FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Employee Net Pay and Pay Methods

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

The purpose of paycards as a pay method is to ______________________________.

A) Prevent employees from opening bank accounts
B) Promote accessibility and portability of employee compensation
C) Protect payroll processes against embezzlement
D) Promote debit card use as a means of economic stimulus

Correct Answer

verified

B

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is the correct sequence for computing net pay?

A) Compute gross pay then deduct withholding and add FICA taxes to obtain net pay.
B) Compute gross pay, compute FICA, deduct pre-tax amounts, and deduct taxes.
C) Compute gross pay, deduct taxes, and add voluntary deductions.
D) Compute gross pay, deduct pre-tax amounts, compute FICA, deduct taxes, and deduct post-tax amounts.

Correct Answer

verified

D

Question 3

Multiple Choice

Review LaterAdd Note

Steve is a full-time exempt employee at a local electricity co-operative.He earns an annual salary of $43,325 and is paid biweekly.What is his Social Security tax deduction for each pay period? (Do not round interim calculations,only round final answer to two decimal points.)

Which of the following is true about cash as a method of paying employees?

The annual payroll tax guide that the IRS distributes is called __________________.

The amount of Federal income tax decreases as the number of allowances increases.

Max earned $1,019.55 during the most recent semimonthly pay period.He is single with 1 withholding allowance.Using the following table,how much should be withheld for Federal income tax?

Amanda is a full-time exempt employee who earns $84,000 annually.She is married with 1 deduction and is paid biweekly.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.Amanda contributes $25.00 per pay period to the United Way.What is her net pay? (Use the percentage method.Do not round intermediate calculations. Round final answers to 2 decimal places.) $\begin{array}{c}\begin{array}{|l|}\hline\text {Payroll Period}\\\\\hline\text {Weekly}\\\text {Biweekly}\\\text {Semimonthly}\\\text {Monthly}\\\text {Quarterly}\\\text {Semiannually}\\\text {Annually}\\\text {Daily or miscellaneous (each day of the payroll }\\\text {period) }\\\hline\end{array}\begin{array}{r|}\hline\text {One Withholding}\\\text {Allowance}\\\hline\$ 76.90 \\ 153.80 \\ 166.70 \\ 333.30 \\ 1,000.00 \\2,000.00 \\ 4,000.00 \\\\ 15.40 \\\hline\end{array}\end{array}$

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?

What is an advantage of direct deposit from the employee's perspective?

Jesse is a part-time nonexempt employee who earns $12.50 per hour.During the last biweekly pay period he worked 35 hours.He is married with zero withholding allowances,which means his Federal income tax deduction is $10.00,and has additional Federal tax withholding of $30 per pay period.What is his net pay? (Do not round interim calculations,only round final answer to two decimal points.)

Which body issued Regulation E to protect consumers from loss of deposited funds?

The regular Medicare tax deduction is 1.45% for employee and employer and must be paid by all employees.

Adam is a part-time employee who earned $495.00 during the most recent pay period.He is married with two withholding allowances.Prior to this pay period,his year-to-date pay is $6,492.39.How much should be withheld from Adam's gross pay for Social Security tax?

Melody is a full-time employee who earns $3,600 per month and is paid semimonthly.She is married with 1 withholding allowance (use the wage-bracket tables) .She has a qualified health insurance deduction of $50 per pay period and contributes 3% to her 401(k) ,both of which are Identify Pre-Tax Deductions .What is her net pay? (Do not round interim calculations,only round final answer to two decimal points.)

If a firm has fewer than 100 employees,which of the following is true?

The percentage method of determining an employee's Federal income tax deductions __________________.

Why do employers use checks as an employment payment method?

Disposable income is defined as:

Julio is single with 1 withholding allowance.He earned $1,025.00 during the most recent semimonthly pay period.He needs to decide between contributing 3% and $30 to his 401(k) plan.If he chooses the method that results in the lowest taxable income,how much will be withheld for Federal income tax (based on the following table) ?