PAYROLL ACCOUNTING EXAM QUESTIONS
AND ANSWERS 100% CORRECT!!!
, payroll - ANSWER pertains to both salaries and wages of employees
salaries - ANSWER often expressed in terms of a specified amount per month or per
year rather than an hourly rate, usually what managerial, administrative, and sales
personnel are paid
wages - ANSWER based on a rate per hour or on a piece work basis (such as per unit
of product) usually what sotre clerks, factory employees, and manual laborers are paid
payroll does not apply to - ANSWER payments made for services of professionals
fees - ANSWER payments made for the services of professionals
determining the payroll - ANSWER gross earnings, payroll deductions, net pay
gross earnings - ANSWER the total compensation earned by an employee, consists of
wages or salaries, plus any bonuses and commissions
total wages - ANSWER multiply the hours worked by the hourly rate of pay
salary - ANSWER based on a monthly or yearly rate
bonus - ANSWER compensation to management and other personnel, based on factors
such as increased sales or the amount of net income
payroll deductions - ANSWER deductions from gross earnings to determine the amount
of a paycheck
mandatory deductions are required by law and consist of - ANSWER FICA taxes and
income taxes
FICA taxes - ANSWER federal insurance contribution act, designed to provide workers
with supplemental retirement, employment disability, and medical benefits
7.65% - ANSWER 6.2% Social Security tax plus 1.45% on the first $110,100 of salary
and wages
AND ANSWERS 100% CORRECT!!!
, payroll - ANSWER pertains to both salaries and wages of employees
salaries - ANSWER often expressed in terms of a specified amount per month or per
year rather than an hourly rate, usually what managerial, administrative, and sales
personnel are paid
wages - ANSWER based on a rate per hour or on a piece work basis (such as per unit
of product) usually what sotre clerks, factory employees, and manual laborers are paid
payroll does not apply to - ANSWER payments made for services of professionals
fees - ANSWER payments made for the services of professionals
determining the payroll - ANSWER gross earnings, payroll deductions, net pay
gross earnings - ANSWER the total compensation earned by an employee, consists of
wages or salaries, plus any bonuses and commissions
total wages - ANSWER multiply the hours worked by the hourly rate of pay
salary - ANSWER based on a monthly or yearly rate
bonus - ANSWER compensation to management and other personnel, based on factors
such as increased sales or the amount of net income
payroll deductions - ANSWER deductions from gross earnings to determine the amount
of a paycheck
mandatory deductions are required by law and consist of - ANSWER FICA taxes and
income taxes
FICA taxes - ANSWER federal insurance contribution act, designed to provide workers
with supplemental retirement, employment disability, and medical benefits
7.65% - ANSWER 6.2% Social Security tax plus 1.45% on the first $110,100 of salary
and wages
