PAYROLL ACCOUNTING 2026
COMPREHENSIVE PRACTICE EXAM
◉ The Equal Pay Act stipulates that there cannot be any wage
differentials between the sexes. Answer: false
◉ If a business does not meet the enterprise coverage test, none of
its workers qualify for individual employee coverage. Answer: false
◉ To calculate the overtime pay rate for a commissioned worker,
divide the total commission by the hours worked, and then take one-
half of the resulting rate of pay. Answer: true
◉ Employers may adopt the practice of recording an employee's
starting and stopping time to the nearest quarter of an hour.
Answer: true
◉ "Engaged to wait" and "waiting to be engaged" are both
considered work time. Answer: false
◉ Under the continental system of recording time, 9:20 p.m. is
recorded as: Answer: 2120
,◉ Violators of the overtime provision of the FLSA are required to
pay the unpaid overtime at a rate of triple the employee's rate.
Answer: false
◉ Training sessions are counted as working time when the following
condition is met: Answer: the employer requires the employee's
attendance.
◉ The FLSA sets no limits upon the number of hours that a 15-year-
old person may work so long as the overtime pay provisions are met.
Answer: false
◉ Under the Equal Pay Act: Answer: wage differentials based on a
seniority system are allowed.
◉ Nondiscretionary bonuses are part of the determination of the
regular rate of pay. Answer: true
◉ The FLSA requires that workers receive overtime pay for all hours
worked in excess of 40 in a workweek. Answer: true
◉ Although commissions are considered payments for hours
worked, in all cases they are excluded when determining the regular
hourly rate. Answer: false
,◉ The FLSA defines a tipped employee as one who regularly receives
tips of more than $20 a month. Answer: false
◉ To be designated a semiweekly depositor, how much in
employment taxes would an employer have reported for the four
quarters in the lookback period? Answer: more than 50,000$
◉ Form 941 is used by employers to make their quarterly return of
FICA taxes and withheld income taxes. Answer: true
◉ The FICA tax rates and taxable wage bases are exactly the same
for the employee and employer when the employee makes $200,000
or less. Answer: true
◉ The Social Security Act requires workers to obtain a new account
number each time they change jobs. Answer: false
◉ State and local government employers must make their tax
deposits according to a different schedule than private employers.
Answer: false
◉ Employers file Form 941 with the IRS center of the region in
which the employer's principal place of business is located. Answer:
true
, ◉ FICA defines wages as including the cash value of meals provided
for the convenience of the employees. Answer: true
◉ The taxes imposed under the Social Security Act consist of:
Answer: all of the above
◉ Which of the following payments are not taxable for FICA?
Answer: Wage supplements to cover difference between employees'
salaries and their military pay.
◉ Which of the following deposit requirements pertains to a
semiweekly depositor who has accumulated employment taxes of
$17,500 on payday, Saturday, May 16, 20--? Answer: The taxes must
be deposited on or before Friday, May 22.
◉ Employees are liable for their FICA taxes only until the taxes have
been collected from their pay by their employer. Answer: true
◉ A worker hired by the federal government after 1983 is covered
under FICA. Answer: true
◉ If an employer fails to file an employment tax return on the due
date, a penalty based on a certain percentage of the amount of tax
required to be reported may be added to the tax. Answer: true
COMPREHENSIVE PRACTICE EXAM
◉ The Equal Pay Act stipulates that there cannot be any wage
differentials between the sexes. Answer: false
◉ If a business does not meet the enterprise coverage test, none of
its workers qualify for individual employee coverage. Answer: false
◉ To calculate the overtime pay rate for a commissioned worker,
divide the total commission by the hours worked, and then take one-
half of the resulting rate of pay. Answer: true
◉ Employers may adopt the practice of recording an employee's
starting and stopping time to the nearest quarter of an hour.
Answer: true
◉ "Engaged to wait" and "waiting to be engaged" are both
considered work time. Answer: false
◉ Under the continental system of recording time, 9:20 p.m. is
recorded as: Answer: 2120
,◉ Violators of the overtime provision of the FLSA are required to
pay the unpaid overtime at a rate of triple the employee's rate.
Answer: false
◉ Training sessions are counted as working time when the following
condition is met: Answer: the employer requires the employee's
attendance.
◉ The FLSA sets no limits upon the number of hours that a 15-year-
old person may work so long as the overtime pay provisions are met.
Answer: false
◉ Under the Equal Pay Act: Answer: wage differentials based on a
seniority system are allowed.
◉ Nondiscretionary bonuses are part of the determination of the
regular rate of pay. Answer: true
◉ The FLSA requires that workers receive overtime pay for all hours
worked in excess of 40 in a workweek. Answer: true
◉ Although commissions are considered payments for hours
worked, in all cases they are excluded when determining the regular
hourly rate. Answer: false
,◉ The FLSA defines a tipped employee as one who regularly receives
tips of more than $20 a month. Answer: false
◉ To be designated a semiweekly depositor, how much in
employment taxes would an employer have reported for the four
quarters in the lookback period? Answer: more than 50,000$
◉ Form 941 is used by employers to make their quarterly return of
FICA taxes and withheld income taxes. Answer: true
◉ The FICA tax rates and taxable wage bases are exactly the same
for the employee and employer when the employee makes $200,000
or less. Answer: true
◉ The Social Security Act requires workers to obtain a new account
number each time they change jobs. Answer: false
◉ State and local government employers must make their tax
deposits according to a different schedule than private employers.
Answer: false
◉ Employers file Form 941 with the IRS center of the region in
which the employer's principal place of business is located. Answer:
true
, ◉ FICA defines wages as including the cash value of meals provided
for the convenience of the employees. Answer: true
◉ The taxes imposed under the Social Security Act consist of:
Answer: all of the above
◉ Which of the following payments are not taxable for FICA?
Answer: Wage supplements to cover difference between employees'
salaries and their military pay.
◉ Which of the following deposit requirements pertains to a
semiweekly depositor who has accumulated employment taxes of
$17,500 on payday, Saturday, May 16, 20--? Answer: The taxes must
be deposited on or before Friday, May 22.
◉ Employees are liable for their FICA taxes only until the taxes have
been collected from their pay by their employer. Answer: true
◉ A worker hired by the federal government after 1983 is covered
under FICA. Answer: true
◉ If an employer fails to file an employment tax return on the due
date, a penalty based on a certain percentage of the amount of tax
required to be reported may be added to the tax. Answer: true
