Payroll Exam 6 Latest 2024/2025 Updated
Questions and Answers 100% Correct
668-W - ANSWER-Notice of Levy on Wages, Salary, and Other Income
1096 - ANSWER-Annual Summary and Transmittal of U.S. Information
Returns
Under the FLSA how old must a minor be to be employed? - ANSWER-
14
What is the FUTA tax rate? - ANSWER-6.0%
On form 941, the employer reports - ANSWER-Social Security Wages
What is the formula for calculating an employees net pay? - ANSWER-
Gross pay-deductions for taxes- other deductions
Which plan discriminates in favor of highly compensated employees? -
ANSWER-Nonqualified deferred compensation plans
,What is the federal minimum wage per hour on January 1, 2018? -
ANSWER-$7.25
What law determines time limits with which employees must be paid
after wages are earned? - ANSWER-State Laws
Cafeteria plans are authorized by what internal revenue code section? -
ANSWER-125
The direct deposit data sent to the bank after payroll processing is an
example of - ANSWER-Interface
What taxes, if any, must be withheld from payments to an independent
contractor who provided a tin? - ANSWER-No taxes are withheld
An external audit: - ANSWER-Allows an objective assessment of the
financial statements.
Employees' privacy rights are governed by all of the following except: -
ANSWER-Local Legislation
Under the FLSA, what basis is used to determine whether a non-exempt
employee is to be paid overtime? - ANSWER-Hours worked in a work
week
, Overtime payments are included in the calculation of what tax, if any? -
ANSWER-They are included in all tax calculations
What is the 2018 wage base for social security tax? - ANSWER-
$128,400.00
If an employee does not have federal tax withheld and has not claimed
exempt, what must the employer do? - ANSWER-Provide the employee
with the EITC notice
A computerized payroll system can help a payroll dept. accomplish all of
the following tasks except: - ANSWER-Recognize changes in laws and
regulations
An employee's profit sharing bonus is payable in the year following his
death. How should the bonus be taxed and reported? - ANSWER-
Withhold no taxes and report the bonus on for 1099-misc.
In what ways can a computerized system increase the accuracy of
employees paychecks? - ANSWER-By reducing human error
What federal taxes must an employer withhold from an employees
reported tips? - ANSWER-Federal income, social security and medicare
tax
The main purpose of batch controls is to - ANSWER-Validate data entry
accuracy
Questions and Answers 100% Correct
668-W - ANSWER-Notice of Levy on Wages, Salary, and Other Income
1096 - ANSWER-Annual Summary and Transmittal of U.S. Information
Returns
Under the FLSA how old must a minor be to be employed? - ANSWER-
14
What is the FUTA tax rate? - ANSWER-6.0%
On form 941, the employer reports - ANSWER-Social Security Wages
What is the formula for calculating an employees net pay? - ANSWER-
Gross pay-deductions for taxes- other deductions
Which plan discriminates in favor of highly compensated employees? -
ANSWER-Nonqualified deferred compensation plans
,What is the federal minimum wage per hour on January 1, 2018? -
ANSWER-$7.25
What law determines time limits with which employees must be paid
after wages are earned? - ANSWER-State Laws
Cafeteria plans are authorized by what internal revenue code section? -
ANSWER-125
The direct deposit data sent to the bank after payroll processing is an
example of - ANSWER-Interface
What taxes, if any, must be withheld from payments to an independent
contractor who provided a tin? - ANSWER-No taxes are withheld
An external audit: - ANSWER-Allows an objective assessment of the
financial statements.
Employees' privacy rights are governed by all of the following except: -
ANSWER-Local Legislation
Under the FLSA, what basis is used to determine whether a non-exempt
employee is to be paid overtime? - ANSWER-Hours worked in a work
week
, Overtime payments are included in the calculation of what tax, if any? -
ANSWER-They are included in all tax calculations
What is the 2018 wage base for social security tax? - ANSWER-
$128,400.00
If an employee does not have federal tax withheld and has not claimed
exempt, what must the employer do? - ANSWER-Provide the employee
with the EITC notice
A computerized payroll system can help a payroll dept. accomplish all of
the following tasks except: - ANSWER-Recognize changes in laws and
regulations
An employee's profit sharing bonus is payable in the year following his
death. How should the bonus be taxed and reported? - ANSWER-
Withhold no taxes and report the bonus on for 1099-misc.
In what ways can a computerized system increase the accuracy of
employees paychecks? - ANSWER-By reducing human error
What federal taxes must an employer withhold from an employees
reported tips? - ANSWER-Federal income, social security and medicare
tax
The main purpose of batch controls is to - ANSWER-Validate data entry
accuracy
