Full Test Bank Payroll Chapter 9 13th Edition - Business Math Procedures 13e Test Bank with Answers by Jeffrey Slater. DOCX document preview.
Practical Business Math Procedures, 13e (Slater)
Chapter 9 Payroll
1) The Fair Labor Standards Act entitles employees to time and a half over 36 1/2 hours.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (2) Calculate gross pay with overtime on the basis of time.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
2) Gross pay = hours worked × rate per hour.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (2) Calculate gross pay with overtime on the basis of time.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
3) Overtime is always calculated at time and a half the regular rate.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (2) Calculate gross pay with overtime on the basis of time.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
4) Being paid biweekly means the salary is paid twice a month.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
5) Being paid biweekly is the same as being paid semimonthly.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
6) Straight piece rate pay provides a worker an incentive to produce more since pay is based on the number of units produced.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
7) Differential pay means that there is one fixed rate per unit that is produced.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
8) A draw is an advance that need not be repaid if the commission does not exceed the draw.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
9) In the portion formula, the commission a worker receives would be the base.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
10) A variable commission scale means that for different levels of net sales there are different commission rates.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
11) An override can never help increase a manager's total pay.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
12) An employee's commission is always based on total dollar sales.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
13) Net pay - deductions = gross pay.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (2) Calculate gross pay with overtime on the basis of time.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
14) FICA stands for federal withholding tax.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
15) The employer will match the employee's Social Security and Medicare contribution.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
16) The Federal Insurance Contributions Act funds the federal income tax program.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
17) A calendar year is July 1 to June 30.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
18) The number of dependents one claims does not affect the amount of Social Security and Medicare tax paid.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
19) A married person will pay in more Social Security and Medicare tax than a single person.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
20) A self-employed person has at least three employees.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
21) Exempt wages means not taxable wages.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
22) Circular E from the Internal Revenue Service contains many tax tables.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
23) There is a maximum amount of Medicare tax an employee can contribute in a calendar year.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
24) The base amount for calculating Social Security taxes never changes from year to year.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
25) The W-4 is used strictly to calculate Social Security and Medicare taxes.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
26) The percentage method can be used to determine the amount of FIT.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
27) The higher the number of allowances claimed on Form W-4, the less in taxes will be taken out of one's paycheck.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
28) A quarter is 13 weeks.
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
29) The taxable earnings column of a payroll register shows the actual tax.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
30) The FICA tax now requires separate reporting for Social Security and Medicare.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
31) Payroll registers cannot record cumulative earnings.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
32) FUTA tax is computed by the wage-bracket table.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
33) SUTA tax is usually paid quarterly.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
34) SUTA tax has no maximum amount that can be paid in a calendar year.
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
35) Employers usually pay employees:
A) Weekly
B) Biweekly
C) Semimonthly
D) Monthly
E) All of these
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
36) If you are paid twice a month, you are being paid:
A) Weekly
B) Biweekly
C) Semimonthly
D) Monthly
E) None of these
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
37) John Flynn works at Stutz Toyota and is paid a(n) ________ against his earned commissions.
A) Bonus to one's salary
B) Salary
C) Draw
D) Amount that is never paid back
E) None of these
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
38) Differential pay schedule is based on:
A) FICA
B) Different levels of performance
C) FUTA
D) Gross pay
E) None of these
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
39) Social Security and Medicare tax:
A) Have different rates
B) Are paid only by employees
C) Are based on the number of dependents not claimed
D) Are paid by only the employer
E) None of these
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
40) The more allowances claimed on Form W-4:
A) The less money deducted for FIT
B) The more money deducted for FIT
C) No FIT ever deducted
D) FUTA increase
E) All of these
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
41) The percentage method aids in calculating:
A) SUTA
B) FUTA
C) FICA
D) FIT
E) None of these
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
A) Rates cannot change
B) State rates will always be lower
C) Rate varies with employment record
D) FUTA will increase
E) None of these
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
43) The taxable earnings column of a payroll register records:
A) What wages will be taxed
B) The actual tax
C) The estimated tax
D) All of these
E) None of these
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
44) FICA tax base:
A) Never changes
B) Changes yearly
C) Changes once every two years
D) Is never more than $60,000
E) None of these
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
45) FUTA tax is paid:
A) By an employee
B) By the employer
C) By both the employee and the employer
D) Only weekly
E) None of these
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
46) Lee Wong is a sales clerk at Sears. She is paid $8.00 per hour plus a commission of 4% on all sales. Assuming Lee works 39 hours and has sales of $4,000, her gross pay is:
A) $312
B) $321
C) $472
D) $427
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
47) Leo Corporation pays its employees on a graduated commission scale: 6% on the first $40,000 in sales, 7% on sales from $40,000 to $80,000, and 9% on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:
A) $2,400
B) $7,450
C) $5,200
D) $1,350
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
48) Ron Swift earned $1,500 last week. He is married, is paid biweekly, and claims two exemptions. Using the percentage method (use tables in the handbook), his income tax is:
A) $109.69
B) $116.40
C) $73.76
D) $140.88
E) None of these
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
49) To date, Jay Ward has cumulative earnings of $118,000. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare):
A) $186.00
B) $31.00
C) $57.66
D) $180.00
E) None of these
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
50) Jill Hartman earns $750 per week plus 3% of sales in excess of $6,500. If Jill sells $25,000 in the first week, her earnings are:
A) $945
B) $1,305
C) $1,500
D) $1,503
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
51) Jim Ross is an automobile salesman who receives a salary of $500 per week plus a commission of 3% on all sales. During a four-week period he sold $42,000 worth of cars. What were Jim's average weekly earnings?
A) $404
B) $1,760
C) $1,670
D) $440
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
52) Bill Burne's earnings are subject to deductions for Social Security, Medicare, and FIT. To date his cumulative earnings are $110,000. This week Bill earns $1,200. Bill, who is married, is paid weekly and claims three exemptions. Assume the Social Security rate is 6.2% on $128,400 and 1.45% for Medicare. His net pay for the week is (use percentage table in handbook to calculate FIT):
A) $528.43
B) $1,026.89
C) $1,690.93
D) $1,609.93
E) None of these
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Analyze
Type: Static
Accessibility: Keyboard Navigation
53) Jim Smith is a salesman who receives a $1,100 draw per week. He receives a 12% commission on all sales. Sales for Jim were $205,000 for the month. Assuming a four-week month, Jim's final commission after the draw for the month is:
A) $24,600
B) $20,200
C) $23,500
D) $26,400
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
54) Lana Powell has cumulative earnings of $116,000 at the end of September. In the first week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is (assume Social Security rate of 6.2% on $118,500 and Medicare of 1.45%):
A) $29.00
B) $153.00
C) $53.20
D) $92.00
E) None of these
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
55) Percentage method tables can show:
A) Weekly period rates
B) Biweekly payroll rates
C) Semimonthly payroll rates
D) Monthly payroll rates
E) All of these
Difficulty: 1 Easy
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
56) Jasper works at Panera Company for $11.25 per hour plus a commission of 2% of her sales. Assuming Jasper worked 26 hours last week and had sales of $2,610, her gross pay is:
A) $290.50
B) $344.70
C) $351.20
D) $342.00
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
57) Sandi works for Elizabeth Arden Cosmetics and earns $500 per week salary plus 4% commission on sales over $2,000. If Sandi sold $2,733 last week, what was her salary?
A) $1,046.66
B) $2,743.00
C) $609.32
D) $906.32
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
58) Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale:
|
|
|
|
|
| 1–50 | = | $ | 1.65 |
| 51–150 | = | $ | 3.30 |
| 151–200 | = | $ | 4.95 |
| Over 200 | = | $ | 6.00 |
What is Mindy's pay if she produced 192 boots for the week?
A) $602.30
B) $702.90
C) $1,152.00
D) $620.30
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
59) Bob Neff, owner of an automotive dealership, pays one of his salesmen, Mike, a $1,300 draw per week plus 6% on all commission sales. Mike sold seven cars over the four-week period, totaling $186,900 for the month. Mike's commission minus the draw is:
A) $6,410
B) $6,041
C) $6,014
D) $5,200
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
60) David is paid on a graduated commission scale at Nooter Company. He receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:
A) $8,200
B) $6,200
C) $4,240
D) $4,420
E) None of these
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
Match the following terms with their definitions.
A) May be used in calculating Social Security and Medicare
B) Pay rate based on schedule of units completed
C) Income tax
D) Minimum wage standard
E) Alternative method to percentage method
F) 52 times a year
G) Aids in determining amount of FIT withheld
H) 26 times a year
I) Method to calculate FIT
J) 24 times a year
K) Different levels result in different commission scales
L) Wages subject to tax
M) Commission to manager
N) Broken down into Social Security and Medicare
O) Wages before deductions
P) Gross pay minus deductions
Q) Aids unemployment program
R) Wages based on percent of the value of goods sold
S) Affected by company's employment record
61) FICA
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
62) FUTA
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
63) Fair Labor Standards Act
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
64) Differential pay
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
65) Payroll register
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
66) Net pay
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
67) Override
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
68) Variable commission scale
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
69) Taxable earnings
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
70) Weekly
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
71) Percentage method
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
72) SUTA
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
73) Straight commission
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
74) Gross pay
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
75) Biweekly
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
76) FIT
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
77) Wage bracket
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
78) W-4
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
79) Semimonthly
Difficulty: 1 Easy
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay; LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-01 (1) Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods.; 09-01 (2) Calculate gross pay with overtime on the basis of time.; 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.; 09-02 (1) Prepare and explain the parts of a payroll register.; 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
Answers: 61) N 62) Q 63) D 64) B 65) A 66) P 67) M 68) K 69) L 70) F 71) I 72) S 73) R 74) O 75) H 76) C 77) E 78) G 79) J
80) Calculate Jim's gross pay (assume time and a half over 40 hours):
M | T | W | TH | F | S | Total Hrs | Rate per Hr | Total Pay |
10 | 8 |
|
|
| 0 | A | $9.50 | B |
A. 10 + 8 + 7.5 + 8.25 + 12.25 + 0 = 46; B. 9.5 × 40 + 9.5 × 1.5 × 6 = $465.50
Difficulty: 2 Medium
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (2) Calculate gross pay with overtime on the basis of time.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
81) Calculate the gross pay for Ryan O'Neal, an apple picker, assuming he picked 7,200 apples:
Number apples | Rate per apple |
1 - 2,000 | .07 |
2,001 - 3,000 | .08 |
Over 3,000 | .12 |
2000 × .07 + 1000 × .08 + (7.200 - 2000 - 1000) × .12 = $724
Difficulty: 2 Medium
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
82) Complete the following weekly payroll:
Assume: (1) FIT calculated by percentage method; (2) Social Security 6.2% on $128,400; and Medicare 1.45%.Cumulative balance before this payroll is below maximum as related to cumulative earnings in calculating Social Security.
Name | Marital Status | Exemptions Claimed | Gross | FIT | Social Security | Medicare | Net Pay |
Joe Riense | M | 3 | $1,400 | A | B | C | D |
B. $86.80
C. $20.30
D. $1,187.59
A. ($1,400 - $239.40) = $1,160.60; $36.60 + .12 × ($1,160.60 - $588) = $105.31; B. 1,400 × .062 = $86.80; C. 1,400 × .0145 = $20.30; D. 1,400 - 105.31 - 86.80 - 20.30 = $1,187.59
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
83) Joyce Meadow pays her three workers $160, $470, and $800, respectively, per week. Calculate what Joyce will pay at the end of the first quarter for (A) state unemployment and (B) federal unemployment. Assume a state rate of 5.4%. Federal rate is .6%. Base is $7,000.
B. 91.14
Total pay worker 1: 13 × 160 = 2,080, Total pay worker 2: 13 × 470 = 6,110; Total pay worker 3: 13 × 800 = 10,400; Total pay: 2,080 + 6,110 + 10,400 = $18,590; Exempt wages not taxed for FUTA or SUTA: 10,400 - 7,000 = $3,400; Taxable pay: 18,590 - 3,400 = 15,190; SUTA = 15,190 × .054 = $820.26; FUTA = 15,190 × .006 = $91.14
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Analyze
Type: Static
Accessibility: Keyboard Navigation
84) Jeff Jones earns $1,200 per week. He is married and claims four withholding allowances. The Social Security rate is 6.2% on $128,400, and Medicare is 1.45%. Each paycheck, his employer also deducts $42.50 for health insurance. What is his net pay? (Calculate FIT by percentage method.)
FIT: $1,200 - ($79.80 × 4) = $880.80; 36.60 + .12 × ×($880.80 - $588) = 71.74; SS: $1,200 × .062 = $74.40; MED: $1,200 × .0145 = $17.40. Net Pay: $1,200 - ($71.74 + $74.40 + $17.40 + $42.50) = $993.96
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Analyze
Type: Static
Accessibility: Keyboard Navigation
85) Ron Smith has cumulative earnings of $110,100. This week he is paid $2,000. Assuming the Social Security rate is 6.2% on $128,400 and 1.45% for Medicare, what is the amount of Social Security and Medicare taken out of Ron's earnings?
Social Security: $2,000 × .062 = $124; Medicare: $2,000 × .0145 = $29.00.
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
86) John Rose, owner of Rose Corporation, has three employees who earn $500, $600, and $700, respectively. After 12 weeks how much has John contributed for state and federal unemployment? Assume a state rate of 5.4% and a federal rate of .6%.
Worker 1 pay: 12 × $500 = $6,000; Worker 2 pay: 12 × $600 = $7,200 ($200 exempt); Worker 3 pay: 12 × $700 = $8,400 ($1,400 exempt); Total Pay - Total Exempt = 6,000 + 7,200 + 8,400 - 200 - 1,400 = $20,000; SUTA = 20,000 × .054 = $1,080; FUTA = 20,000 × .006 = $120
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Analyze
Type: Static
Accessibility: Keyboard Navigation
87) Bill Burton earns $750 per week plus 5% of sales in excess of $7,500. If Bill sells $34,000, how much are his weekly earnings?
750 + .05 (34,000 - 7,500) = $2,075
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
88) Alvin Shore sells jewelry at Ross Jewelers. Ross pays Alvin $10.50 per hour plus a 6% commission on all sales. Assume Alvin works 36 hours and had sales of $4,900. What is Alvin's gross pay?
(36 × $10.50) + ($4,900 × .06) = $672
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
89) Aley Company pays all its employees a graduated commission scale: 3% on the first $30,000 sales, 5% on sales from $30,001 to $110,000, and 7% on sales more than $110,000. Jim Jones, an employee of Aley, had $130,000 in sales. What commission did Jim earn?
(30,000 × .03) + (80,000 × .05) + (20,000 × .07) = 900 + 4,000 + 1,400 = $6,300.00.
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
90) Molly Flynn, an accountant at Coor Company, earned $127,400 from January to June. In July, Molly earned $4,600. Assume a tax rate of 6.2% for Social Security on the first $128,400 and a Medicare rate of 1.45%. How much is the tax for Social Security and Medicare?
Social Security: (128,400 - 127,400) × .062 = $62; Medicare: $4,600 × .0145 = $66.70.
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
91) Andrew Buckner earns $2,580 biweekly. He is married and claims three exemptions. What is Andrew's federal income tax? Use the percentage method (Use the tables in the handbook to answer this question).
2,580 - (159.60 × 3) = $2,101.2; 73.30 + .12 (2,101.2 - 1,177) = $184.20
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
92) Paula Ryan pays her two employees $410 and $650 per week. Assume a state unemployment rate of 5.4% and a federal rate of .6%. What state and federal unemployment tax will Paula pay at the end of Quarter 1 and Quarter 2?
Quarter 1: 13 × 410 = 5,330; 13 × 650 = 8,450 (1,450 is exempt); Taxable Quarter 1: 5,330 + 7,000 = 12,330; SUTA: 12,330 × .006 = $73.98; FUTA = 12,330 × .054 = $665.82; Quarter 2: 7,000 - 5,330 = 1,670 = only part taxable in quarter 2; SUTA = 1,670 × .006 = $10.02; FUTA = 1,670 × .054 = $90.18
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Analyze
Type: Static
Accessibility: Keyboard Navigation
93) Calculate the gross pay of Alice Flynn, a corn picker, assuming she picked 4,150 ears of corn:
Corn Picked | Rate per ear |
1 - 2,000 | $.04 per ear |
2,001 - 3,000 | .05 per ear |
Over 3,000 | .09 per ear |
(2,000 × .04) + (1,000 × .05) + ((4,150 - 2,000 - 1,000) × .09) = $233.50
Difficulty: 2 Medium
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
94) Calculate the gross pay of Alice Flynn, an apple picker, assuming she picked 6,250 apples:
Apples Picked | Rate per apple |
1 - 2,500 | $.04 |
2,501 - 3,500 | .06 |
3,501 - 4,000 | .08 |
Over 4,000 | .10 |
(2,500 × .04) + (1,000 × .06) + (500 × .08) + ((6,250 - 2,500 - 1,000 - 500) × .10) = $425
Difficulty: 2 Medium
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
95) Calculate the net pay. The balance before this weekly payroll is $90 below maximum as related to cumulative earnings in calculating Social Security. Assume a tax rate of 6.2% for Social Security on $128,400 and 1.45% for Medicare:
Name | Marital Status | Exemptions Claimed | Gross | FIT | Soc Sec | Medicare | Net Pay |
B Burns | M | 2 | $900 | A | B | C | D |
A) FIT: 900 - (2 × 79.80) = $740.40; 36.60 + .12 (740.40 - 588) = $54.89; B) SS = .062 × 90 = $5.58; C) Medicare = .0145 × 900 = $13.05; D) Net Pay = 900 - 54.89 - 5.58 - 13.05 = $826.48
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Analyze
Type: Static
Accessibility: Keyboard Navigation
96) Jill is $200 from reaching maximum base as related to cumulative earnings for Social Security. She is paid weekly:
Marital Status | Exemptions Claimed | Gross | FIT | Soc. Sec. | Medicare | Net Pay | |
Jill Rye | M | 3 | $950 | A | B | C | D |
A) FIT: 950 - (3 × 79.80) = $710.60; 36.60 + .12 (710.60 - 588) = $51.31; B) SS = .062 × 200 = $12.40; C) Medicare = .0145 × 950 = $13.78; D) Net Pay = 950 - 51.31 - 12.40 - 13.78 = $872.51
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Analyze
Type: Static
Accessibility: Keyboard Navigation
97) Robin Small pays her three workers $180, $450, and $615, respectively, per week. Calculate what Robin will pay at the end of the first quarter for (A) state unemployment and (B) federal unemployment. Assume a state rate of 5.8%. Federal rate is .6%. Base is $7,000.
180 × 13 = 2,340, 450 × 13 = 5,850, 615 × 13 = 7995 (995 exempt); total for FUTA = 2,340 + 5,850 + 7,000 = 15,190; SUTA = 15,190 × .058 = $881.02; FUTA = 15,190 × .006 = $91.14
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (2) Explain and calculate federal and state unemployment taxes.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
98) Mike Goldsmith is paid $16.40 per hour. Last week he worked 40 hours, and this week 60 hours. Calculate Mike's pay for each week (time and a half over 40 hours):
Last week: 40 × 16.40 = $656; This week: (40 × 16.40) + (20 × 16.40 × 1.5) = $1,148
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (2) Calculate gross pay with overtime on the basis of time.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
99) Rodney Ranger is a shoe salesman for More Co. He is paid $8.60 per hour plus a commission of 3% on all sales. For the week, assuming Rodney works 30 hours and has sales of $2,400, what is his gross pay?
(8.60 × 30) + (2,400 × .03) = $330
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
100) Rolf Company pays its employees on a graduated commission scale: 1% on the first $25,000 sales, 3% on sales from $25,001 to $95,000, and 5% on sales greater than $95,000. If John Jones, an employee of Rolf, had sales of $100,000, what commission did John earn?
(.01 × 25,000) + (.03 × 70,000) + (.05 × (100,000 - 70,000 - 25,000)) = $2,600
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
101) Robert Bryan, Jr., earns $400 per week plus 3% of sales in excess of $7,000. If Robert sells $21,000, how much are his weekly earnings?
$400 + (.03 × $14,000) = $400 + $420 = $820
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
102) Jim Dashinger is a salesman who receives a $100 draw per week. He receives a 12 1/2% commission on all sales. Sales for Jim for the month were $28,000. What did Jim receive after taking the draw into consideration? (Assume a five-week month.)
(.125 × $28,000) - $500 = $3,000.
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
103) Janice Tax, an accountant for Flee Corp., earned $122,700 from January to June. In July she earned $8,000. Assuming a FICA tax rate of 6.2% for Social Security on $128,400 and 1.45% for Medicare, what is the FICA amount for the month?
5,700 × .062 = $353.40; 8,000 × .0145 = $836; 353.40 + 836 = $1,189.40
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
104) Jim Long earned $1,900 biweekly. He claims two exemptions and is married. As his accountant, calculate his federal income tax deduction. Use the percentage method. (Use the tables in the handbook to answer this question.)
1,900 - (2 × 159.60) = 1580.80; 73.30 + .12 (1580.80 - 1,177) = $121.76
Difficulty: 3 Hard
Topic: LU 09-02 Computing Payroll Deductions for Employees' Pay; Employers' Responsibilities
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
105) Caroline earns $290.25 per week plus 4% commission on all sales. If Caroline had sales of $11,500 for each week, what was her total pay for the month assuming a four-week month?
(290.25 + .04 × 11,500) × 4 = $3,001
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Apply
Type: Static
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106) Sonny Siebert earned $485,000 a year as a rookie pitcher for the Cleveland Indians. Assuming a tax rate of 6.2% for Social Security up to $128,400 and Medicare tax of 1.45%, how much did Sonny pay in FICA taxes as a rookie pitcher?
.062 × 128,400 = 7,960.80; .0145 × 485,000 = 7,032.50; Total FICA = 7,960.80 + 7,032.50 = $14,993.30
Difficulty: 3 Hard
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-02 (1) Prepare and explain the parts of a payroll register.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
107) Calculate the gross pay for Ryan Campbell, an orange picker, based on the following differential scale. Ryan picked 3,250 oranges during this pay period.
1-1,000 | $.10 |
1,000 - 2,000 | $.13 |
2,000 - 4,000 | $.17 |
Over 4,000 | $.25 |
(1,000 × .1) + (1,000 × .13) + ((3,250 - 1,000 - 1,000) × .17) = $442.50
Difficulty: 2 Medium
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
108) Dan Zabrowski works according to the following schedule for a given week, and is paid overtime at 1.5 times. Find his total hours, and his gross pay for the week.
Employee | M | T | W | TH | F | S | Total Hrs | Rate per Hr | Gross Pay |
Dan Z. | 10.5 | 10.5 | 0 | 10.5 | 0 | 10.5 | A | $15.80 | B |
A. 10.5 × 4 = 42 hrs; B. 40 × 15.80 + 2 × 15.80 × 1.5 = $679.40
Difficulty: 2 Medium
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (2) Calculate gross pay with overtime on the basis of time.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
109) Jenny earns $700 per week, plus 6% of sales in excess of $5,700. If Jenny sold $15,791 last week, what were her weekly earnings?
($15,791 - $5,700 = $10,091); $700 + (.06 × $10,091) = $605.46; $700 + $605.46 = $1,305.46
Difficulty: 2 Medium
Topic: LU 09-01 Calculating Various Types of Employees' Gross Pay
Learning Objective: 09-01 (3) Calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
Document Information
Connected Book
Business Math Procedures 13e Test Bank with Answers
By Jeffrey Slater