Business Math: Ch. 9 Learnsmart

Terrence earns a $5,000 monthly salary plus a 3% commission on sales over $20,000. Terrence's sales were $18,000. What is Terrence's gross pay? A. $5,000 B. $540 C. $5,540

A. $5,000

The Fair Labor Standards Act (FLSA) indicates that employees covered under the law that work over 40 hours per week will receive an overtime rate of: A. 1 (1/2) times the regular rate B. 2 (1/2) times the regular rate C. 1 times the regular rate D. 2 times the regular rate

A. 1 (1/2) times the regular rate

How does a draw affect the amount paid to the employee? A. A draw is subtracted from the commission earned. B. A draw is added to the commission earned C. A draw does not impact the commission earned.

A. A draw is subtracted from the commission earned.

The SUTA tax: A. differs from state to state. B. always offers a merit system. C. does not have a wage base. D. is greater than 5.4%

A. differs from state to state.

Overrides are a commission that managers earn on: A. net sales of the people they supervise B. gross sales of other managers C. net sales of other managers D. gross sales of the people they supervise

A. net sales of the people they supervise

Juan had total sales of $72,000 and returns of $22,000. He earns 3% on the first $50,000 of the net sales, 4% on the next $10,000 and 5% on anything over $70,000. What are Juan's commission earnings? A. $2,500 B. $3,600 C. $1,500

C. $1,500

Joseph Carlyle produced 1001 units this pay period and earns piece rate on the following differential pay schedule. Units Produced | Amount per Unit 1-1000 |$.35 1001-1500 |$.40 over 1500 |$.45 A. $400.40 B. $350.35 C. $350.40

C. $350.40

T/F: Each pay period had its own FIT pay period table.

True

Payroll registers include the following columns of information a. Employee name b. Overtime earnings c. Employee's social security number d. Employee's spouse's name e. Cumulative earnings f. Gross pay g. Employee's address h. Regular earnings

a. Employee name b. Overtime earnings e. Cumulative earnings f. Gross pay h. Regular earnings

FICA includes which taxes: a. Social Security b. FIT c. Medicare d. SUTA e. FUTA

a. Social Security c. Medicare

In calculating FIT, the greater the number of allowances, the __________ the tax amount.

less

Overtime pay is found by multiplying regular hourly pay ______________ by ______________

rate; 1.5

Camille had previously earned $109,400 this year. During this pay period she earned an additional $7,500. (Use 110,100 as the current SS base) A. $700 B. $43.40 C. $6,800 D. $7,500 E. $108.75 1. Social Security taxable earnings 2. Social Security tax 3. Social Security exempt earnings 4. Medicare taxable earnings 5. Medicare tax

1. = A. 2. = B. 3. = C. 4. = D. 5. = E.

Jan earns 4% on net sales. This period she had sales of $200,000 and returns of $20,000. She also took an advance of $1,000. Match the amounts to the respective terms. 1. 4% 2. $1,000 3. $6,200 4. $7,200 5. $180,000 A. Commission rate B. Commission received C. Commission sales D. Net sales E. Draw

1. = A. 2. = E. 3. = B. 4. = C. 5. = D

Match the values with the respective terms. 1. 1.45% 2. 6.2% 3. $110,100 A. Social Security rate B. Medicare rate C. Wage base

1. = B. 2. = A. 3. = C.

Match the number of annual payments to the pay period. 1. Biweekly 2. Monthly 3. Semimonthly 4. Weekly A. 12 B. 26 C. 24 D. 52

1. = B. 2. = A. 3. = C. 4. = D.

Zene earns $.58 for each video console he assembles. This week he assembles 780 consoles. Match the amounts to the respective term. 1. $.58 2. 780 3. $452.40 A. gross pay B. units produced C. piece rate

1. = C. 2. = B. 3. = A.

Earnings for the year were $5,000. The FUTA rate is 6.2% and he company received a 5% SUTA credit. Match the amounts to the respective terms. 1. $5,000 2. 6.2% 3. 1.2% 4. $60 A. Unadjusted FUTA rate B. Adjusted FUTA rate C. FUTA tax amount D. Taxable earnings

1. = D. 2. = A. 3. = B. 4. = C.

Ace Manufacturing has unemployment taxable earnings this period of $20,000. The SUTA and FUTA rates are 5.4% and .8% respectively. The SUTA tax is: A. $1,240 B. $1,080 C. $160

B. $1,080

Hiero earns $17.50/hour and worked 41 hours this week. He is covered under the FLSA. How much is his regular pay? A. $17.50 B. $700 C. $717.50

B. $700

Which employee tax(es) are imposed on the employee? A. FUTA B. SUTA C. FICA

C. FICA

Manufacturers often use which type of pay as an incentive for workers to produce more? A. Hourly rate B. Overtime rate C. Piece rate

C. Piece rate

During January Mary earned $6,500. How much are her FICA taxes? A. $0 B. $94,25 C. $403 D. $497,25

D. $497,25 all earnings are taxable for both SS and Medicare

The W-4 form is used to collect information needed to calculate which tax? A. FUTA B. Social Security C. Medicare D. Federal Income Tax

D. Federal Income Tax

T/F: The Fair Labor Standards Act (FLSA) requires that all employees receive time-and-a-half for work excess of 40 hours in a week.

False

When 40 or less hours were worked in a week, gross pay is found by multiplying regular ____________ worked by ____________ per hour.

hours; rate