accounting exam 3 set 3

What is (are) a good reason(s) for using a payroll bank account for payroll that is separated from your operating bank account?

All the choices are correct.

Which of the following is recorded on an individual earnings record?

All the choices are correct.

Stacy Carter worked 48 hours during the week ending November 17. Her regular rate is $9 per hour. Calculate her gross earnings for the week.

$468

What is "time and a half"?

150% times employee base rate of pay

What accounts are affected when payroll checks are written?

Cash is credited for net earnings.

How are social security benefits financed?

Employees and employers both fund social security.

How are unemployment insurance benefits financed?

Employers pay the entire tax based on an amount determined by state and federal governments.

Which one of the following is not a required deduction from payroll required by federal law?

FUTA tax

Who pays the social security tax?

both employee and employer

An individual earnings record is __________.

created for each employee

A person who is hired by a company and who is under the control and direction of the employer is called a(n) __________.

employee

The purpose of FUTA is to provide benefits for

employees who become unemployed.

Because salaried employees who hold supervisory or managerial positions generally are not subject to wage and hour laws, they are known as __________.

exempt employees

Federal law requires employers to withhold which of the following taxes from employee's pay?

federal income tax, social security tax, and Medicare tax.

What does being classified an "exempt" employee mean?

generally speaking, not eligible for any overtime pay

Which of the following affects the amount of Medicare tax to be withheld from an hourly rate employee's pay?

hours worked resulting in higher gross pay

Payroll deductions are recorded in a separate

liability account.

Which of the following payroll taxes is paid by both the employer and the employee?

medicare tax

Details related to all employees' gross earnings, deductions, and net pay for a period are found in the

payroll register.

Which factor(s) does not determine the amount of federal income tax to be withheld from an employee's earnings?

state where employee lives