ADP PAYROLL SPECIALIST STUDYS ALL ANSWERS
AND QUESTIONS SET A+
✔✔What is gross pay? - ✔✔An employee's total earnings before taxes and other
deductions are taken out.
✔✔What is net pay? - ✔✔The amount an employee actually takes home after taxes and
deductions.
✔✔What is payroll tax? - ✔✔Taxes associated with employee wages that employers are
responsible for withholding, paying or reporting.
✔✔What is FICA? - ✔✔Federal Insurance Contributions Act. It funds Social Security
and Medicare through payroll taxes.
✔✔What is FUTA? - ✔✔Federal Unemployment Tax Act. It establishes the federal
unemployment tax paid by employers.
✔✔What is SUTA? - ✔✔State Unemployment Tax Act. State-level unemployment taxes
paid by employers, with rules varying by state.
✔✔What is a W-2? - ✔✔A tax form employers provide to employees showing annual
wages and taxes withheld.
✔✔What is a 1099? - ✔✔A tax form generally used to report certain payments made to
independent contractors and other nonemployees.
✔✔What is an employee? - ✔✔A worker generally subject to the employer's direction
and control and typically receiving wages through payroll.
✔✔What is an independent contractor? - ✔✔A self-employed worker who generally
controls how the work is performed and receives payment differently from a traditional
employee.
AND QUESTIONS SET A+
✔✔What is gross pay? - ✔✔An employee's total earnings before taxes and other
deductions are taken out.
✔✔What is net pay? - ✔✔The amount an employee actually takes home after taxes and
deductions.
✔✔What is payroll tax? - ✔✔Taxes associated with employee wages that employers are
responsible for withholding, paying or reporting.
✔✔What is FICA? - ✔✔Federal Insurance Contributions Act. It funds Social Security
and Medicare through payroll taxes.
✔✔What is FUTA? - ✔✔Federal Unemployment Tax Act. It establishes the federal
unemployment tax paid by employers.
✔✔What is SUTA? - ✔✔State Unemployment Tax Act. State-level unemployment taxes
paid by employers, with rules varying by state.
✔✔What is a W-2? - ✔✔A tax form employers provide to employees showing annual
wages and taxes withheld.
✔✔What is a 1099? - ✔✔A tax form generally used to report certain payments made to
independent contractors and other nonemployees.
✔✔What is an employee? - ✔✔A worker generally subject to the employer's direction
and control and typically receiving wages through payroll.
✔✔What is an independent contractor? - ✔✔A self-employed worker who generally
controls how the work is performed and receives payment differently from a traditional
employee.
