payroll final
Which of the following is not part of the social security program?
Federal Income Tax Law
Which of the following forms is used to report the amount of distributions from pension and retirement plans?
Form 1099-R
Which of the following statements does not describe an employee's FICA taxes and withholdings?
The employee's liability for the FICA taxes continues even after the employer has withheld them.
ERISA provides for full vesting of the employer's contributions in three years or gradually over six.
True
Employers not subject to Title VII coverage may come within the scope of the Civil Rights Act by reason of a contract or subcontract involving federal funds.
True
Form I-9 must be completed by each new hire.
True
In order for the Walsh-Healey Public Contracts Act to protect laborers for contractors who furnish materials to any agency of the United States, the contract amount must be at least $10,000.
True
Institutions of higher education are extended coverage under FLSA without regard to their annual sales volume
True
Nondiscretionary bonuses are part of the determination of the regular rate of pay.
True
One of the provisions of coverage of the Civil Rights Act is that the employer must have 15 or more workers.
True
One of the tests to be met for the white-collar exemption for an executive is to be paid a salary of at least $455 per week.
True
The current minimum wage set by the Fair Labor Standards Act is $7.25 per hour
True
The employer is required by the FLSA to display a poster that informs employees of the provisions of the law.
True
The tax paid to the federal government for unemployment taxes is used for paying state and federal administrative expenses of the unemployment program.
True
Under ERISA, if there is a pension plan, every employee is eligible after reaching age 21 or completing one year of service, whichever is later.
True
Under ERISA, vesting conveys to employees the right to share in a retirement fund in the event they are terminated before the normal retirement age
True
Under the Civil Rights Act of 1964, the U.S. government is classified as an exempt employer.
True
Under the Family and Medical Leave Act, employers can exempt an employee who has not worked for the employer for at least one year and has worked for the company for at least 1,250 hours in the last year.
True
Under the Federal Personal Responsibility and Work Opportunity Reconciliation Act, every employer is required to report the name, address, and social security number of each new employee to the appropriate state agency.
True
Which of the following is not an expense of the employer?
Union dues withheld
Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?
Wages Expense
Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips
When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment.
A company must withhold federal income taxes from payments made to independent contractors in which of the following cases?
When the contractor has not provided a taxpayer identification number and the contract is $600 or more.
In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:
a percentage of the previous week's gross payroll
The taxes imposed under the Social Security Act consist of:
all of the above
Under individual employee coverage, the worker is covered by the FLSA if:
all of the above
The employee's earnings record provides information for each of the following except
completing the journal entry to record the payroll.
Voluntary contributions to a state's unemployment department are:
designed to increase an employer's reserve account in order to lower the employer's contribution rate.
The FLSA requires that:
employers keep records that show the hours each employee worked each workday and each workweek.
A federal unemployment tax is levied on:
employers only.
"Dumping" is legal in all but a few states.
false
A person holding two jobs may have additional income tax withheld by increasing the number of withholding allowances claimed.
false
Advance payments for work done in the future are not taxable wages for FUTA purposes.
false
All interns in the for-profit sector are exempt from the minimum wage and overtime requirements of the FLSA.
false
All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year.
false
An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances
false
Currently, none of the states imposes an unemployment tax on employees
false
Domestics are excluded from coverage under the FLSA individual employee coverage.
false
Employees of a state government hired before January 1, 1986, and covered by a public retirement plan, are exempt from FICA coverage.
false
Engaged to wait" and "waiting to be engaged" are both considered work time.
false
Every state allows employers to make e-payment options as a condition of employment.
false
Exempt educational assistance includes payments for tools that employees keep after they complete a course of instruction.
false
FIT Payable is a liability account used to record employees' withheld federal income tax and also the employer's match of that tax.
false
FUTA Taxes Payable is an expense account in which are recorded the employer's federal unemployment taxes.
false
FUTA tax deposits cannot be paid electronically
false
For state income tax purposes, all states treat 401(k) plan payroll deductions as nontaxable.
false
Form 940 must be mailed to the IRS by January 15.
false
If a company is liable for a credit reduction (due to Title XII advance), this extra tax must be paid along with each of the required deposits made during the year.
false
If an employee works in more than one state, the employer must pay a separate SUTA tax to each of those states in which the employee earns wages.
false
In calculating a "gross-up" amount of a bonus payment, an employer does not use the OASDI/HI tax rates in the formula.
false
In computing their own FICA taxes, employers may exclude the total amount of tips reported to them by their tipped employees.
false
In the case of a part-time employee, the employer pays a FUTA tax on only the first $3,500 of earnings (one-half the regular limit).
false
Noncash items given to household employees by their employers are subject to FICA tax.
false
Posting to the general ledger for payroll entries is done only at the end of each calendar year
false
Service charges that are passed on to the employee by the employer are not part of the disposable earnings subject to garnishment.
false
Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.
false
Since the credit against the FUTA tax (for SUTA contributions) is made on Form 940, the employer's payroll tax entries should include the FUTA tax at the gross amount (6.0%).
false
Tax withholdings from employees' pays reduce the amount of the debit to Salary Expense in the payroll entry.
false
The FLSA sets no limits upon the number of hours that a 15-year-old person may work so long as the overtime pay provisions are met
false
The Federal Insurance Contributions Act levies a tax upon the gross earnings of self-employed persons.
false
The Social Security Act does not require self-employed persons to have an account number.
false
The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.
false
The special withholding allowance may be claimed only by those employees who do not itemize deductions on their income tax returns.
false
The wage and salaries expense account is an operating expense account debited for total net pay each payroll period.
false
There is no limit to the amount of educational assistance that is exempt from federal income tax withholdings.
false
Under the Consumer Credit Protection Act, disposable earnings are the earnings remaining after any deductions for health insurance.
false
Under the Uniform Unclaimed Property Act, any unclaimed paychecks must be turned over to the state after the next payday.
false
Unemployment taxes (FUTA and SUTA) do not have to be paid by an employer who has only part-time employees.
false
A personal allowance:
may be claimed to exempt a portion of the employee's earnings from withholding.
If an employee works two jobs at two different wage rates for the same employer during the same pay week, any overtime pay must be calculated by using an overtime hourly rate of:
none of the above
The FICA tax rates for the self-employeds are:
none of the above
In January 2016, the minimum hourly wage was:
none of the above.
Workers exempt from all of the FLSA requirements include:
none of the above.
FICA defines all of the following as employees except:
partners
Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA taxes?
payroll taxes
Those tasks that employees must perform and which include any work of consequence performed for the employer are known as:
principal activities
The person who is not an authorized signer of Form 940 is:
the accountant from the company's independent auditing firm.
An aspect of the interstate reciprocal arrangement concerns:
the transfer of an employee from one state to another during the year.
Pre-hire questions pertaining to religion, gender, national origin, or age are allowed if:
these factors are bona fide occupational qualifications for the job.
FICA defines all of the following as wages except:
total cash tips of $15 received by a tipped employee in May.
A college may employ its own full-time students at 85 percent of the minimum wage.
true
A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.
true
A waiter receives cash tips amounting to $120 in a month. The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.
true
A worker hired by the federal government in 2016 is covered under FICA.
true
All employers of one or more persons must file an application for an identification number.
true
An employee submits an invalid Form W-4 to the employer and does not replace it with a valid form. The employer should withhold federal income taxes at the rate for a single person claiming no exemptions.
true
An employer can credit up to $5.12 of a tipped employee's minimum wage as coming from the tips received by that employee.
true
An exception to the protection that the Age Discrimination in Employment Act provides for all workers over 40 involves executives who are 65 or older and who have held high policy-making positions during the two-year period prior to retirement.
true
Before any federal income taxes may be withheld, there must be, or must have been, an employer-employee relationship.
true
By completing Form W-4P, a person can elect to have no income tax withheld from the annuity amounts the person receives.
true
Christmas gifts, excluding noncash gifts of nominal value, are taxable wages for unemployment purposes.
true
Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll.
true
Directors of corporations who only attend and participate in board of directors' meetings are not covered as employees under FUTA.
true
Educational assistance payments made to workers to improve skills required of their jobs are nontaxable for unemployment purposes.
true
Employees are liable for their FICA taxes only until the taxes have been collected from their pay by their employer.
true
Employees may use Form 4070 to report the amount of their tips to their employers.
true
Employees must be given Form W-2 on or before January 31 following the close of the calendar year.
true
Employees who are receiving remedial education may work up to 10 hours overtime each week without receiving overtime pay.
true
FICA includes partnerships in its definition of employer.
true
Form 941 is used by employers to make their quarterly return of FICA taxes and withheld income taxes.
true
Form W-3 is filed with the Social Security Administration when transmitting information returns on Forms W-2.
true
If an employee has more than one employer during the current year, the taxable wage base applies separately to each of those employers, unless one employer has transferred the business to the second.
true
If married employees do not claim their marital status on Form W-4, the employer must withhold according to the withholding tables for single employees
true
In order to obtain the maximum credit allowed against the federal unemployment tax, the employer must have paid its SUTA contributions by the due date of Form 940.
true
In some states, employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund.
true
In the IRA form of the Simple Retirement Account, employers must match the employee's contribution, dollar-for-dollar, up to 3% of the employee's compensation.
true
Monthly depositors are required to deposit their taxes by the 15th day of the following month.
true
Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts.
true
Peter, age 17 and employed by his family-owned corporation, is covered under FICA.
true
Self-employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes.
true
Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.
true
Since the FUTA tax is a social security tax, it can be charged to the same expense account as the other payroll taxes on the employer, the payroll taxes account.
true
The FICA tax rates and taxable wage bases are exactly the same for the employee and employer when the employee makes $200,000 or less.
true
The IRA format of the SIMPLE plan allows employees to make tax-free contributions of up to $12,500
true
The employees of a semiweekly depositor are paid every Tuesday. The accumulated payroll taxes must be deposited on or before the following Friday
true
The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA (OASDI and HI), FUTA, and SUTA taxes.
true
The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.
true
The payroll taxes incurred by an employer are FICA, FUTA, and SUTA
true
The requirements for depositing FICA taxes and income taxes withheld from nonagricultural employees' wages vary according to the amount of such taxes reported during a "lookback period."
true
The total of the net amount paid to employees each payday is credited to either the cash account or the salaries payable account.
true
Tips received by employees are not included as disposable earnings subject to garnishment
true
To calculate the overtime pay rate for a commissioned worker, divide the total commission by the hours worked, and then take one-half of the resulting rate of pay.
true
Under the federal income tax withholding law, a definition of employee excludes partners.
true
Under the piece-rate system, workers are paid according to their output
true
Union Dues Payable is a liability account credited with the deductions made from union members' wages for their union dues.
true
When withheld union dues are turned over to the union by the employer, a journal entry is made debiting the liability account and crediting the cash account.
true
Even if the duties of depositing the FUTA taxes and filing Form 940 have been outsourced, the employer is still the responsible party.
true
Carmen Gaetano worked 46 hours during this payweek. He is paid time-and-a-half for hours over 40 and his pay rate is $17.90/hour. What was his overtime premium pay for this workweek?
$53.70
Barr fails to make a timely deposit of FICA taxes and withheld income taxes until five days after the due date. The penalty facing Barr is:
2% of the undeposited taxes.
Under the continental system of recording time, 9:20 p.m. is recorded as:
2120
If the employer is tardy in paying the state contributions, the credit against the federal tax is limited to what percent of the late payments that would have been allowed as a credit if the contributions had been paid on time?
90%
. Abel works a 37-hour week at $10.75 an hour. Overtime hours are paid at 1 times the regular rate.
Abel's regular weekly earnings are
Which of the following cannot be included in a cafeteria plan?
Educational assistance
A discretionary bonus is included in an employee's regular rate of pay.
False
All states have set their minimum wage to be the same as the federal government.
False
Hourly employees who take work home without the permission of the employer do not have to be paid for the work done at home.
False
If a business does not meet the enterprise coverage test, none of its workers qualify for individual employee coverage.
False
Only six states do not impose a state unemployment tax on employers in their state.
False
The FLSA imposes no recordkeeping requirements on employers.
False
The FLSA provides health insurance for the aged and disabled (Medicare).
False
The FLSA requires that employees be given the day off on all Monday holidays or be paid time and one-half for those Mondays
False
The FLSA requires that workers receive overtime pay of twice the employees' regular hourly rate for hours worked on Sunday.
False
The amounts needed for the payroll entries in the journal come from the employee's earnings record.
False
The total cost of workers' compensation insurance is borne by the employees.
False
Title VII of the Civil Rights Act protects all employees from arbitrary dismissal
False
Under the Federal Insurance Contributions Act, the Medicare portion of the tax is only paid by the employer.
False
Which of the following is not a factor considered in determining coverage of interstate employees?
Location of company's payroll department
The Age Discrimination in Employment Act provides protection to virtually all workers over the age of:
No age Limit
Which of the following types of payments are not taxable wages for federal unemployment tax?
Retirement Pay
