: Payroll Accounting
_____ provide(s) benefits to temporarily disabled employees.
Answer:
A. State disability insurance
B. Social Security tax
C. Union dues
D. Cafeteria plans - correct answer A. State disability insurance
A _____ is a voluntary deduction that can provide a variety of benefits to employees.
Answer:
A. cafeteria plan
B. retirement plan
C. medical plan
D. defined contribution plan - correct answer A. cafeteria plan
A _____ sets aside funds to be used for health-care expenses.
Answer:
A. flexible spending account
B. Payroll Deduction IRA
C. SIMPLE IRA plan
D. 403(b) plan - correct answer A. flexible spending account
A federal government employee earns $7.48/hour. Is this compliant or non-compliant
with the Fair Labor Standards Act? - correct answer Compliant
A full-time student, who works for a local college, earns $7.20/hour for working four
hours per day, four days a week, during the school year. Is this compliant or non-
compliant with the Fair Labor Standards Act? - correct answer Compliant
A hospital employee is paid $6.95/hour. Is this compliant or non-compliant with the Fair
Labor Standards Act? - correct answer Non-Compliant
A pay period can be which of the following?
Answer:
A. Monthly
B. Weekly
C. Biweekly
D. Semimonthly
E. All of these options - correct answer All of these options
,A small business, for which the SIMPLE IRA plan is designed, consists of fewer than
_____ employees.
Answer:
A. 50
B. 100
C. 500
D. 1,000 - correct answer B. 100
A student learner in a qualified vocational program earns $5.50/hour. The employer has
not yet applied for an authorizing certificate. Is this compliant or non-compliant with the
Fair Labor Standards Act? - correct answer Non-compliant
A terminated employee is or is not entitled to all compensation earned. These earnings
are subject to federal tax withholding. - correct answer Is entitled
A workweek can differ from a ____ week. - correct answer Calendar
After death, a portion of employee's earnings __may be/may not be___ paid. These are
not subject to federal tax withholding - correct answer may be paid
All local jurisdictions also impose a local income tax withholding on residents and
nonresidents.
Answer:
A. True
B. False - correct answer False
All of the cafeteria plan options listed below may be available to employees as voluntary
nontaxable deductions except:
Answer:
A. Medicare
B. Group-term life insurance
C. Medical care reimbursements
D. Adoption assistance - correct answer A. Medicare
An administrative (office) employee earns an annual salary which, when divided by total
hours worked during the year, is the equivalent of $6.68/hour. Is this compliant or non-
compliant with the Fair Labor Standards Act? - correct answer Compliant
An employee at a local bakery begins working on June 1. He turns 20 on October 14
and earns $4.25/hour during his first six months of employment. Is this compliant or
non-compliant with the Fair Labor Standards Act? - correct answer Non-compliant
An employee who is permitted to decline federal income tax withholding can write which
of the following words within Form W-4 to indicate that no federal income tax should be
withheld from his/her pay?
A. Deduction
, B. Allowance
C. Exempt
D. Zero - correct answer C. Exempt
An employer can designate any 7-day period as a _____ as long as it begins and ends
consistently each week.
Workweek
Vacation
Pay period
Payday - correct answer Workweek
An employer must subtract tax-deferred contributions from gross pay to arrive at ____
pay. This represents a portion of gross pay used to calculate each of the mandatory
deductions. - correct answer Taxable
An updated W-4 Form must be processed by the employer no later than the start of the
first payroll period that ends at least _____ days after the employee submits the form.
Answer:
A. 3
B. 10
C. 15
D. 30 - correct answer D. 30
Based on the Personal Allowances Worksheet, how many federal allowances would be
claimed by a single employee with one job and no dependents, who files as single on
his tax return, and who claims no credits on his tax returns?
0
1
2
3 - correct answer 2
Bonus - correct answer planned or unplanned additional amounts
By what date should the W-2 be furnished to employees and filed with the IRS?
January 31st
March 15th
April 15
December 31st - correct answer January 31st
Circular E - correct answer Also known as Publication 15. An employer's tax guide
written by the IRS. Includes due dates for payroll forms, tables to calculate tax
withholding, a summary of regulations, and IRS contact information.
Commission - correct answer a percentage of each sale; can be either the only form of
earned income or may be earned in conjunction with a salary.
_____ provide(s) benefits to temporarily disabled employees.
Answer:
A. State disability insurance
B. Social Security tax
C. Union dues
D. Cafeteria plans - correct answer A. State disability insurance
A _____ is a voluntary deduction that can provide a variety of benefits to employees.
Answer:
A. cafeteria plan
B. retirement plan
C. medical plan
D. defined contribution plan - correct answer A. cafeteria plan
A _____ sets aside funds to be used for health-care expenses.
Answer:
A. flexible spending account
B. Payroll Deduction IRA
C. SIMPLE IRA plan
D. 403(b) plan - correct answer A. flexible spending account
A federal government employee earns $7.48/hour. Is this compliant or non-compliant
with the Fair Labor Standards Act? - correct answer Compliant
A full-time student, who works for a local college, earns $7.20/hour for working four
hours per day, four days a week, during the school year. Is this compliant or non-
compliant with the Fair Labor Standards Act? - correct answer Compliant
A hospital employee is paid $6.95/hour. Is this compliant or non-compliant with the Fair
Labor Standards Act? - correct answer Non-Compliant
A pay period can be which of the following?
Answer:
A. Monthly
B. Weekly
C. Biweekly
D. Semimonthly
E. All of these options - correct answer All of these options
,A small business, for which the SIMPLE IRA plan is designed, consists of fewer than
_____ employees.
Answer:
A. 50
B. 100
C. 500
D. 1,000 - correct answer B. 100
A student learner in a qualified vocational program earns $5.50/hour. The employer has
not yet applied for an authorizing certificate. Is this compliant or non-compliant with the
Fair Labor Standards Act? - correct answer Non-compliant
A terminated employee is or is not entitled to all compensation earned. These earnings
are subject to federal tax withholding. - correct answer Is entitled
A workweek can differ from a ____ week. - correct answer Calendar
After death, a portion of employee's earnings __may be/may not be___ paid. These are
not subject to federal tax withholding - correct answer may be paid
All local jurisdictions also impose a local income tax withholding on residents and
nonresidents.
Answer:
A. True
B. False - correct answer False
All of the cafeteria plan options listed below may be available to employees as voluntary
nontaxable deductions except:
Answer:
A. Medicare
B. Group-term life insurance
C. Medical care reimbursements
D. Adoption assistance - correct answer A. Medicare
An administrative (office) employee earns an annual salary which, when divided by total
hours worked during the year, is the equivalent of $6.68/hour. Is this compliant or non-
compliant with the Fair Labor Standards Act? - correct answer Compliant
An employee at a local bakery begins working on June 1. He turns 20 on October 14
and earns $4.25/hour during his first six months of employment. Is this compliant or
non-compliant with the Fair Labor Standards Act? - correct answer Non-compliant
An employee who is permitted to decline federal income tax withholding can write which
of the following words within Form W-4 to indicate that no federal income tax should be
withheld from his/her pay?
A. Deduction
, B. Allowance
C. Exempt
D. Zero - correct answer C. Exempt
An employer can designate any 7-day period as a _____ as long as it begins and ends
consistently each week.
Workweek
Vacation
Pay period
Payday - correct answer Workweek
An employer must subtract tax-deferred contributions from gross pay to arrive at ____
pay. This represents a portion of gross pay used to calculate each of the mandatory
deductions. - correct answer Taxable
An updated W-4 Form must be processed by the employer no later than the start of the
first payroll period that ends at least _____ days after the employee submits the form.
Answer:
A. 3
B. 10
C. 15
D. 30 - correct answer D. 30
Based on the Personal Allowances Worksheet, how many federal allowances would be
claimed by a single employee with one job and no dependents, who files as single on
his tax return, and who claims no credits on his tax returns?
0
1
2
3 - correct answer 2
Bonus - correct answer planned or unplanned additional amounts
By what date should the W-2 be furnished to employees and filed with the IRS?
January 31st
March 15th
April 15
December 31st - correct answer January 31st
Circular E - correct answer Also known as Publication 15. An employer's tax guide
written by the IRS. Includes due dates for payroll forms, tables to calculate tax
withholding, a summary of regulations, and IRS contact information.
Commission - correct answer a percentage of each sale; can be either the only form of
earned income or may be earned in conjunction with a salary.
