Payroll Accounting 2023 9th Edition Jeanette M. Landin, Paulette Schirmer - Solutions

How does the percentage method work using Form W-4 information? W-4 Department of the Treasury Internal Revenue Service Form Step 1: Enter Personal Information Step 3: Claim Dependents (a) First name and middle initial Step 4 (optional): Other Adjustments Employee's Withholding Certificate ►
What are two examples of garnishments?
How does cryptocurrency function as a payroll payment method?
Campbell Whitman works for Schaum, Whitney, & Matte, LLP, in Washington, DC, which pays employees on a biweekly basis. Campbell’s annual salary is $160,000. The company began operations in 2022. Calculate the following: Pay Period End September 24 December 31 Prior YTD Earnings Social
Of the following taxes, which one(s) is/are examples of mandatory and voluntary employee deductions?a. Social Security taxb. Employee federal income taxc. FUTAd. 401(k) contributions
Burton Book Memorabilia is a semiweekly depositor. Following a special project’s success, Keller Burton, the owner, pays each of the 250 employees a $2,000 bonus on August 12, 2022. Assume a 22 percent income tax rate. When will Keller need to deposit the payroll taxes?
In Shavertown, Pennsylvania, the Wilkes-Barre Bookkeeping LLC owner was indicted for embezzling over $376,225 of his clients’ payroll tax remittances between 2010 and 2016 and for lying to clients about his actions. Additionally, he embezzled nearly $70,000 from a nonprofit for which he was the
What are an advantage and a disadvantage of direct deposit?
At what income level do many employees contribute an additional percentage to their Medicare tax deduction?a. $128,400b. $150,000c. $175,000d. $200,000
You are the new accountant for a start-up company, Peaceful Skunk Builders. The company has cross-country drivers, warehouse personnel, and office staff at the main location. The company is looking at options that allow its employees flexibility with receiving their pay. You have been asked to
You are preparing a training session for your colleagues about payroll check fraud. Which of the following may be indicators of check fraud?a. Changes in font type between company address and employee name.b. Company logo on the face of the check.c. The check number is missing from the check.d.
You have been retained as a consultant for Marionet Industries. The company has had difficulty with its cross-country drivers receiving their pay in a timely manner because they are often away from their home banks. The company is looking at options that allow its employees flexibility with
Which of the following is/are examples of fringe benefits?a. Education assistance (up to $5,250 annually)b. Dependent care assistance (up to $5,000 annually)c. Vacation packagesd. Retirement planning services
Shiloh is an employee at Jankoski Cycles and earns a salary of $37,765 annually, paid semimonthly. Shiloh contributes to the following fringe benefits and other deductions:• Medical insurance: $220 per pay period• Dental insurance: $15 per pay period• 401(k): 6 percent of gross pay•
How is disposable income computed?a. Gross pay less pre-tax deductionsb. Gross pay less pre-tax deductions and income taxesc. Gross pay less mandatory deductionsd. Gross pay less Social Security and Medicare taxes
Hayden is an employee at Finesong Jewelry and earns a salary of $38,850 per year, is paid biweekly, and has a credit card garnishment. Assuming that Hayden’s disposable income is 85 percent of the gross pay, what is the maximum amount per period that may be deducted for the garnishment?
Jamie is the payroll accountant of Central Communications who is researching retirement plan options for the employer. Central Communications has 135 employees and is a for-profit company. Which of the following plans should Jamie consider?a. IRAb. 457c. 403(b)d. 401(k)
River, president of Miller Custom Coffee Roasters, drives a 2021 Mercedes E300 with a fair market value of $57,500. The lease value is $14,750. The odometer started at 655 and was reported at 32,855 at the end of the year. The car was available all of 2022. River reported driving 32,200 miles
Casey is the payroll accountant for Glowing Yoga and is preparing a Section 125 cafeteria plan presentation. Which of the following items may qualify for inclusion in a cafeteria plan?a. Health benefitsb. Adoption assistancec. Childcare expensesd. Education assistance
Shiloh is a sales representative for American Silk Mills who has a company car to visit customer sites. Shiloh drove 25,500 miles during 2022, of which 15 percent was reported as personal miles. Using the centsper- mile rule, what is the valuation of this benefit for 2022?
Grey is an employee of Convergent Technologies whose job is strictly based in the company’s office. The employer has authorized the use of a company vehicle for commuting purposes as necessary. Which of the general valuation rules would be appropriate to evaluate the value of this fringe
Jacinta is an employee of Wilson In-Home Healthcare. Jacinta has a company vehicle to drive to customer sites. Which of the general valuation rules would be appropriate to compute the value of the asset for any personal use?a. Cents-per-mile ruleb. Commuting rulec. Unsafe conditions ruled. Lease
What are two examples of pre-tax deductions?
Can employers charge employees for their uniforms? Check out the U.S. Department of Labor video at https://www.youtube.com/watch?v=PoZCux0rTN8&feature=youtu.be
Lane is an employee in the office of Salvaggio & Wheelers, Attorneys at Law, who received the following benefits during 2022:• Medical insurance: $250 per month• Commuter pass: $500 per month• Employer-paid membership to Anytime Gym: $75 per year• Dependent care assistance: $3,600 per
Marlow is an employee of All-Adventure Tours. All-Adventure Tours offers tuition reimbursement as a fringe benefit. What maximum amount may be excluded from Marlow’s taxes as a fringe benefit?a. $4,000b. $4,750c. $5,000d. $5,250
Jona is an employee at Radiance Senior Living and received the following benefits from the employer during 2022 on the company’s location for company purposes:• Personal protective equipment: $50 per month• Employer-provided cell phone: $50 per month• Meals: $100 per monthWhat amount of
Velshi is an employee who receives educational assistance from their employer in the amount of $15,000 per year. How is this amount treated for tax purposes?a. None of it is taxableb. All of it is taxablec. $5,250 is taxabled. $9,750 is taxable
Windsor is employed at Rockstar Music. Windsor is receiving education assistance of $5,750 per year from Rockstar Music to complete a bachelor’s degree from an accredited college. How much of that assistance is taxable?
What is the annual maximum amount that an employee may contribute to a flexible savings arrangement before it becomes taxable income?a. $2,650b. $2,750c. $2,850d. $2,950
Keren is an employee of Dimensionworks Designs in New Mexico who received the following achievement awards from her employer during 2022:• Best safety plan, Santa Fe County: $1,200• Top emergency plan layout, New Mexico: $1,600• Ten-year employee award: $750The achievement awards are eligible
What is a significant difference between flexible spending arrangements (FSAs) and health savings accounts (HSAs)?a. Only FSAs may be included as part of a cafeteria plan.b. HSAs may accompany any type of employer-sponsored health insurance.c. Amounts contributed to HSAs may remain in the account
What are the two reports associated with fringe benefits?
Rowan’s employer offers the option to use the cents-per-mile rule instead of the leasevalue rule for 2022. Which method will yield the lower gross income for Rowan? (1) Automobile FMV $0 to 999... 1,000 to 1,999.. 2,000 to 2,999.. 3,000 to 3,999... 4,000 to 4,999... 5,000 to 5,999.. 6,000 to
Go to www.benefitspro.com and search for benefits-related podcasts. Once you have listened to one or more podcasts, describe the insights you gained from the information presented?
Tate is a manager at Complex Ventures, Inc. Tate contributes $2,750 annually to an FSA and has medical insurance with a $500 monthly premium. Tate earns a salary of $72,200 and is paid biweekly. What is the taxable income per period?
Which of the following is a co-requisite of a health savings account (HSA)?a. No employer-provided insuranceb. A high deductible health planc. Multiple health insurance plans held by the same employeed. A flexible spending arrangement
Addison is a graphic designer at a large marketing firm and earns $56,000 annually, paid biweekly. Addison contributes 5 percent of the gross pay to a qualified 401(k) plan on a pre-tax basis and has a pre-tax medical premium f $350. What is the taxable income per pay period?
Garrett is wondering what elements are in a qualified health plan. Which of the following would be included?a. Mental health benefitsb. Prescription drugsc. Pet insurance premiumsd. Preventive and wellness services
Using a site such as Google, Yahoo, or Safari, search for the term “fringe benefits.” Sites such as HR360 and Employee Benefit Adviser contain insights into fringe benefits and guidance about the tax treatment for benefits. Why do you think that fringe benefits are important enough to influence
Quinn is employed as a concierge at Strawberry Lodge, an upscale resort in the Adirondack Mountains. Quinn asks the payroll accountant which deductions from gross pay are considered voluntary fringe benefits. Where would you tell Quinn to look on the pay stub?
Taylor is an employee of New York Boutiques, Inc., and is a traveling salesperson who routinely meets with customers at their places of business. Which of the following fringe benefits would be appropriate for the employer to provide for Taylor to conduct business?a. Personal stylistb. Tuition
Emery is a computer programmer at Biosphere Communications. Emery has a garnishment for child support and would like to pay it personally, and not have it automatically withdrawn from the gross pay. What advice should you offer Emery?
Dev is a metalworker at Bartleby’s Metal Shop. Which of the following would likely be fringe benefits that the employer would provide because they would be needed as part of this job?a. Heat-resistant glovesb. On-site cafeteriac. Welding maskd. Personal accounting services
Health insurance is a rapidly changing and evolving field. Employers have many options and concerns to consider. Check out www.npr.org/sections/health-care/ to listen to podcasts about health insurance and employer issues. What issues do employers currently face?
Rowan M. is a sales employee of Carefree Pools and Spas, Inc. In 2022, he was issued a company car with a fair market value of $35,000 and drove a total of 22,000 miles; used the car for 2,000 miles for personal use; and the employer paid for fuel, charging Rowan 5.5 cents per mile. Under the
Robin is a new employee at Big Tech Computers and is debating whether to enroll in a POP with the opportunity for an FSA or an HDHP with an opportunity for an HSA. The POP premium is $550 per month and the annual deductible is $400. For the HDHP, the monthly premium is $175 and the annual
Parker is a salaried, nonexempt administrator for Forise Industries and is paid biweekly. The annual salary is $63,000 with a standard workweek of 40 hours. During the pay period ending February 4, 2022, Parker worked 8 hours of overtime. Parker is married filing jointly with two dependents under
Which of the following fringe benefits is exempt from federal income tax but subject to FICA tax?a. Moving expense reimbursementsb. Tuition reduction for undergraduate educationc. Adoption assistanced. Working condition benefits
Sargent is a new employee at Tet Torr Entertainment. The company has both a POP with the opportunity for an FSA or an HDHP with an opportunity for an HSA. The POP premium is $350 per month and the annual deductible is $500. For the HDHP, the monthly premium is $200 and the annual deductible is
Nigel is a waiter at Albicious Foods in South Carolina. Nigel is single with one other dependent and receives the standard tipped hourly wage. During the week ending October 22, 2022, 44 hours were worked, and Nigel received $210 in tips. Calculate the gross pay, assuming tips are included in the
Houda is a children’s photographer for Cool Cax Digital and would like advice about using an FSA for miscellaneous prescriptions and other medical expenses. What reason(s) would you give Houda for having an FSA account?a. The monthly amount is deducted on a pre-tax basis.b. The employee’s
How must tipped employees report the tips they receive each month?
What amount did the Final Rule stipulate as to the minimum wage for salaried workers?
Preethi is a salaried, nonexempt administrative assistant and is paid semimonthly. Preethi is married filing joint with five dependents under 17. Annual salary is $65,000 with a standard work week of 37.5 hours. During the pay period, 10 hours of overtime were worked. Compute the gross pay for the
What is one of the three methods for employees to receive retroactive pay?
What is comp time?
A 19-year-old accounting clerk with Quijen Accounting Solutions (there is not a state minimum wage) received $369.75 for the first biweekly pay covering 87 regular hours. Did the employer pay the clerk correctly? Explain.
Parker is the concierge at the Trans-Canada Resort in Michigan. Parker is single with one other dependent and receives the standard tipped hourly wage for the state. During the week ending June 4, Parker worked 40 hours and received $105 in tips. Compute Parker’s pay for the period.Does the
Ret is an employee earning a base salary of $27,200 plus an 8 percent commission on all sales. Ret is married filing joint with four dependents, three under 17 and one other. During the biweekly pay period ended June 17, Ret made $15,000 in sales. Complete the payroll register for the pay period.
Jude is a full-time student working in the library at Sioux City College in Sioux City, Iowa. What is the minimum hourly wage that Jude may receive?1. $7.25 per hour2. $6.50 per hour3. $6.16 per hour4. $5.44 per hour
Averill is 18 years of age, and a new employee in Hendersonville, Tennessee. What is the minimum hourly wage that may be received during the first 90 days of employment?1. $9.47 per hour2. $2.13 per hour3. $7.25 per hour4. $4.25 per hour
Each of the following workers is a piece-rate worker at Golden Boats in Connecticut. If the employees have a standard 40-hour workweek, what is their effective hourly wage? Based on the state’s minimum wage in Connecticut, calculate each employee’s minimum weekly pay. What is the difference the
Carranza, a nonexempt salesperson with Verent Enterprises, earns a base annual salary of $30,000 with a standard 40-hour workweek. In addition, a 3 percent commission on all sales during the pay period applies. During the weekly pay period ending August 26, Carranza closed $25,000 in sales and
Cax is an hourly employee, single with no dependents, and earns $16.25 per hour. During a biweekly pay period ending February 18, Cax worked 88.5 hours. Complete the payroll register with the period’s information assuming a 40-hour week. Name. Filing Hourly Status Rate Overtime Rate No.
A piece-rate employee receives $30 for each desktop computer assembled and has a standard 40-hour workweek. During the weekly pay period ending December 16, 48 computers were assembled during 44 hours, all of which are productive hours. What is the gross pay for this period?
Of the items in the following list, which one(s) should appear in a payroll register?1. Name2. Home address3. Shifts worked4. Hours worked
Shona, an outside sales representative for Marosh Communications, receives a 20 percent commission on all new marketing packages sold within the sales territory. During the week of April 8, there were $9,700 of new subscriptions sold during 40 hours of work.What is Shona’s gross pay?Are the wages
A shared employee for Tetra Computers works in both the programming and the research departments for the company and splits their time equally in both roles. In the programming department, the employee earns $20 per hour and $28 per hour in the research department. What is this pay rate if the
Beasley is a salaried nonexempt accounting clerk contracted to work 40 hours per week. How should overtime be determined, according to FLSA?1. Any hours worked in excess of 40 during a consecutive 7-day period2. Any hours worked in excess of 45 during a consecutive 7-day period3. Any hours worked
Terry, a single employee with two dependents under the age of 17, is paid $12 per hour and receives a commission on net sales. No commission is received until net sales exceed $150,000. Once the minimum net sales are reached, the 4 percent commission on sales applies. During the week of January 28,
According to the FLSA, what is the basis used to determine overtime worked for standard nonexempt workers?1. The 8 and 80 rule2. The excess over 40 hours during any pay period3. The excess over 40 hours in seven consecutive days4. The excess over 8 hours in a 24-hour period
Peta is married, filing joint with two other dependents, is paid $17.25 per hour, and receives commission on sales. No commission is paid out until sales exceed $60,000. Once the minimum sales have been reached, the 7 percent commission on sales applies. For the week ending June 10, there was 48
What are the two methods an employer may use to determine a tipped employee’s overtime compensation?1. Compute gross pay based on the minimum cash wage plus tips.2. Compute gross pay based on an average of the minimum cash wage and the maximum tip credit.3. Compute gross pay based on the minimum
Janel is a nurse at Central City Hospital and is paid $32.50 per hour for a 40-hour standard workweek. During the biweekly pay period from January 10–21, Janel worked a total of 87 hours. What is Janel’s gross pay?
The accounting clerk at Tenity Enterprises is paid $18.15 per hour. During a week’s pay period, the employee worked 39 hours and 41 minutes. Based on a hundredth-hour pay method, what is the gross pay for the period? (Round the final answer to two decimal places.)1. $726.002. $721.463. $716.934.
Iskander is the concierge at Hotel Amize and is a nonexempt employee earning $18 per hour plus a $250 biweekly bonus based on customer reviews. During the pay period of November 27–December 10, 85 hours were worked, and the entire bonus was earned. What is the gross pay for the pay period,
Cheryl completed designing 22 custom cakes on her 18-cake contract as an employee of Yuan Fox Wedding Planners. There is a bonus earned if the individual exceeds 145 percent of their piece-rate contract. How many cakes must Cheryl complete in the remainder of the week to receive the bonus?
Doree is a stocker at a factory outlet, paid hourly earning $12.45 per hour. During a one-week period, Dorree worked 39 hours and 19 minutes. How much would the gross pay be under the quarter-hour system? (Round your final answer to two decimal places.)1. $485.552. $488.663. $489.494. $491.78
The payroll accountant needs to compute net pay for the employees for Hay Industries. Place the following steps in the proper order.a. Compute income taxes.b. Subtract pre-tax deductions from gross pay.c. Compute Social Security and Medicare taxes.d. Subtract taxes and all other deductions from
Compute the net pay for Mehdi Gamal and Deion Green. Assume that they are paid biweekly, subject to federal income tax (use the wage-bracket method in Appendix C) and FICA taxes, and have no other deductions from their pay. Mehdi’s deduction, if he chooses to participate in the cafeteria plan, is
For the February 4, 2022, pay period, use the gross pay totals from the end of Chapter 3 to compute each employee’s net pay. Once you have computed the net pay (use the wage-bracket tables in Appendix C), state withholding tax for Vermont is computed at 3.35 percent of taxable wages (i.e., gross
The payroll accountant needs to compute net pay for the employees of Happy Crab Marketing. Place the following steps in the proper order after the determination of gross pay has been completed.a. Compute Social Security and Medicare tax withholdingb. Compute income tax withholding(s)c. Compute
How should employees complete their Form W-4 if they have multiple jobs or have a spouse who works? W-4 Department of the Treasury Internal Revenue Service Form Step 1: Enter Personal Information Step 3: Claim Dependents (a) First name and middle initial Step
Teton Tours in Evanston, Wyoming, has six employees who are paid on a biweekly basis. Calculate the net pay from the information provided for the July 16 pay date. Assume that all wages are subject to Social Security and Medicare taxes. Use the wage-bracket tables in Appendix C to determine the
For the Critical Thinking problems, use the following steps to compute the gross-up amount:1. Compute tax rate: The tax rate on bonuses is 22 percent. Social Security (6.2 percent) and Medicare taxes (1.45 percent) must be added to this rate. For bonuses, the total tax rate equals 22% + 6.2% +
The state of Kansas passed legislation that allowed employers to select their employee pay method. The legislation was known as the “paperless payroll law,” and many employers opted to give their employees paycards instead of cash, check, or direct deposit. This practice spread to many other
Did you know that you can use an online calculator to see how your voluntary deductions will affect your paycheck? Many different payroll calculators exist. Go to one or more of the following sites and use the payroll
Kit is reviewing benefits with you, the payroll accountant for Silly Lemon Films. Classify the following benefits as pre-tax or post-tax deductions and as taxable or tax-exempt for federal income tax. Benefit Medical insurance FSA AFLAC Graduate school tuition at $11,000 annually On-site
The owner of Padua Products wants to reward the employees for their work during the year and asked you to gross-up their bonuses so that they receive the full amount as net pay. What amount(s) should you consider when computing the grossed-up pay?a. Desired bonus amountb. Garnishmentsc. Mandated
Dallas is the payroll accountant at White Box Builders and is preparing an information package about voluntary and fringe benefits. Using the following list of fringe benefits, classify each benefit as pre-tax or post-tax and as taxable or tax-exempt for federal income taxes. Employee
The payroll accountant has received a court order for garnishment for an employee’s student loan payments. What must be considered in computing the garnishment?a. Year-to-date payb. Hourly wagec. Disposable incomed. Pay frequency
Jesse is the payroll accountant for Comptech Industries whose employer decided to use the special accounting rule for 2022. Which months may be included in the special accounting rule?
Which of the following are always post-tax deductions?a. Garnishmentsb. Qualified health insurancec. Charitable contributionsd. Retirement plan contributions
Teagan is the payroll accountant for Penn & Associates Investments. The company decided on December 15, 2022, that it would invoke the special accounting rule. By what date does Teagan need to notify affected employees that the rule is being used?
To which two months does the special accounting rule pertain?a. January and Februaryb. November and Decemberc. The last two months of the company’s fiscal yeard. December and January of the following year
What factors affect how much federal income tax is withheld from an employee’s pay using Form W-4? W-4 Department of the Treasury Internal Revenue Service Form Step 1: Enter Personal Information Step 3: Claim Dependents (a) First name and middle initial Step
How do post-tax deductions differ from pre-tax deductions?
Compute the net pay for Eve Khan and Marn Hart. Assume that they are paid a $2,500 salary biweekly, subject to federal income tax (use the wagebracket method) in Appendix C and FICA taxes, and have no other deductions from their pay. They have a state tax rate of 3 percent. If they choose to
What are the forms of identification that establish identity for the I-9 for employees over the age of 25?1. State-issued driver’s license2. U.S. passport3. School record4. Certified copy of the birth certificate PARTIVES MATILAND ALDAS ►START HERE: Read instructions carefully before completing

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Payroll Accounting 2023 9th Edition Jeanette M. Landin, Paulette Schirmer - Solutions

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