Final
Al works in the warehouse for his company and receives $12.75/hour. He occasionally works in the Quality Assurance (QA) department as a receiving clerk and earns a 15% differential for hours worked there. During a two-week pay period, he worked 72 hours in the warehouse and 12 hours in the QA department. He worked all overtime hours in the warehouse. Standard workweek has 40 hours. What is his gross pay for the pay period?
$1,119.45
Andre works for a bakery as a cake decorator and receives a base annual salary of $30,000 (paid weekly) as well as piece-rate pay of 25% of the retail price for any wedding cake that he decorates. His piece-rate earnings are totaled on a monthly basis and are paid on the first pay date of the following month. During the month of June, he decorated eight wedding cakes with a total retail value of $2,650. What is Andre's gross pay for the first week in July?
$1,239.42
Daanyal is a salaried nonexempt employee who is married with two dependents and earns $34,000 per year. During a biweekly pay period, he worked 88 hours. His standard workweek is 40 hours. What is Daanyal's gross pay for the period?
$1,503.85
Maya is compensated using a salary-plus-commission basis for her work. Her annual base salary is $32,000. During a semimonthly pay period she made $18,500 in sales, for which she receives a 2% commission. Her gross pay for the semimonthly period is ________.
$1,703.33
Martha is a regional supervisor who earns a base salary of $36,600 per year plus a 1% commission on all service contracts that she sells to existing customers. The company pays salaries on a semimonthly basis and contract commissions on a quarterly basis. As of September 30, Martha had made $39,200 in contract sales for the third quarter. What will be her gross pay on her next pay date?
$1,917.00
Allen is an employee of the foreign subsidiary of a United States based company who lives and works in the United Kingdom. According to FATCA, how much of his wages may Allen exclude from United States' taxes, according to 2020 guidelines?
$107,600
Weishan is a full-time student at a vocational school where he is learning automotive repair. He works for a local car repair garage and works 21 hours per week. The minimum wage is the same as the federal minimum wage. His gross pay per week is ________.
$114.19
Robin, 18 years of age, is an hourly worker in her college's bookstore in Washington State. She works 37 hours during a two-week pay period in her second month of work for the bookstore. The minimum gross pay that she may receive for that two-week period is ________.
$157.25
A nonexempt, salaried worker who received $34,500 in annual compensation for a 40-hour standard workweek has an hourly rate of ________.
$16.59
Arnelle is in her third month of work for her employer. She is 18 years of age. Her working hours, computed on a quarter-hour basis, were as follows for the current weekly pay period: Day Hours Minutes Monday. 8 15 Tuesday. 7 45 Wednesday 7. 30 Thursday. 8. 15 Friday. 8. 15 Arnelle receives the minimum wage, according to the 1996 FLSA Amendment. What is her gross pay for the week using actual hours?
$170.00
During his first month of employment, Alix took a draw of 5% against his minimum sales amount of $15,000 in monthly sales that must be deducted from his pay during the first month that he reaches his minimum sales amount. He receives $27,000 annually in base salary plus a 5% commission on his sales. He receives his base salary on a semimonthly basis and receives his commissions on the final pay date of each month. During his second month of employment, Alix sold $41,000 of equipment. What is Alix's gross pay for the end of the second month of employment?
$2,425.00
Indra is an employee who is required to be on-call at her employer's site once per month for eight hours. She earns a salary of $58,750 per year for a 45-hour workweek and is paid biweekly. What is Indra's gross pay for a pay period that includes on-call time?
$2,460.47
Huynh is a piece rate worker who creates custom molds for a plastics manufacturer. During a 40-hour workweek, he created 22 molds at a piece rate of $38.25 per mold. His hourly rate during the workweek is ________.
$21.04
Taylor is an outside salesperson for a firm in Idaho. She earns a 10% commission on all sales she makes. During a one-week pay period, she made $3,000 in sales. What is her gross pay? How much does her employer need to contribute toward her pay to meet FLSA standards?
$300; $0
Tony is a salaried, nonexempt employee who earns $43,400 for a standard 40-hour workweek. During a biweekly pay period, he worked 3.0 hours overtime. What is his overtime-hourly rate? (Round to the nearest cent.)
$31.31 per hour
Diane is a salaried, nonexempt worker with a standard workweek of 40 hours. During the last weekly pay period, she earned $148.24 in overtime pay for 5 hours overtime. What is her annual salary?
$41,112
Breon works as a clerk in the human resources department for her company for which she receives an hourly rate of $12.50. Occasionally she fills in for the receptionist at the front desk and receives a $1.50 per hour differential. During a weekly pay period, she worked 35 hours in the human resources department and 5 hours at the front desk. What is Breon's gross pay for the week?
$507.50
Cyrus is a tipped employee in Illinois. He is single with one dependent and the minimum cash wage in Illinois is $4.95 per hour for a 40-hour workweek. The tip credit in Illinois is $3.30 per hour (i.e., the minimum wage in Illinois is $8.25 per hour), and tips are NOT included in overtime calculations. During a one-week period, Cyrus worked 52 hours and earned $180 in tips. What is his gross pay?
$526.50
Lawrin is a real-estate salesperson whose compensation is commission-only. She earns a 3% commission on the sale price of each house that she sells and receives 1.5% commissions at the end of each month (the broker retains the rest per the employment agreement). During the month of July, Lawrin sold two houses totaling $426,560. What is her gross pay for the month of July?
$6,398.40
Brittany is a full-time college student and is 21 years of age. Her employer has the option to pay her less than the Federal minimum wage. What is the minimum hourly rate that Brittany may receive?
$6.16 per hour
Adam is a nonexempt employee who is single with one dependent and earns $15 per hour and has a standard 40-hour workweek. During a weekly pay period, he worked 46 hours. What is Adam's gross pay for the period?
$735.00
Joanna, a salaried nonexempt employee, earns a salary of $38,950 for a standard 37.5-hour workweek and is paid weekly. During a weekly period, she worked 6 hours of overtime. Her gross pay for the week would be________.
$928.81
Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes? - An increase in legal proceedings initiated by employees. - Federal penalties for not remitting all taxes due. - Erosion of available cash because of overpayments to employees. - Increased stakeholder approval due to employee overpayments.
- An increase in legal proceedings initiated by employees. - Federal penalties for not remitting all taxes due. - Erosion of available cash because of overpayments to employees.
Which of the following is a purpose of new hire reporting? - Child support obligations tracking - COBRA benefits administration - Immigration agency tracking - Communications of ethics violations for clerical workers
- Child support obligations tracking - COBRA benefits administration - Immigration agency tracking
Multistate employers must do which of the following for new hire reporting? - File a report with the state offices for the employee's state of residence. - File a report with the IRS since they have employees in multiple states. - Designate which state will receive their new hire reporting. - File a new-hire report with both the state that contains the firm's headquarters and the state that is the employee's primary residence.
- File a report with the state offices for the employee's state of residence. - Designate which state will receive their new hire reporting. - File a new-hire report with both the state that contains the firm's headquarters and the state that is the employee's primary residence.
Tetsuko is a surgical resident at a busy metropolitan hospital. She regularly works 24-48 hour shifts as a part of her duties. What must the employer do, according to the FLSA? - Give Tetsuko additional time off after a long shift. - Give Tetsuko appropriate meal breaks. - Give Tetsuko a minimum of 5 hours sleep time per 24 hours of the shift. - Give Tetsuko time to sleep and deduct those hours from her pay.
- Give Tetsuko appropriate meal breaks. - Give Tetsuko a minimum of 5 hours sleep time per 24 hours of the shift.
Which of the following factors assist employers in determining employee pay rates? - Industry benchmarks - Employee skill - Employee age - Company location
- Industry benchmarks - Employee skill - Company location
Which of the following is a necessary element in an accounting system? - Audit control - Audit review - Internal review - Internal control
- Internal review - Internal control
Which of the following is(are) payroll-related issues that large companies may experience? - Increased task variation. - Multiple departments. - Homogeneous workforce. - Geographic dispersion.
- Multiple departments. - Geographic dispersion.
Susan travels among client sites as a routine part of her employment. Travel to her first customer site and from the last customer site to her home are not compensated. Under which of the following circumstances will she be compensated for her travel? - Travel between client sites and the firm's office. - Travel from the client site to a personal dinner engagement at the end of the workday. - Travel to alternate sites for the firm's meetings with multiple clients. - Travel from her home to the client site at the beginning of the workday.
- Travel between client sites and the firm's office. - Travel to alternate sites for the firm's meetings with multiple clients.
Aimee is a salaried nonexempt employee who earns an annual salary of $52,500 for a 38-hour workweek, paid biweekly. The employer pays overtime for any hours worked in excess of 38 per week. During a pay period, she worked 86 hours. She has requested that she take compensatory time in lieu of paid overtime. How much compensatory time should she receive, assuming that her firm approves the compensatory time?
15 hours
Adrienne worked 88 hours during a biweekly period. Her standard workweek comprises 38.5 hours and company policy states that employees may receive overtime or compensatory time for hours worked in excess of 38.5. She has requested compensatory time in lieu of overtime, in keeping with company policy. She must receive ________ hours of compensatory time.
16.5
A company should assign ________ employee(s) the responsibility for signing payroll checks and disbursements.
A limited number of
Which of the following parties does not legally have access to a firm's payroll records?
All employees of the firm
According to the FLSA, when must overtime be paid to nonexempt employees?
Any hours worked in excess of 40 in a 7-day, 168-hour period.
Worker's compensation insurance premiums:
Are governed by state laws and vary according to worker job classification.
An employer must have an employee complete Form W-4:
At the time of hire.
When a payroll clerk receives an approved request for an employee's time away from work, he or she should:
Attach it to the employee's time collection report for the pay period.
Computerized payroll records are considered a(n):
Closed system.
Georgeanne works in a company for which her primary job function is the sale of company products to consumers. She receives a percentage of each sale as part of her compensation. Her compensation contains a ________ element.
Commission
Which of the following is not a privacy act related to payroll records?
Community Property Act of 1990
Leslie is the accountant for a major movie production. She is approached by a group of people from the press who ask her questions about the salaries of the actors and actresses involved in the film. According to the Code of Ethics, which principle most closely governs the appropriate conduct in this situation?
Confidentiality
A provision of the __________ made managers and supervisors ineligible to participate in the tip pools, when used for tipped employees.
Consolidated Appropriations Act
Which aspect of internal controls for payroll relates to the Sarbanes-Oxley Act?
Cross-training employees and altering duties
When developing the internal controls and record retention for a payroll system, a company should:
Develop a closed system and alternate employee duties.
Which of the following is not a class of worker that may receive an hourly rate below the Federal minimum wage?
Disabled employees in occupations unrelated to their disability.
Employee file maintenance is the responsibility of the:
Employer.
What does it mean to prove the payroll register?
Ensuring that the sum of the column totals equals the sum of the row totals.
If a firm pays its employees biweekly, how often does it disburse employee compensation?
Every two weeks
Which Act governs the minimum wage that must be paid to nonexempt workers?
FLSA
Employment legislation during the 1930s included which of the following Acts:
FLSA, FUTA, and FICA.
The classification of workers as exempt and nonexempt pertains to the provisions of the:
Fair Labor Standards Act.
A company should restrict access to payroll files (paper and/or electronic) as a part of ________.
File security internal controls
Why is it important for an employer to classify a worker as either an employee or an independent contractor?
For tax reporting purposes
To re-verify an employee's employment authorization, _______ must be used.
Form I-9
Joel is the payroll accountant for a company. He has been notified of an impending audit of all accounting records. What is Joel's role in the audit?
He must be available to answer questions and grant access to payroll records.
Which of the following items would not appear as a column on a payroll register?
Hiring date
Josh, who is 21 years of age, is a new employee of XYZ Company. To establish his identity and employment authorization, he could present:
His current United States passport.
According to the Fair Labor Standards Act, nonexempt workers receive overtime for:
Hours worked in excess of 40 per week.
The ________ mandated that new hires must be reported within ________ days to state authorities.
Immigration Reform and Control Act; 20
Mako was an employee of the Jaeger Corporation. After she voluntarily terminated employment, auditors discovered evidence of fraudulent activity that they traced to her. Mako's records must be retained:
Indefinitely.
The payroll accountant for Candor, Incorporated was found to have issued payroll checks in the name of several terminated employees. Upon investigation, the checks were all deposited to the same bank account, which was owned by the payroll accountant. Which ethical principle did the payroll accountant violate?
Integrity
Which of the following best describes the purpose of the payroll register?
It is a worksheet that accountants use to ensure payroll accuracy.
What is the effect of payroll-related legislation on payroll practice?
Legislation highlights the need for firms to create well-designed payroll systems.
The purpose of using combination pay methods is to:
Meet minimum wage requirements and offer pay for performance.
The USERRA legislation provided the following:
Military members must receive the same promotions and compensation that they would have received when they return from active duty.
Which items must be contained in every hiring packet issued by an employer?
No items are mandated for issuance in a hiring packet.
Peter is the owner of a fast-food franchise. When his payroll accountant quit, he hired his wife, Karen, to take over the payroll responsibilities. Peter prefers to review the payroll records prior to disbursement and often asks Karen to add or subtract amount from employee pay. Which ethical principle most closely describes Peter and Karen's unethical actions?
Objectivity and Independence
The Fair Labor Standards Act contains provisions for:
Overtime pay, minimum wage, and working conditions.
Which of the following is true about document retention requirements per the IRS statute of limitations?
Payroll records must be maintained for three years after termination.
Stan works for a bakery for which part of his compensation is based on the decoration of wedding and other specialty cakes. His compensation has a ________ element.
Piece-rate
Which of the following is a payroll accountant's responsibility?
Preparation of payroll tax returns.
Jonathan is the payroll accountant for Terrafirm Company. The company has experienced a rise in business that has increased Jonathan's workload to more than double his original amount. Because of the business increase, he has not been able to engage in the continuing professional education (CPE) that his payroll certification requires. When asked by his employer, Jonathan claims to be current with his continuing professional education CPE. According to the Code of Ethics, which of the following most closely describes the principle that Jonathan has violated?
Professional Competence and Due Care
Michael is the payroll accountant for a non-profit. In his personal life, he is also a single father of three young children. On the day that payroll is supposed to be issued, his children are sick and he is unavailable to be at work. The employees' paychecks cannot be issued without his presence. Which ethical principle most closely governs this situation?
Professionalism
Which of the following is among the guidelines for a Code of Ethics?
Professionalism
The main purpose of the Federal Insurance Contributions Act (FICA) was to:
Provide benefits for workers who were unable to work because of age, disability, or death.
Which of the following is not an option available to payroll accountants?
Reduced responsibility for accuracy because of outsourcing services.
If a company chooses to use computer-based accounting, which of the following is required?
Regularly scheduled software updates.
Outsourcing the payroll process:
Relieves the company of certain task completion but not the review process.
The Current Tax Payment Act changed employer remittance of taxes by:
Requiring employers to remit taxes at specific times during the year.
The _______ granted small employers tax incentives for implementing automatic retirement plan enrollment for their employees.
SECURE Act
Which form does the Internal Revenue Service use to keep track of employers?
SS-4
Internal Revenue Service (IRS) Form ________ is used to assist employers in the determination of exempt vs. nonexempt employees.
SS-8
Many large companies have website portals in which employees may view and change payroll data. Which of the following is the most significant concern about such websites?
Security of personnel data
Abigail is a full-time worker whose primary occupation involves extensive overnight travel to visit wholesaler sites on the behalf of a single company. Which of the following classifications most accurately describes Abigail's employment status?
Statutory employee
Which of the following represents a payroll system privacy breach by Susan, a payroll accountant?
Susan discusses specific information about the company's federal contracts with friends during lunch.
The _____________ represented sweeping changes to the tax code and reframed the computation of employee income tax.
Tax Cuts and Jobs Act
A payroll review process increases in complexity when:
The company has multiple departments and many employees.
In the event of an ethical breach by a payroll accountant, which entity is ultimately liable for any monetary damages due to stakeholders?
The company's CEO or president
Which entity bears the responsibility for gaining approval for a foreign worker visa so a foreign employee may work legally in the United States?
The employer
For payroll documentation purposes, when an employee needs time away from work:
The request should be documented and forwarded to the payroll clerk.
Contemporary payroll practices reflect:
The strategic use of payroll data as a company planning tool.
Why do different methods of time collection devices (e.g., time cards, biometric devices) exist among companies?
They promote compensation accuracy that matches company needs.
Which of the following is subject to overtime in the process of hourly computations, according to FLSA?
Time worked in excess of 40 hours per week
Payroll taxes were instituted by the 16th Amendment to the United States Constitution:
To fund infrastructure improvements of booming cities.
Which most closely identifies why it is important for payroll accountants to adhere to the Code of Ethics?
To protect the assets of the company and remit money owed to the government
Computing the sum of rows and columns is known by the term:
Total.
The retention period for payroll documents commences:
When an employee terminates employment.
Max Johnson was terminated from a company in South Carolina because of a reduction in workforce. Which statement best describes the state's requirements for disbursement of his final pay?
Within 48 hours.
The most common way to determine the value of fringe benefits is the general valuation rule.
true
