ACT Comp Final Review

Ides receives 16 cents for every unit produced. Ides produces 2,976 pieces in a 43-hour workweek. For overtime, Ides is paid a sum equal to one-half the regular hourly pay rate multiplied by the number of overtime hours. Ides' total piecework and overtime earnings are

$492.77

Michael Mirer worked for Dawson Company for six months this year and earned $11,200. The other six months he earned $6,900 working for McBride Company (a separate company). The amount of FUTA taxes to be paid on Mirer's wages by the two companies is: (Round your answers to two decimal places, if necessary.) a. Dawson Company$fill in the blank 1b. McBride Company$fill in the blank 2

42 41.4

Stys Company's payroll for the year is $1,210,930. Of this amount, $510,710 is for wages paid in excess of $7,000 to each individual employee. The SUTA tax rate for the company is 3.2% on the first $7,000 of each employee's earnings. Round your answers to two decimal places. a. The amount of FUTA tax for the year is $fill in the blank 1.b. The amount of SUTA tax for the year is $fill in the blank 2.

4201.32 22407.04

Determine the income tax to withhold from the biweekly wages of the following employees (wage-bracket): Karen Overton (single), $900 wages Nancy Haller (married filing jointly), $1,000 wages Alan Glasgow (married filing jointly), $980 wages Joseph Kerr (single), $720 wages Ginni Lorenz (single), $580 wages *based on tables

43 5 2 25 11

Mary Matthews made $1,150 during a biweekly pay period only social security (fully taxable) and federal income taxes attach to her pay. Matthews contributes $100 each biweekly pay to her company's 401k. Determine Matthews take home pay if she is married filing jointly. (Use Wage Bracket Method) Round your answer to two decimal place. * Calculate FIT based on tables

975.9

Carla Maloney is a waitress who regularly receives $80 each week in tips and works 40 hours each week. The minimum gross weekly pay, excluding tips, that the restaurant could pay Maloney without violating the FLSA is

= [Number of hours each week x minimum hourly wage rate] - tips = [40 hours x $7.25] - 80 =$210

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. a percentage of the previous week's gross payroll. b. using the same amount as the prior month's adjustment. c. using the wages of the salaried workers only. d. collecting the timesheets for the days accrued. e. a percentage of the previous week's net payroll.

A

When making a payment of FUTA taxes, the employer must make the payment by the: a. end of the month after the quarter. b. same day of the FICA and FIT deposits. c. end of the following quarter. d. 15th of the month after the quarter. e. 10th of the month after the quarter.

A

Which of the following items would require an adjusting entry at the end of each accounting period? a. Vacation pay earned by employees b. Withholdings for a 401(k) plan c. Union dues withheld d. Garnishment for child support payments e. None of these choices are correct.

A

Which of the following types of payments are not taxable wages for federal unemployment tax? a. Retirement pay b. Dismissal pay c. Payment under a guaranteed annual wage plan d. Cash prizes and awards for doing outstanding work e. Bonuses as remuneration for services

A

If the employer has made timely deposits that pay the FUTA tax liability in full, the filing of Form 940 can be delayed until: a. December 31. b. March 31. c. February 10. d. February 15. e. February 1.

C

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? a. 20% b. 0% c. 90% d. 5.13% e. 6.2%

C

The FLSA requires that: a. employers use the continental time system to record all time worked by employees. b. employers use time cards to record the employees' time worked. c. employers keep records that show the hours each employee worked each workday and each workweek. d. employees sign each clock card. e. None of these choices are correct.

C

Which of the following bases for discrimination in employment practices is not covered in Title VII of the Civil Rights Act of 1964 as amended? a. National origin b. Religion c. Age d. Sex e. Color

C

Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience with the risk of unemployment? a. Voluntary contribution b. Title XII advances c. Experience-rating plan d. Pooled-fund laws e. None of these choices are correct.

C

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 20--. The latest date on which Ashe may file Form 941 (without incurring penalty) is: a. May 1. b. May 15. c. April 30. d. May 10. e. April 10.

D

In 2006, the garnishment that takes priority over all others, except bankruptcy orders is : a. a government student loan (up to $50,000) b. a creditor garnishment (up to 5 creditors) c. an administrative wage garnishment d. a child support order or a federal tax levy (whichever comes first) e. bankruptcy

D

Included under the definition of employees for FUTA purposes are: a. members of partnerships. b. student nurses. c. independent contractors. d. officers of a corporation. e. insurance agents paid solely on commission.

D

Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA taxes? a. Wages Expense b. Wages Payable c. SUTA Taxes Payable d. Payroll Taxes e. None of these choices are correct.

D

Carmen Gaetano worked 46 hours during this pay week. 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? a. $161.10 b. $50.70 c. $107.40 d. $26.85 e. $53.70

E

For FUTA purposes, an employer can be any one of the following except: a. an individual. b. a trust. c. a corporation. d. a partnership. e. All of these choices can be employers.

E

In January 2019, the minimum hourly wage was: a. $12.15. b. $9.35. c. $10.00. d. $8.15. e. None of these choices are correct.

E

The employee's earnings record provides information for each of the following except: a. determining when the accumulated wages of an employee reach cutoff levels. b. completing Forms W-2. c. preparing reports required by state unemployment compensation laws. d. preparing the payroll register. e. completing the journal entry to record the payroll.

E

The entry made at the end of the accounting period to record wages incurred but unpaid is: a.Wages ExpenseCash b.Wages ExpensePayroll TaxesWages Payroll c.Wages PayableCash d.Wages ExpenseFICA Taxes Payable—OASDIFICA Taxes Payable—HIFIT PayableWages Payable e.Wages ExpenseWages Payable

E

The taxes imposed under the Social Security Act consist of: a. taxes on the net earnings of the self-employed. b. OASDI and HI taxes. c. two taxes on employees. d. two taxes on employers. e. All of these choices are correct.

E

Which of the following is not required by the FLSA? a. Two weeks' vacation pay after one year of service b. Extra pay for work on holidays c. Restriction on hours worked by a 17-year-old worker d. All of these choices are required. e. None of these choices are required

E

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding? a. Employer-paid membership to a country club b. Flight on employer-provided airline c. Sick pay d. Personal use of company car e. All of these choices are taxable.

E

Jason Jeffries earned $10,200 while working for Brown Company. The company's SUTA tax rate is 2.9% of the first $7,000 of each employee's earnings. Compute the total unemployment taxes (SUTA and FUTA) that Brown Company should pay on Jeffries' earnings.$fill in the blank 1

245

Dee is paid $2,345 on November 8, 20--. Dee had cumulative gross earnings, including overtime pay, of $136,400 prior to this pay. Round your answers to the nearest cent. a. The amount of OASDI taxes to withhold from Dee's pay is: b. The amount of HI taxes to withhold from Dee's pay is:

A. 137700 (maximum) - 136400 (year to date pay) = 1300 = 1300*6.2% (.062) =80.6 B. 2345*1.45% (.0145) = 34

Jax Company's (a monthly depositor) tax liability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax) for July was $1,210. No deposit was made by the company until August 24, 20-- (9 days late). Determine the following: Note: Round your answers to the nearest cent and assume 365 days in a year. a. The date by which the deposit should have been made b. The penalty for failure to make timely deposit c. The penalty for failure to fully pay tax when due d. The interest on taxes due and unpaid (assume a 5% interest rate)

A. Monthly deposits are made by the 15th of the following month (unless day is on Sat or Sun or holiday then the following business day) = August 15 B. Penalty is based on how many days payment is late (double check to make sure percentage rate is still correct) 6-15 days late a 5% penalty = 1210*5% (.05) = 60.5 C. 1210*.5% (.005) = 6.05 D. 1210*5% (0.05)*9/365 = 1.49

FICA excludes from coverage all of the following kinds of employment except: a. services performed by a railroad worker for an employer covered by the Railroad Retirement Tax Act. b. babysitting service performed by a 35-year-old person who receives $40 in cash during the calendar quarter. c. federal government secretaries hired in 1990. d. service performed by a 16-year-old child in the employ of the mother. e. domestic service performed in a college sorority by a student.

C

In order to avoid a credit reduction for Title XII advances, a state must repay the loans by: a. the end of the year the credit reduction is scheduled to take effect. b. November 10 of the year the credit reduction is scheduled to take effect. c. the end of the third year after the year of the loans. d. the end of the year of the loans. e. June 30 of the year after the loans.

B

Medicare is a two-part health insurance program that was part of an amendment to what act? a. Affordable Care Act b. Federal Insurance Contributions Act c. Federal Income Tax Withholding Law d. Federal Unemployment Tax Act e. Fair Labor Standards Act

B

Voluntary contributions to a state's unemployment department are: a. sent directly to the IRS. b. designed to increase an employer's reserve account in order to lower the employer's contribution rate. c. returned to the employer at the end of the following year. d. capable of being paid at any time with no time limit. e. allowed in all states.

B

When recording the deposit of FUTA taxes owed, the proper entry is: a.FUTA Tax ExpenseCash b.FUTA Taxes PayableCash c.Payroll TaxesFUTA Taxes Payable d.FUTA Tax ExpenseFUTA Taxes Payable e.Payroll TaxesCash

B

Which of the following is not an expense of the employer? a. FICA tax—OASDI b. Union dues withheld c. FICA tax—HI d. SUTA tax e. FUTA tax

B

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips? a. The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. b. 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. c. Employers do not withhold FICA taxes on the tipped employees' reported tip income. d. Tips amounting to $10 or more in a calendar month must be reported by tipped employees to their employers. e. None of these statements are correct.

B

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday? a. Payroll Taxes b. Wages Expense c. Wages Payable d. Federal Income Taxes Payable e. None of these choices are correct.

B

A federal unemployment tax is levied on: a. employees only. b. both employers and employees. c. employers only. d. no one. e. government employers only.

C