Chapter 10 Quiz
An employee whose regular hourly rate is $8 and whose overtime rate is 1.5 times the regular rate worked 41 hours in one week. What is this employee's gross earnings for the weekly pay period?
$332. ( Gross earnings for this employee can be calculated as regular earnings + overtime earnings. This employee earned regular earnings of $320 (40 regular hours × $8 regular hourly rate). The employee's overtime hourly rate is $12 per hour ($8 regular hourly rate × 1.5). Therefore, this employee earned overtime earnings of $12 (1 overtime hour × $12). This results in gross earnings of $332 ($320 regular earnings + $12 overtime earnings) for the weekly pay period.
An employee whose regular hourly rate is $12 and whose overtime rate is 1.5 times the regular rate worked 43 hours in one week. In the payroll register, the employer should record overtime earnings of
$54. (This employee worked 3 overtime hours (43 total hours − 40 regular hours) during the pay period. The overtime hourly rate is $18 ($12 regular hourly rate × 1.5). Therefore, the overtime earnings are $54 (3 overtime hours × $18 overtime hourly rate).
How much social security tax is withheld from an employee who earns $3,400 during the current payroll period, and who has earned $131,900 during the year prior to the current pay period, given that the maximum earnings threshold for social security tax is $132,900?
$62. ( The portion of current period earnings that are subject to social security tax is $1,000 ($132,900 maximum earnings threshold for social security tax − $131,900 current payroll period earnings). Therefore, the social security tax for the period is $62 ($1,000 current payroll period earnings subject to social security tax × 6.2% social security tax rate).
Which of the following is not a component of the initial journal entry to record payroll?
A credit to salaries and wages expense
Which of the following statements is correct?
Disability benefits for the worker and the worker's dependents are provided by the Federal Insurance Contributions Act.
Which of the following statements is not correct?
The amount of social security tax withheld depends on an employee's gross earnings, marital status, and number of withholding allowances.
Which of the following statements about the payroll register is not correct?
The deductions are added to the gross earnings to compute Net Amount, which is the amount paid to each employee.
Which of the following statements is not correct?
To compute the Medicare tax to withhold from the employee's paycheck, multiply the net take-home wages by the Medicare tax rate of 1.45%.
Which of the following pieces of information is not required to use the wage-bracket table method of determining federal income tax withholding?
prior period earnings for the current year
All details related to an employee's earnings, deductions, and net pay throughout the year would be found in
the individual earnings record.
