Income Topic Test

The earnings of two employees are given below: Employee A: 6% commission on all sales Employee B: 4% commission on the first $80,000 and 8% on anything over $80,000 How much more does a straight commission employee make than the graduated commission employee for sales of $100,000? a. $1,200 b. $1,600 c. $2,000 d. $3,200

A

If total employee benefits are calculated as a percentage of their gross pay, which of the following employees receives the largest percentage of their gross pay in employee benefits? a. Employee A: gross pay $32,600 , total job benefits $33,600 b. Employee B: gross pay $32,900 , total job benefits $34,000 c. Employee C: gross pay $33,400 , total job benefits $33,900 d. Employee D: gross pay $33,700 , total job benefits $34,700

B

Tamara earns her living as a salary plus commission employee. Her annual salary is $48,000, and she earns 4% commission on all sales she makes. If Tamara wants to make a total of $6,000 this month, how much in sales does she need to have? a. $30,000 b. $50,000 c. $100,000 d. $150,000

B

Which of the following statements is always true? a. Workers being paid on commission make less money than if they are salaried. b. Workers being paid on commission have a salary that varies based on their performance. c. Workers being paid on commission are stressed over the amount of earnings they will have. d. Workers being paid on commission increase the accounting costs of the employer.

B

Martha earned a gross pay of $1,215.60 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social security tax deducted from Martha's gross pay. a. $7.54 b. $65.37 c. $75.37 d. $75.40

C

Max has a monthly salary of $1,100 and also earns 7.5% commission on his sales. If Max had $43,000 in sales last month, what were his total earnings for the month? a. $3,225 b. $4,050 c. $4,325 d. $5,150

C

Who had the largest dollar amount in sales for the month of January? a. The salary plus commission employee. b. The straight commission employee. c. The graduated commission employee. d. They each had the same dollar amount in sales.

C

A single person earns a gross biweekly salary of $840 and claims 5 exemptions. How will federal taxes affect his net pay? a. Federal taxes will not affect the net pay. b. Net pay will increase $11 from the gross pay. c. Net pay will decrease $11 from the gross pay. d. Net pay will decrease $13 from the gross pay.

D

A statement of an employee's biweekly earnings is given below. Earnings Deductions Week Ended Regular FED. SOC. MED STATE WITH. WITH. CARE. WITH. NET PAY 9/10 $_____ $98.00 $52.88 $12.37 $22.54 $667.17 What is the employee's gross pay? a. $818.05 b. $830.42 c. $840.59 d. $852.96

D

Luce is single and making $763 biweekly. She claims no federal withholding allowances. If the state tax is 19% of the federal tax, how much in state tax does Luce contribute? a. $12.92 b. $15.13 c. $15.77 d. $16.34

D

Which of the following is always a true statement? a. total employee benefits - job expenses = total employment compensation b. gross pay + total job benefits = total employment compensation c. gross pay - job expenses = total employment compensation d. total job benefits - job expenses = total employment compensation

D

Which of these is an example of an employer using benefits to encourage employees to stay with the company? a. The employer provides paid time off, which the employee must use in the calendar year. b. The employer provides benefits which are in line with the standard benefits provided by other employers in the industry. c. The employer matches the amount of money that the employee pays towards Social Security. d. The employer offers stock options, which require the employee to work for a specific amount of time before they vest.

D

Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 19% of federal tax, determine if Juanita's net pay is correct. Earnings Deductions Week Ended Regular FED. SOC. MED STATE WITH. WITH. CARE. WITH. NET PAY 11/17 $1,020.00 $107.00 $63.24 $14.79 $20.33 $814.64 Choose the true statement below. a. The net pay is correct. b. The Social Security tax is not correct. c. The Medicare tax is not correct. d. The state tax is not correct.

A

Leroy's total job benefits were $50,150 last year. His total job expenses for traveling and for professional development for the year were $3,500. Which of the following represents his total employment compensation? a. $46,650 b. $47,650 c. $50,150d.$53,650

A

Which of the following employees derives their income from a fee for the items sold? a. commission b. piece rate c. salaried d. tip

A

A restaurant worker earns a set amount per hour from their employer. They also receive tips from customers. Their earnings most closely resemble those of which of the following? a. An employee working on straight commission b. An employee working on commission plus salary c. An employee working on a piece-rate basis d. An employee working on a fixed salary

B

An employee has an annual salary of $51,300. They receive $2,830 in health insurance and $4,600 in paid time off per year. They drive their personal vehicle for work which costs them $600 per month, but the company reimburses them $0.54 per mile for the total work miles driven. If the employee drives 36,000 miles for work for the year, what will be their total employment compensation? a. $70,740 b. $70,970 c. $77,570 d. $78,170

B

Use the following federal tax table for biweekly earnings of a single person to help answer the question below. Mario has gross biweekly earnings of $784.21. By claiming 1 more withholding allowance, Mario would have $13 more in his take home pay. How many withholding allowances does Mario currently claim? a. 3 b. 4 c. 5 d. 6

B

Which of the following employees has the greatest total employee compensation? a. Employee A: total job benefits $68,100 and total job expenses $100 b. Employee B: total job benefits $68,400 and total job expenses $300 c. Employee C: total job benefits $68,700 and total job expenses $800 d. Employee D: total job benefits $69,000 and total job expenses $1,000

B

Gary earned a gross pay of $1,047.30 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social Security tax deducted from Gary's gross pay. a. $6.49 b. $8.38 c. $64.93 d. $83.78

C

Athena priced each of her art pieces at the same price and displayed them for sale in two different art shows. She made $495.80 from the first art show and $371.85 from the second show. If Athena sold 7 pieces of art, what price did each piece sell for? a. $109.52 b. $109.66 c. $123.81 d. $123.95

D

If gross pay increases by $500, total employee benefits increase by $200 and total job expenses decrease by $300, then total employment compensation _____. a. increases by $400 b. increases by $700 c. increases by $800 d. increases by $1,000

D

Last year Lenny had an annual earned income of $58,475. He also had passive income of $1,255, and capital gains of $2,350. What was Lenny's total gross income for the year? a. $58,475 b. $59,730 c. $60,985 d. $62,080

D

Mikah invented and patented a new product which sells in local department stores. This is an example of _____ income. a. capital gains b. earned c. hourly d. passive

D

Trevor's total employment compensation is $33,500. If Trevor has no job expenses and his gross pay is $28,600, then his total employee benefits are _____% of his gross pay. a. 4.9 b. 8.5 c. 14.6 d. 17.1

D