CHAPTER 10 – PAYROLL EXAM
PRACTICE
Part A – Multiple Choice
1. What is payroll?
A. The process of purchasing inventory
B. The business process of paying employees
C. The process of calculating sales
D. The process of preparing bank statements
2. How many weeks are there in a year according to the chapter?
A. 48
B. 50
C. 52
D. 54
3. Which of the following is a mandatory payroll deduction?
A. Medical insurance
B. Life insurance
C. CPP
D. Vacation pay
4. Net pay is calculated as:
A. Gross Pay + Deductions
B. Gross Pay − Deductions
C. Gross Pay × Deductions
D. Gross Pay ÷ Deductions
5. Which of the following is included in a payroll system?
A. Social Insurance Number
B. Regular and overtime hours
C. Pay rates
D. All of the above
Part B – Short Answer
6. List the five steps involved in processing payroll.
7. What is the difference between gross pay and net pay?
8. Name the three mandatory/compulsory deductions identified in the chapter.
, 9. What is the difference between hourly payroll and piecework payroll?
10. What is commission payroll?
11. What is salary payroll?
12. Explain the difference between time-and-a-half overtime and double-time overtime.
Part C – Calculation Questions
13. Hourly Payroll
Maria earns $24 per hour and works 40 regular hours in one week.
Calculate her regular gross pay.
14. Overtime
Ahmed earns $20 per hour. He works 46 hours in one week.
Overtime is paid at time-and-a-half (1.5×).
Calculate:
a) Regular hours
b) Overtime hours
c) Overtime rate
d) Regular gross pay
e) Overtime pay
f) Total gross pay
The chapter gives the overtime method as regular hours × regular rate and overtime hours ×
overtime rate.
15. Double-Time Overtime
Sarah earns $25 per hour and works 6 hours on a Sunday.
Sunday overtime is paid at double time.
PRACTICE
Part A – Multiple Choice
1. What is payroll?
A. The process of purchasing inventory
B. The business process of paying employees
C. The process of calculating sales
D. The process of preparing bank statements
2. How many weeks are there in a year according to the chapter?
A. 48
B. 50
C. 52
D. 54
3. Which of the following is a mandatory payroll deduction?
A. Medical insurance
B. Life insurance
C. CPP
D. Vacation pay
4. Net pay is calculated as:
A. Gross Pay + Deductions
B. Gross Pay − Deductions
C. Gross Pay × Deductions
D. Gross Pay ÷ Deductions
5. Which of the following is included in a payroll system?
A. Social Insurance Number
B. Regular and overtime hours
C. Pay rates
D. All of the above
Part B – Short Answer
6. List the five steps involved in processing payroll.
7. What is the difference between gross pay and net pay?
8. Name the three mandatory/compulsory deductions identified in the chapter.
, 9. What is the difference between hourly payroll and piecework payroll?
10. What is commission payroll?
11. What is salary payroll?
12. Explain the difference between time-and-a-half overtime and double-time overtime.
Part C – Calculation Questions
13. Hourly Payroll
Maria earns $24 per hour and works 40 regular hours in one week.
Calculate her regular gross pay.
14. Overtime
Ahmed earns $20 per hour. He works 46 hours in one week.
Overtime is paid at time-and-a-half (1.5×).
Calculate:
a) Regular hours
b) Overtime hours
c) Overtime rate
d) Regular gross pay
e) Overtime pay
f) Total gross pay
The chapter gives the overtime method as regular hours × regular rate and overtime hours ×
overtime rate.
15. Double-Time Overtime
Sarah earns $25 per hour and works 6 hours on a Sunday.
Sunday overtime is paid at double time.
