Ch.9 Payroll Business math using technology

Net pay -deductions = gross pay

False - Gross pay = hours employee worked ×rate per hour

FICA stands for federal withholding tax.

False - FICA is short for federal insurance contribution act

The federal insurance contributions act funds the federal income tax program.

False - the federal insurance contributions act funds the Social Security program

FUT a tax is computed by the wage bracket table.

False - FUTA a is a flat zero. 6%

A married person will pay in more Social Security and Medicare tax than a single person.

False - a single person will pay in more Social Security and Medicare tax than a married person.

An employee's commission is always based on total dollar sales.

False - and employees commission is not always based on total dollar sales.

Being paid biweekly is the same as being paid semi monthly

False - being paid biweekly is the same as being paid 26 times a year, whereas by monthly means getting paid 24 times per year

The W - 4 is used strictly to calculate Social Security and Medicare taxes.

False - the W - 4 is used strictly to calculate withholding allowance

The number of dependents one claims does not affect the amount of Social Security and Medicare tax paid.

True

The higher the number of allowances claimed on a form W - four, the less in taxes will be taken out of once paycheck.

True - the higher number of allowances claimed on a form W - four, the less in taxes will be taken out of one to paycheck.

SUT a text has no maximum amount that can be paid in a calendar year

True- states also charge companies with a poor employment record a higher SUTA rate

Differential pay means that there is one fixed rate per unit that is produced.

False - the company determines the rate these employees make by the amount of units the employees produce at different levels of production.

The fair labor standards act entitles employees to time and a half over 36 1/2 hours.

False - the fair labor standards act entitles employees to time and a half over 40 hours.

There is a maximum amount of Medicare tax an employee can contribute to a calendar year.

False - there is not a maximum amount of Medicare tax and employee can contribute in a calendar year

In the portion formula, decommission a worker received would be the base.

False - in the portion formula, The commission a worker Reesie's would be the portion

A calendar year is July 1 to June 30.

False. A calendar year is January 1 to December 31

A self-employed person has at least three employees.

False. A self-employed person has one employee.

Overtime is always calculated at time and a half the regular rate.

False. Overtime is always calculated at least time and half the regular rate

A quarter is 13 weeks.

True

A variable commission scale means that for different levels of net sales there a different commission rates.

True

Exempt wages means not taxable wages.

True

Gross pay = hours worked ×rate per hour.

True

Straight piece rate pay provides a worker an incentive to produce more since pay is based on the number of units produced.

True

The FC a text now requires separate reporting for Social Security and Medicare.

True

The employer will match the employee Social Security and Medicare contribution.

True