Questions and Answers of Payroll Accounting

Which of the following is true about fringe benefits?A. They represent additional cash paid directly to employees.B. They are only available for employees.C. They represent additional compensation
What are two examples of voluntary deductions?
Gabrielle Jackson is the payroll accountant of Choice Bakeries. She is researching retirement plan options for her employer. Choice Bakeries has 77 employees and is a for-profit company. Which of the
Which of the following describes the primary difference between a 401(k) and a 403(b) retirement plan?A. The 401(k) is a defined benefit only plan.B. The 403(b) is a defined contribution only plan.C.
Name four states that do not have an income tax for employees (Student answers may vary among the following list).
Cameron Levitt is the payroll accountant for Glowing Yoga. He is preparing a presentation about the Section 125 Cafeteria plans. Which of the following items may qualify for inclusion in a cafeteria
Larisa is an employee of Yellow Rose Products. She has come to you, the payroll accountant, for advice about her health insurance premiums, specifically if she should have them deducted pre-tax or
Joey Martel is an employee of Overclock Watches. His employer would like to give him a bonus and has asked you to gross it up to ensure that Joey receives the full amount of the desired award. Which
Daryl Simpson is the owner of Padua Products. During the holiday season, he wants to reward his employees for their work during the year, and he has asked you to gross up their bonuses so that they
How is Social Security tax computed? What is the maximum wage base?
Mandella, the payroll accountant, needs to compute net pay for the employees for Hay Industries. Place the following steps in the proper order.E. Determine gross payB. Subtract pre-tax deductions
When are wait time, travel time, and sleep time compensable?
Under what circumstances may an employee receive compensation for on-call time?
Colin is an 18-year-old worker in the receiving department of a company. On his first paycheck, he notices that he received $170.00 gross pay for 40 hours of work. Did his employer pay him correctly?
Why are companies moving toward the hundredth-hour system?
Olivia is a 19-year-old accounting clerk. During the first month of her employment with a firm, she noticed that she received $369.75 for her first semimonthly pay covering 87 regular hours. Did the
Nadine is an administrative assistant for her employer. At the end of her shift one day, her employer requires her to deliver a package to a customer before travelling home. She spends 2 hours
What is the difference between quarter-hour and hundredth-hour pay?
Marshawn is a sales assistant for his employer whose normal commute time is 30 minutes each direction. At the beginning of his shift one day, his employer requires him to pick up a package from a
Eric Matte is a salaried, nonexempt administrative assistant for his company and is paid semimonthly. He is married with two withholding allowances. His annual salary is $39,000, and his standard
John is the office manager for a small mortgage brokerage. Because it is a small office, he is required to keep track of all employee records and pay both employees and contractors. Which of
Amanda M. worked the following schedule: Monday, 8 hours; Tuesday, 9 hours; Wednesday, 7 hours 48 minutes; Thursday, 8 hours; Friday, 8 hours. The employer pays overtime for all time worked in excess
Nick B. worked the following schedule: Monday, 8 hours, 24 minutes; Tuesday, 7 hours, 44 minutes; Wednesday 9 hours, 8 minutes; Thursday, 8 hours, 2 minutes; Friday, 8 hours, 36 minutes. If his
Elmira is a tipped employee in Hawaii. What is the minimum tipped wage for her area?
In what situations might an employee draw money against his or her future pay?
a. Rick is a waiter at Palace Eats in Delaware. He is single with 1 withholding allowance.He receives the standard tipped hourly wage.During the week ending October 20, 20XX, he worked 40hoursand he
What is the primary difference between commission work and piece-rate work?
In what situations could a salaried employee receive overtime pay?
Bill Smith works for NMH Industries. He is married with 2 withholding allowances and earns $18.55 per hour. During a biweekly pay period ending March 5, 20XX, he worked 78.5 hours. Complete the
Mareka, an outside sales representative for an insurance company, receives 3% commission on all new policies she receives in her sales territory. This week she sold $150,000 of new policies and
Of the following items listed, which ones should appear in a payroll register?1. Gross pay2. Hourly rate3. Period ending date4. Office number
Cathy, an outside sales representative for a magazine company, receives 10% commission on all new subscriptions she receives in her sales territory. This week she sold $5,000 of new subscriptions and
Of the items in the following list, which ones should appear in a payroll register?
Priscilla Stamper is a commission-based employee who is single with 1 withholding allowance. She is paid $16.50 per hour and receives commission on net sales. She does not receive commissions until
Leah is an account clerk who is paid $11.23 per hour. During a week's pay period, she worked 38 hours and 47 minutes. Based on a hundredth-hour pay method, what is her gross pay for the period?
Peggy is an employee of Yummy Cake Bakery. She is a cake decorator who is paid based on the number and complexity of the cakes she decorates. What pay basis most accurately describes her
Romeo works for a menswear retail store. His compensation is based on sales of store products to customers. Which type of pay basis represents Romeo's pay?1. Piece rate2. Hourly3. Commission4. Salary
Paris Johnson is a shared employee: She works in the accounting department and has been trained to work at the front desk in times of need. During other employees€™ vacations, she was asked
Kathryn is a waitress at a restaurant in South Carolina. She earns the tipped minimum wage. During a 40-hour work week, how much must she earn in tips to satisfy the minimum wage requirement?1.
Aaron works for Pinecone Parasails. Aaron is a shared employee: He works in the manufacturing department and has been trained to work the sales counter in times of need. During other employees’
Janet completed 1,200 pieces on her 1,400-piece contract for the company. There is a bonus earned if the individual exceeds 15% of her piece contract. How many pieces must Janetcomplete in the
Tessa completed 17 pieces on her 15-piece contract for the company. There is a bonus earned if the individual exceeds 2% of their piece contract. How many pieces must Tessa complete in the remainder
Ryanne is a tipped employee in Idaho. What is the minimum tipped wage for her state?1. $213/hour2. $3.95/hour3. $3.75/hour4. $3.35/hour
How does minimum wage affect commission employees?
Brooke is a minimum-wage worker in South Dakota. She is contemplating moving to a state with a more favorable minimum wage. Which of the following states should she choose?
Certain types of businesses are always covered by FLSA provisions. Which of the following businesses are always covered by FLSA? (Select all that apply)1. Fruit stands selling only locally obtained
Daniel owns Veiled Wonders, a firm that makes window treatments. Some merchandise is custom-made to customer specifications, and some is mass-produced in standardized measurements. He has production
Rose is a minimum wage worker in Missouri. She is contemplating a move to another state. Which of the following states would the most favorable in terms of the highest minimum wage?
West Virginia State University has a policy of hiring students to work in its bookstores and cafeterias. Assuming that 138 students work for the university at minimum wage rates, what is the amount
Complete the W-4 for employment at Dark Forest Ranch:Madeline Emma Jenkins203 County Road 4Douglas, Wyoming 82036SSN: 545-02-1987Married filing jointlyThree dependents. She has no child care expenses
When does a payroll record retention period begin?
Camber is the payroll clerk for Multisound Speakers. A colleague who is classified as an independent contractor requests to be classified as an employee. What factors should Camber consider?1.
Rachael is verifying the accuracy and amount of information contained in the employee records for her company. Which of the following items should be present in the employee information?1. Job
Carlie receives her pay twice per month. Which of the following choices describes her pay frequency?
Amanda, a nonexempt employee at Old Tyme Soda Distributing, works a standard 8:00–5:00 schedule with an hour for lunch. Amanda works in a state requiring overtime for hours in excess of 40 in a
What are the important considerations in setting up a payroll system?
Embry is a new employee of the Peak House restaurant. Which of the following will provide proof of identity for the completion of the I-9? (Select all that apply.)
What constitutes internal controls for a payroll department?
Connie, a nonexempt employee of Westside Motel, works a standard 6:00–3:00 p.m. schedule with an hour for lunch. Connie works in a state requiring overtime for hours over 8 per day and for those
Skylar is the new bookkeeper for a small company and was hired to replace a long-time employee who retired. Upon starting the position, Skylar notices that the prior bookkeeper used a purely manual
Bernie manages a ski resort that has year-round and seasonal employees. Assuming that the ski resort engages in interstate commerce, which are FLSA requirement(s) that Bernie should consider?1.
Anya is a candidate for the position of sales manager with the footwear department of a major retail outlet. She is going to be required to supervise several employees and can determine the direction
Of the following taxes, which one(s) is/are examples of statutory deductions that pertain to employers?A. Social Security taxB. Employee federal income taxC. FUTAD. 401(k) contributions
What taxes are paid by the employer only?
As of 2016, which of the following accurately represents the full FUTA rate and wage base?A. 0.6%, $118,500B. Varies by stateC. 6%, $7,000D. 0.6%, $7,000
Davis is the accounting for Heads Up Hat Corporation. As he prepares the payroll for the semimonthly pay period ending December 15, he notices that some of the year-to-date executives' salaries have
Freedom, Inc., has 16 employees within Denver City & County. All of the employees worked a predominate number of hours within the city. The employees made $7.25 per hour and worked 160 hours each
Of the IRS-stipulated lookback periods, which ones are the most commonly used?
What taxes are paid by the employee only?
Semolians has 22 employees within Denver City & County. The employees each made $8.50 per hour and worked and worked 160 hours each during the month. The employer must remit $4.00 per month per
Annie is a payroll clerk in Wilty Enterprises. She receives a written notice from the IRS notifying the company that they are monthly schedule depositors. How is the deposit schedule determined?A.
Joseph earned $68,000 in 2016 for a company in Kentucky. He is single with 1 withholding allowance and is paid annually. Compute the following employee share of the taxes using the percentage method
The Queen Bee Company has annual payroll taxes of $49,250 during the most recent lookback period. Which payroll deposit frequency will they have, based on that lookback period?A. QuarterlyB.
Leslie earned $155,000 in 2016 for a company in Pennsylvania. She is single with four dependents and is paid annually. Leslie contributed $3,550 to her 401(k) plan and $2,000 to her Section 125 plan.
Match the amounts payroll tax liabilities from the lookback period with the appropriate tax deposit schedule.A. $42,300 annual payroll taxes 1. AnnualB. $145,033 annual payroll taxes2. MonthlyC.
Using the information from P5-4A, compute the employer’s share of the taxes. The FUTA rate for 2016 is .6% on the first $7,000 of employee wages, and the SUTA rate for the company in Kentuckyis
Renny is new payroll accountant with Jupiter Products in Sparks, Nevada. The company had a payroll tax liability of $250,350 during the most recent lookback period. For the quarter ending September
How often must a company report 941 earnings/withholdings?
Using the information from P5-4B, compute the employer’s share of the taxes. The FUTA rate in Pennsylvania for 2016 is .6% on the first $7,000 of employee wages, and the SUTA rate is 3.456% with a
Which form(s) should be prepared and filed by companies with employees and payroll tax liabilities exceeding $50,000 as of December 31, 20XX?A. Form 940B. Form W-4C. Form 941D. Form W-2
Which of the following is a form that must accompany all Forms W-2 submitted to the Social Security Administration?
Wade Pools Company files its second-quarter Form 941 on August 21, after receiving noticed from the IRS of the missing form. What is the failure to file penalty?A.2%B. 5%C. 10%D. 15%
Using the information from P5-6A, complete the attached Form 941 for second quarter 2016.Data from P5-6AVeryclear Glassware is a new business owned by Samantha Peoples. Her first year of operation
What are the penalties associated with the lack of reporting and remitting payroll taxes? A. Failure to reportB. Failure to fileC. Failure to depositD. Failure to remit
Which of the mandatory withholdings have a maximum wage base?
Using the information from P5-6B, complete the attached Form 941 for third quarter 2016.Data from P5-6BFideaux is a new business owned by Lewis Brooks. His first year of operation commenced on June
Using the information from P5-6A and P5-7A for Veryclear Glassware (California Employer Account Number 999-9999-9), complete the following State of California Form DE-9, Quarterly Contribution and
How did the Affordable Care Act change Medicare Tax withholding percentages?
Using the information from P5-6B and P5-7B for Fideaux, complete the following State of California Form DE-9, Quarterly Contribution and Report of Wages Report. California employer account number is
ZRT, Inc., paid its 25 employees a total of $863,428.49 during 2015.Of these wages, $5,400 is exempt fringe benefits (Section 125 cafeteria plans) and $9,850 is exempt retirement benefits (employer
Blier’s Bears paid its 9 employees a total of $432,586.40 during 2015. All employees have worked there for the full calendar year and reached the FUTA wage base during the first quarter, taxes were
Why is it important to prepare the benefit analysis report or the total compensation report?A. The reports promote employee education about the total value of their salary and benefits.B. The reports
Leda Inc. is located at 433 Augusta Road, Caribou, Maine, 04736, phone number 201-555-1212. The Federal EIN is 54-3910394, and a Maine Revenue Services number of 3884019. Owner, Amanda Leda has asked
Which of the following represent the purpose(s) of the labor distribution report?
Which employers must use Schedule B?
Which of the following is a characteristic of workers' compensation?
Using the information from P5-10A for Leda Inc., complete Form W-3 that must accompany the company's Forms W-2. Leda Inc. is a 941-SS payer and is a private, for-profit company. No third-party sick
Famous Flooring has employees in its manufacturing, sales, and administrative departments. Which department will have the highest rate for its workers' compensation insurance?
How do employers know that they must use Form 944?
What is Form 940?

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