BUS MATH Chapter 9
The number of dependents one claims does not affect the amount of Social Security and Medicare tax paid.
True
The W-4 is used strictly to calculate Social Security and Medicare taxes.
False
The Federal Insurance Contributions Act funds the federal income tax program.
False
The base amount for calculating Social Security taxes never changes from year to year.
False
Bill Burne's earnings are subject to deductions for Social Security, Medicare, and FIT. To date his cumulative earnings are $110,000. This week Bill earns $1,200. Bill, who is married, is paid weekly and claims three exemptions. Assume the Social Security rate is 6.2% on $128,400 and 1.45% for Medicare. His net pay for the week is (use percentage table in handbook to calculate FIT):
$1,026.89
Jill Hartman earns $750 per week plus 3% of sales in excess of $6,500. If Jill sells $25,000 in the first week, her earnings are:
$1,305
To date, Jay Ward has cumulative earnings of $118,000. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare):
$186
Jasper works at Panera Company for $11.25 per hour plus a commission of 2% of her sales. Assuming Jasper worked 26 hours last week and had sales of $2,610, her gross pay is:
$344.70
David is paid on a graduated commission scale at Nooter Company. He receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:
$4,420
Lee Wong is a sales clerk at Sears. She is paid $8.00 per hour plus a commission of 4% on all sales. Assuming Lee works 39 hours and has sales of $4,000, her gross pay is:
$472
Bob Neff, owner of an automotive dealership, pays one of his salesmen, Mike, a $1,300 draw per week plus 6% on all commission sales. Mike sold seven cars over the four-week period, totaling $186,900 for the month. Mike's commission minus the draw is:
$6,014
Leo Corporation pays its employees on a graduated commission scale: 6% on the first $40,000 in sales, 7% on sales from $40,000 to $80,000, and 9% on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:
$7,450
Employers usually pay employees:
All of these
Percentage method tables can show:
All of these
FUTA tax is paid:
By the employer
There is a maximum amount of Medicare tax an employee can contribute in a calendar year.
False
The percentage method aids in calculating:
FIT
A draw is an advance that need not be repaid if the commission does not exceed the draw.
False
A married person will pay in more Social Security and Medicare tax than a single person.
False
A self-employed person has at least three employees.
False
An employee's commission is always based on total dollar sales.
False
An override can never help increase a manager's total pay.
False
Being paid biweekly is the same as being paid semimonthly.
False
Differential pay means that there is one fixed rate per unit that is produced.
False
FUTA tax is computed by the wage-bracket table.
False
Payroll registers cannot record cumulative earnings.
False
The Fair Labor Standards Act entitles employees to time and a half over 36 1/2 hours.
False
Social Security and Medicare tax:
Have different rates
Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale: 1-50=$1.65 51-150=$3.30 151-200=$4.95 Over 200=$6.00 What is Mindy's pay if she produced 192 boots for the week?
None of these
Sandi works for Elizabeth Arden Cosmetics and earns $500 per week salary plus 4% commission on sales over $2,000. If Sandi sold $2,733 last week, what was her salary?
None of these
If you are paid twice a month, you are being paid:
Semimonthly
The employer will match the employee's Social Security and Medicare contribution.
True
The more allowances claimed on Form W-4:
The less money deducted for FIT
A quarter is 13 weeks.
True
A variable commission scale means that for different levels of net sales there are different commission rates.
True
Circular E from the Internal Revenue Service contains many tax tables.
True
Exempt wages means not taxable wages.
True
SUTA tax is usually paid quarterly.
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 FICA tax now requires separate reporting for Social Security and Medicare.
True
The taxable earnings column of a payroll register records:
What wages will be taxed