PAYROLL ACCOUNTING 2026 MIDTERM
ASSESSMENT EXAM
◉ 2120. Answer: Under the continental system of recording time,
9:20 p.m. is recorded as:
◉ Wage differentials based on a seniority system allowed.. Answer:
Under the Equal Pay Act:
◉ True. Answer: Bona fide meal periods when the employee is
completely relieved from duty are not considered working time.
(T/F)
◉ False. Answer: In converting semimonthly wage rates to hourly
rates, divide the semimonthly rate to 4 to arrive at the weekly rate,
then divide this rate by the standard number of hours. (T/F)
◉ True. Answer: An employer can credit up to $5.12 of a tipped
employee's minimum wage as coming from the tips receiving by that
employee. (T/F)
◉ False. Answer: Under no conditions may children under age 16 be
employed in food service establishments. (T/F)
,◉ True. Answer: To calculate the overtime pay for a commissioned
worker, divide the total commission by the hours worked, and then
take one-half of the resulting rate of pay. (T/F)
◉ divide the total weekly earnings from piece rate and all other
sources by the hours worked into the week. Answer: To determine a
pieceworkers regular hourly rate for one week:
◉ True. Answer: Under the piece-rate system, workers are paid
according to their output. (T/F)
◉ False. Answer: The FLSA contains detailed specifications of the
methods that employers must follow in keeping time records (T/F)
◉ True. Answer: One of the tests to be met for the white-collar
exemption for an executive is to be paid a salary of at least $455 per
week. (T/F)
◉ principal activities. Answer: Those tasks that employees must
perform and which include any work of consequence performed for
the employer are known as:
◉ 2% of the undeposited taxes. Answer: Barr fails to make a timely
deposit of FICA taxes and withheld income taxes until five days after
the due date. The penalty facing Barr is:
, ◉ True. Answer: Each year, the FICA (OASDI portion) taxable wage
base is automatically adjusted whenever a cost of living raise in
social security benefits becomes available. (T/F)
◉ False. Answer: An employers social security and withheld income
taxes for the quarter are less than $2,500. The employer must
deposit the taxes at its bank at the time of filing the fourth quarter
form 941. (T/F)
◉ Federal government secretaries hired in 1990. Answer: FICA
excludes from coverage all of the following kinds of employment
except:
◉ True. Answer: Dismissal pay is considered taxable wages under
FICA. (T/F)
◉ False. Answer: In its definition of employee, FICA clearly
distinguishes between classes or grades of employees. (T/F)
◉ The taxes must be deposited on or before November 15.. Answer:
Which of the following deposit requirements pertains to a monthly
depositor who has accumulated employment taxes of $2,900 at the
end of October?
ASSESSMENT EXAM
◉ 2120. Answer: Under the continental system of recording time,
9:20 p.m. is recorded as:
◉ Wage differentials based on a seniority system allowed.. Answer:
Under the Equal Pay Act:
◉ True. Answer: Bona fide meal periods when the employee is
completely relieved from duty are not considered working time.
(T/F)
◉ False. Answer: In converting semimonthly wage rates to hourly
rates, divide the semimonthly rate to 4 to arrive at the weekly rate,
then divide this rate by the standard number of hours. (T/F)
◉ True. Answer: An employer can credit up to $5.12 of a tipped
employee's minimum wage as coming from the tips receiving by that
employee. (T/F)
◉ False. Answer: Under no conditions may children under age 16 be
employed in food service establishments. (T/F)
,◉ True. Answer: To calculate the overtime pay for a commissioned
worker, divide the total commission by the hours worked, and then
take one-half of the resulting rate of pay. (T/F)
◉ divide the total weekly earnings from piece rate and all other
sources by the hours worked into the week. Answer: To determine a
pieceworkers regular hourly rate for one week:
◉ True. Answer: Under the piece-rate system, workers are paid
according to their output. (T/F)
◉ False. Answer: The FLSA contains detailed specifications of the
methods that employers must follow in keeping time records (T/F)
◉ True. Answer: One of the tests to be met for the white-collar
exemption for an executive is to be paid a salary of at least $455 per
week. (T/F)
◉ principal activities. Answer: Those tasks that employees must
perform and which include any work of consequence performed for
the employer are known as:
◉ 2% of the undeposited taxes. Answer: Barr fails to make a timely
deposit of FICA taxes and withheld income taxes until five days after
the due date. The penalty facing Barr is:
, ◉ True. Answer: Each year, the FICA (OASDI portion) taxable wage
base is automatically adjusted whenever a cost of living raise in
social security benefits becomes available. (T/F)
◉ False. Answer: An employers social security and withheld income
taxes for the quarter are less than $2,500. The employer must
deposit the taxes at its bank at the time of filing the fourth quarter
form 941. (T/F)
◉ Federal government secretaries hired in 1990. Answer: FICA
excludes from coverage all of the following kinds of employment
except:
◉ True. Answer: Dismissal pay is considered taxable wages under
FICA. (T/F)
◉ False. Answer: In its definition of employee, FICA clearly
distinguishes between classes or grades of employees. (T/F)
◉ The taxes must be deposited on or before November 15.. Answer:
Which of the following deposit requirements pertains to a monthly
depositor who has accumulated employment taxes of $2,900 at the
end of October?
