Question : Multiple Choice Questions 25.Which of the following statements not correct? A. The amount : 1168906

 

Multiple Choice Questions 

25.Which of the following statements is not correct?   

A. The amount of social security tax withheld depends on an employee’s gross earnings, marital status, and number of withholding allowances.

 

B. Federal law requires that social security, Medicare, and federal income taxes be deducted from the gross pay of most employees.

 

C. Medicare taxes are levied in an equal amount on both employers and employees.

 

D. Once an employee’s year-to-date wages reach a certain amount prescribed by law, social security tax is no longer withheld.

 

 

 

 

26.Identify the statement below that is not true regarding social security tax.   

A. Both the employee and the employer pay an equal amount of social security tax on the employee’s wages.

 

B. The social security tax provides benefits for retirement as well as worker disability.

 

C. Social security is sometimes called FICA.

 

D. In any given year, there is no limit on the amount of wages subject to social security tax.

 

 

 

 

27.Which of the following statements is correct?   

A. A company is required to withhold various employee taxes from amounts paid independent contractors.

 

B. The accountant who performs the independent audit for a company is an employee of the company.

 

C. All employees must be paid at the minimum wage rate set by the Fair Labor Standards Act.

 

D. Disability benefits for the worker and the worker’s dependents are provided by the Federal Insurance Contributions Act.

 

 

 

 

28.Which of the following statements is not correct?   

A. The FUTA tax provides benefits for employees who become unemployed.

 

B. The federal unemployment tax rate can be reduced by the rate charged by state for the state unemployment tax.

 

C. The earnings base for the federal and state unemployment taxes are the same, the first $7,000 of an employee’s earnings for the year.

 

D. The SUTA tax protects employees against losses from job-related injuries or illnesses.

 

 

 

 

29.The employer records the amount of federal income tax withheld from employees as   

A. Income Tax Expense.

 

B. Employee Federal Income Tax Payable.

 

C. Social Security Tax Expense.

 

D. Social Security Tax Payable.

 

 

 

 

30.Federal law requires that the employer withhold _________ from the employee’s pay.   

A. federal income tax, social security tax, Medicare tax, and FUTA

 

B. federal income tax, social security tax, and Medicare tax

 

C. federal income tax, social security tax, Medicare tax, and state and local taxes

 

D. Federal and state income tax, social security tax, Medicare tax, and FUTA

 

 

 

 

31.An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week. In the payroll register, the employer should record an overtime premium of   

A. $440.

 

B. $220.

 

C. $20.

 

D. $5.

 

 

 

32.An employee whose regular hourly rate is $20 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week. In the payroll register, the employer should record an overtime premium of   

A. $880.

 

B. $440.

 

C. $120.

 

D. $40.

 

 

 

33.An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 48 hours in one week. In the payroll register, the employer should record an overtime premium of   

A. $480.

 

B. $240.

 

C. $80.

 

D. $40.

 

 

 

34.Salespeople who are paid a percentage of net sales are paid on a(n)   

A. commission basis.

 

B. salary basis.

 

C. hourly-rate basis.

 

D. piece-rate basis.