Test Bank for Payroll Accounting Final
9th Edition by Jeanette Landin
Nondiscretionary bonuses are part of the determination of the regular rate of pay.
True
False - ANStrue
Which of the following is part of the Family and Medical Leave Act for the employer:
a.Must pay the employee 50% of their salary during the leave
b.Must allow all employees to take the leave
c.Must provide for 9 months of unpaid leave
d.Must continue the employee's health-care coverage during the leave
e.All of these choices are correct. - ANSd.Must continue the employee's health-care coverage
during the leave
For which of the following payments is the employer required to withhold federal income taxes?
a.Minister of Presbyterian church
b.Advances made to sales personnel for traveling expenses
c.Deceased person's wages paid to the estate
d.Tipped employee's monthly tips of $120
e.All of these choices are correct. - ANSd.Tipped employee's monthly tips of $120
If the accumulated employment taxes during a quarter are less than $2,500, no deposits are
required.
True
False - ANStrue
Noncash fringe benefits that are provided employees are treated as nontaxable income and
thus are excluded from federal income tax withholding.
True
False - ANSfalse
Which of the following Acts established the Equal Employment Opportunity Commission
(EEOC)?
,a.Immigration Reform and Control Act of 1986
b.Civil Rights Act of 1964
c.Americans with Disabilities Act
d.Age Discrimination in Employment Act
e.None of these choices are correct. - ANSb.Civil Rights Act of 1964
Which of the following deposit requirements pertains to a nonagricultural employer who has
employer FICA taxes and withheld employee FICA taxes and income taxes of $125,000 at the
end of payday on Friday, August 14, 20--?
a.The taxes must be deposited by the close of the next banking day.
b.The taxes must be deposited on or before August 31.
c.The undeposited taxes should be carried over to the end of September.
d.No deposit is required until Tuesday, August 18.
e.None of these choices are correct. - ANSa.The taxes must be deposited by the close of the
next banking day.
Directors of corporations who only attend and participate in board of directors' meetings are not
covered as employees under FUTA.
True
False - ANStrue
Which of the following items would require an adjusting entry at the end of each accounting
period?
a.Withholdings for a 401(k) plan
b.Union dues withheld
c.Garnishment for child support payments
d.Vacation pay earned by employees
e.None of these choices are correct. - ANSd.Vacation pay earned by employees
Which of the following accounts is an expense account in which an employer records the FICA,
FUTA, and SUTA taxes?
a.Payroll Taxes
b.Salaries Payable
c.SUTA Taxes Payable
d.Wages Expense
e.None of these choices are correct. - ANSa.Payroll Taxes
If an employer pays unemployment taxes to two states, it will have the same SUTA tax rate in
both states.
True
False - ANSFalse
, Employees who are receiving remedial education may work up to 10 hours overtime each week
without receiving overtime pay.
True
False - ANStrue
Which of the following acts gives a tax credit to employers for offering health insurance to their
employees?
a.Fair Labor Standards Act
b.Civil Rights Act
c.Patient Protection and Affordable Care Act
d.Family and Medical Leave Act
e.None of these choices are correct. - ANSc.Patient Protection and Affordable Care Act
Under the continental system of recording time, 9:20 p.m. is recorded as:
a.9:20P.
b.2120.
c.P2120.
d.2220.
e.None of these choices are correct. - ANSb.2120.
In order to prepare Forms W-2, an employer would utilize the employee's earnings record.
True
False - ANSTrue
Which of the following is used to provide a continuous record of the relationship between
employer and employee?
a.Change in payroll rate form
b.Hiring notice
c.Employee history record
d.Employee's earnings record
e.None of these choices are correct. - ANSc.Employee history record
Which of the following acts deals with the unpaid leave for a family or medical emergency?
a.Occupational Safety and Health Act
b.Fair Labor Standards Act
c.Family and Medical Leave Act of 1993
d.Walsh-Healey Public Contracts Act
e.None of these choices are correct. - ANSc.Family and Medical Leave Act of 1993
A stated percentage of revenue paid an employee who transacts a piece of business or
performs a service is called:
a.a commission.
b.a piece rate.
c.a remunerative salary.
9th Edition by Jeanette Landin
Nondiscretionary bonuses are part of the determination of the regular rate of pay.
True
False - ANStrue
Which of the following is part of the Family and Medical Leave Act for the employer:
a.Must pay the employee 50% of their salary during the leave
b.Must allow all employees to take the leave
c.Must provide for 9 months of unpaid leave
d.Must continue the employee's health-care coverage during the leave
e.All of these choices are correct. - ANSd.Must continue the employee's health-care coverage
during the leave
For which of the following payments is the employer required to withhold federal income taxes?
a.Minister of Presbyterian church
b.Advances made to sales personnel for traveling expenses
c.Deceased person's wages paid to the estate
d.Tipped employee's monthly tips of $120
e.All of these choices are correct. - ANSd.Tipped employee's monthly tips of $120
If the accumulated employment taxes during a quarter are less than $2,500, no deposits are
required.
True
False - ANStrue
Noncash fringe benefits that are provided employees are treated as nontaxable income and
thus are excluded from federal income tax withholding.
True
False - ANSfalse
Which of the following Acts established the Equal Employment Opportunity Commission
(EEOC)?
,a.Immigration Reform and Control Act of 1986
b.Civil Rights Act of 1964
c.Americans with Disabilities Act
d.Age Discrimination in Employment Act
e.None of these choices are correct. - ANSb.Civil Rights Act of 1964
Which of the following deposit requirements pertains to a nonagricultural employer who has
employer FICA taxes and withheld employee FICA taxes and income taxes of $125,000 at the
end of payday on Friday, August 14, 20--?
a.The taxes must be deposited by the close of the next banking day.
b.The taxes must be deposited on or before August 31.
c.The undeposited taxes should be carried over to the end of September.
d.No deposit is required until Tuesday, August 18.
e.None of these choices are correct. - ANSa.The taxes must be deposited by the close of the
next banking day.
Directors of corporations who only attend and participate in board of directors' meetings are not
covered as employees under FUTA.
True
False - ANStrue
Which of the following items would require an adjusting entry at the end of each accounting
period?
a.Withholdings for a 401(k) plan
b.Union dues withheld
c.Garnishment for child support payments
d.Vacation pay earned by employees
e.None of these choices are correct. - ANSd.Vacation pay earned by employees
Which of the following accounts is an expense account in which an employer records the FICA,
FUTA, and SUTA taxes?
a.Payroll Taxes
b.Salaries Payable
c.SUTA Taxes Payable
d.Wages Expense
e.None of these choices are correct. - ANSa.Payroll Taxes
If an employer pays unemployment taxes to two states, it will have the same SUTA tax rate in
both states.
True
False - ANSFalse
, Employees who are receiving remedial education may work up to 10 hours overtime each week
without receiving overtime pay.
True
False - ANStrue
Which of the following acts gives a tax credit to employers for offering health insurance to their
employees?
a.Fair Labor Standards Act
b.Civil Rights Act
c.Patient Protection and Affordable Care Act
d.Family and Medical Leave Act
e.None of these choices are correct. - ANSc.Patient Protection and Affordable Care Act
Under the continental system of recording time, 9:20 p.m. is recorded as:
a.9:20P.
b.2120.
c.P2120.
d.2220.
e.None of these choices are correct. - ANSb.2120.
In order to prepare Forms W-2, an employer would utilize the employee's earnings record.
True
False - ANSTrue
Which of the following is used to provide a continuous record of the relationship between
employer and employee?
a.Change in payroll rate form
b.Hiring notice
c.Employee history record
d.Employee's earnings record
e.None of these choices are correct. - ANSc.Employee history record
Which of the following acts deals with the unpaid leave for a family or medical emergency?
a.Occupational Safety and Health Act
b.Fair Labor Standards Act
c.Family and Medical Leave Act of 1993
d.Walsh-Healey Public Contracts Act
e.None of these choices are correct. - ANSc.Family and Medical Leave Act of 1993
A stated percentage of revenue paid an employee who transacts a piece of business or
performs a service is called:
a.a commission.
b.a piece rate.
c.a remunerative salary.