Terms
A federal tax paid for old-age, survivors, and disability insurance.
Social Security Tax
Who is responsible for paying social security and Medicare taxes?
A) Only the employee
B) Only the employer
C) Both the employee and the employer
D) The federal government
C) Both the employee and the employer
How is net pay calculated?
A) Total earnings + Total deductions
B) Total earnings - Total deductions
C) Total earnings x Tax rate
D) Gross pay - FIT only
B) Total earnings - Total deductions
Which are two factors used to determine the amount of federal income tax withheld from an employee’s earnings?
A) Age and gross pay
B) Marital status and number of withholding allowances
C) Years of service and education level
D) Job title and department
B) Marital status and number of withholding allowances
A qualified retirement plan that allows tax-free withdrawals from the account.
A: Traditional IRA
B: Pension
C: Roth IRA
D: 401k
C: Roth IRA
What would likely happen to an employee’s federal income tax withholding amount if they increase the number of withholding allowances claimed on their W-4?
The amount withheld would decrease.
An employee earns 900 in gross pay and has no pretax deductions. What will the employee pay in Social Security and Medicare?
900 x .062 = 55.80
900 x .0145 = 13.05
Using the Married Persons tax table, what is the federal income tax withholding for an employee earning $2,200.00 who claims 0 withholding allowances?
$223
A method of paying an employee based on the amount of sales the employee generates.
Commission
Employees paid hourly can earn over time by working more than 40 hours a week OR _____________
Employees paid hourly can earn over time by working more than 40 hours a week OR _____________
Reminder: Overtime hours do not count toward the 40 regular hours for the week. Only regular hours are counted when determining whether the employee has exceeded 40 hours.
An employee works 42 hours during the week at $18 per hour. Calculate regular and overtime pay for the employee.
Regular Pay = $720
Overtime rate = $27
Overtime hours = 2
Overtime pay = $54
Using the Single Persons tax table, what is the federal income tax withholding for an employee earning $1,025.00 who claims 2 withholding allowances?
$62
If a company switches from a biweekly pay period to a semimonthly pay period, how would the number of paychecks per year change?
Biweekly: 26 paychecks per year
Semimonthly: 24 paychecks per year.
A business form used to summarize the earnings, deductions, and net pay of all employees for one pay period is the _________ _________
payroll register
Clara worked the following hours this Thursday. Calculate the amount of regular and overtime hours works. Round to the nearest 15.
Morning: 8:05 - 11:01
Afternoon: 1:01 - 4:45
Evening: 6:33 - 11:00
Morning: 8:05 - 11:01 --- 3 Hours
Afternoon: 1:01 - 4:45 -- 3.75 Hours
Evening: 6:33 - 11:00 -- 4.5 Hours
Total: 11 Hours and 15 Minutes (11.25 hrs)
Regular: 8
Overtime: 3.25
Contributions to which of these retirement plans are deducted from earnings before payroll taxes are calculated?
A) Roth IRA
B) 401(k) and IRA
C) Health Insurance
D) Social Security
B) 401(k) and IRA