Question : 91. An employee receives an hourly rate of $40, with time : 1246520

 

91. An employee receives an hourly rate of $40, with time and a half for all hours worked in excess of 40 during a week.  Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings.  What is the gross pay for the employee? 
A. $775.00
B. $1,840.00
C. $1,960.00
D. $1,562.60

92. An employee receives an hourly rate of $25, with time and a half for all hours worked in excess of 40 during a week.  Payroll data for the current week are as follows: hours worked, 46 federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings.  What is the net amount to be paid the employee? 
A. $875.00
B. $838.62
C. $857.00
D. $1133.14

93. Prior to the last weekly payroll period of the calendar year, the cumulative earnings of employees A and B are $99,350 and $91,000 respectively.  Their earnings for the last completed payroll period of the year are $850 each.  The amount of earnings subject to social security tax at 6% is $100,000.  All earnings are subject to Medicare tax of 1.5%.  Assuming that the payroll will be paid on December 29, what will be the employer’s total FICA tax for this payroll period on the two salary amounts of $850 each? 
A. $127.50
B. $115.50
C. $112.50
D. $0

94. The total earnings of an employee for a payroll period is referred to as  
A. take-home pay
B. pay net of taxes
C. net pay
D. gross pay

95. An employee receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week.  Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $300; cumulative earnings for year prior to current week, $90,700; social security tax rate, 6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings.  What is the net amount to be paid the employee? 
A. $1,470
B. $1,059.75
C. $1,381.80
D. $1,249.50

96. Payroll taxes levied against employees become liabilities  
A. the first of the following month
B. at the time the payroll is paid
C. when earned by the employee
D. at the end of an accounting period

97. The following totals for the month of June were taken from the payroll register of Arcon Company:
 

Salaries expense

$14,000

Social security and Medicare Taxes withheld

975

Income Taxes withheld

2,600

Retirement Savings

1,000

 

 

The entry to record the payment of net pay would include a  
A. debit to Salaries Payable for $14,000
B. Debit to Salaries Payable for $9,425
C. Credit to Salaries Expense for $9,425
D. Credit to Salaries Payable for $9,425

 

98. Which of the following will have no effect on an employee’s take-home pay? 
A. Social security tax
B. Unemployment tax
C. Marital status
D. Number of exemptions claimed

 

99. Which of the following are included in the employer’s payroll taxes? 
A. SUTA taxes
B. FUTA taxes
C. FICA taxes
D. all of the above

 

100. Most employers are required to withhold from employees for  
A. both federal and state unemployment compensation
B. only federal unemployment compensation tax
C. only federal income tax
D. only state unemployment compensation tax

 

 

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