Question :
Multiple Choice Questions
31. Which of the following statements not correct? A. The amount : 1202638
Multiple Choice Questions
31. 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.
32. 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.
33. Which of the following statements is 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. All of the above are correct.
34. 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
35. For which of the following taxes is there no limit on the amount of annual earnings subject to the tax?
A. Federal unemployment compensation tax
B. Social Security tax
C. Federal income tax
D. State unemployment compensation tax
36. Which of the following is NOT typically an employee payroll withholding?
A. federal income taxes
B. state unemployment taxes
C. union dues
D. medical insurance
37. 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.
38. 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.
39. 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.
40. Salespeople who are paid a percentage of net sales are paid on
A. commission basis.
B. salary basis.
C. hourly-rate basis.
D. piece-rate basis.
