities. They increase the owners' equity. They increase the firm's expenses.

63) In general, how are the expenses associated with the payroll accountant's labor allocated in a

firm? A) B) C) D)

They are allocated as part of the firm's overhead. They are allocated to one department at random. They are billed equally to all customers. They are billed equally to each department manager.

64) Which of the following financial report(s) does not reflect the effects of debit and credit

General Journal entries used in payroll accounting? A) Income Statement B) Trial Balance C) Balance Sheet D) Labor Distribution Report

65) Which of the following payroll items is reported on the balance sheet? A) Federal withholding tax payable B) Health insurance expense C) Salaries and wages expense D) Payroll taxes expense

66) Which of the following payroll items is reported on the Income Statement? A) Health insurance payable B) Salaries and wages expense C) Federal withholding tax payable D) Payroll taxes payable

67) What is true about the trial balance? A) It contains a detailed listing of every transaction during a period. B) It contains only assets and expenses. C) Owner’s equity must equal liabilities. D) The total of the debits must equal the total of the credits.

68) What is the primary purpose of a labor report? A) It depicts the ideal distribution of labor in a firm. B) It reports where labor is used in a firm. C) It communicates which departments should be eliminated. D) It is a report for all stakeholders of a firm.

69) What does the term "billable time" mean as it pertains to payroll accounting? A) It is non-employee labor that may be billed to customers. B) It is employee labor that does not pertain to labor on customer jobs. C) It is employee labor that for which the company may bill customers. D) It is non-traceable labor that a company must absorb as overhead.

70) What is not an appropriate use of a firm’s labor trend reports? A) B) C) D)

It allows managers to determine the effect of employee labor on departmental profits. It allows managers to predict future labor costs. It is a report designed for external stakeholders. It highlights issues and results of seasonal labor.

71) In what order are accounts presented on the trial balance? A) By grouping as debits and credits B) By the order in the chart of accounts C) By dollar amount D) By alphabetical order

72) How do wage accruals appear on the balance sheet? A) As an increase to expenses B) As a decrease to assets C) As increases to revenue D) As increases to liabilities

73) Which financial report reflects the account of unremitted employee contributions to

retirement accounts? A) The statement of owners' equity B) The income statement C) The balance sheet D) The labor report

74) Which report contains paid employee wages and salaries for a period? A) The income statement B) The statement of owners' equity C) The balance sheet D) The labor report

75) Why do increase in company profitability often increase in proportion to payroll expenses? A) Because payroll represents the activity of the business. The higher profitability often

reflects an increase in labor expenses. B) Because payroll represents an asset and an income of the business. The higher payroll incomes are, the higher the profitability will be. C) Because payroll represents a liability and an expense of the business. The lower payroll expenses are, the higher the profitability will be. D) Because payroll represents an asset and an income of the business. The lower the payroll expenses are, the higher the profitability will be.

76) How does a debit balance in the payroll taxes expense account affect a firm's income

statement? A) A debit balance will increase the expenses of the firm's income statement. This will decrease the total expenses of the firm and increase the net income of the firm. B) A debit balance will decrease the expenses of the firm's income statement. This will increase the total incomes of the firm and decrease the net income of the firm. C) A debit balance will increase the expenses of the firm's income statement. This will increase the total expenses of the firm and decrease the net income of the firm. D) A debit balance will increase the income of the firm's income statement. This will increase the total expenses of the firm and increase the net income of the firm.

77) The employee earnings record contains _________. A) the employee's name, social security number, and address B) the name of the firm and the payroll accountant C) the beginning and ending dates of the pay period D) the total gross pay, deductions, and net pay during the period

78) Besides payroll information, the employee earnings record contains _________. A) information about the firm's liabilities B) marital status and dependent information C) proof of payroll disbursement D) the firm's payroll checking account information

79) The _________ is the document that contains employees’ regular pay, deductions, and pay

period disbursements. A) Payroll register B) Form W-4 C) Employee earnings record D) Personnel file

80) A(n) _________ is the classification for amounts owed to other parties for acquisition of

assets. A) B) C) D)

Liability Asset Revenue Equity

81) The purpose of the _________ is to record all the financial transactions of a firm. A) General Journal B) Trial Balance C) Payroll Register D) Employee’s Earnings Record

82) When journalizing the employees' pay accrual, the _________ is/are among the debit(s), and

the _________ is/are among the credits. A) net pay; gross pay B) payroll tax liabilities; gross pay C) gross pay; payroll tax liabilities D) cash account; net pay

83) At the end of the financial period, the payroll accountant records the employees’ pay that is

earned but not yet paid as a(n) _________; in the next financial period, this entry is _________. A) Amount; deleted B) Accrual; reversed C) Total; carried forward D) Reversal; accrued

84) When a payroll accountant transfers information from the General Journal to the General

Ledger, the action is called _________. A) Annotating B) Accruing C) Posting D) Computing

85) It is important that the payroll accountant remember their _________ duty, according to

Current Tax Payment Act of 1943. A) Company B) Accounting C) Legal D) Fiduciary

86) The _________ reflects all paid payroll liabilities at any point in the financial period. A) Income statement B) Statement of Owners' Equity C) Payroll register D) Balance sheet

87) The _________ report assists managers with allocation of labor to company departments. A) Labor usage B) Billable hours C) Overtime D) Labor trend

88) The _________ reports highlight payroll expenses related to customer projects. A) Trend B) Billable vs. nonbillable C) Labor usage D) Overtime

89) The _________ reports highlight current staffing expenses and allows managers to plan for

future needs. A) billable vs. nonbillable B) trend C) overtime D) labor usage

Answer Key Test name: Chapter 7 1) FALSE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) FALSE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) D 12) D 13) B 14) D 15) C 16) B 17) B 18) A 19) C 20) B 21) B 22) D 23) A 24) A 25) A 26) C 27) D 28) A 29) D 30) D 31) C 32) B 33) B 34) B 35) B 36) A 37) A

38) B 39) B 40) B 41) B 42) B 43) B 44) D 45) D 46) C 47) C 48) D 49) A 50) A 51) B 52) B 53) B 54) C 55) C 56) B 57) B 58) A 59) A 60) A 61) A 62) B 63) A 64) D 65) A 66) B 67) D 68) B 69) A 70) C 71) B 72) D 73) C 74) A 75) A 76) C 77) A

78) A 79) A 80) A 81) A 82) C 83) B 84) C 85) D 86) A 87) A 88) B 89) B