WGU CYC1 Chapter 10

Jill Monroe earns $25 per hour. She worked 48 hours this pay period and receives time-and-a-half for any hours worked over 40 hours per week. Jill's gross earnings are: $1,200 $1,300 $1,100 $1,920

$1,300

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 48 hours in one week. In the payroll register, the employer should record an overtime premium of $480. $240. $80. $40.

$40

An employee whose regular hourly rate is $9 and whose overtime rate is 1.5 times the regular rate worked 44 hours one week. The employee's gross pay was $378. $396. $414. $594.

$414

Lacy Crawford has a regular hourly rate of $21.50. In a week when she worked 40 hours and had deductions of $110 for federal income tax, $53.50 for social security tax, and $12.50 for Medicare tax, her net pay was $860. $684. $750. $794.

$684

Which of the following statements is correct? a] A company is required to withhold various employee taxes from amounts paid independent contractors. b] The accountant who performs the independent audit for a company is an employee of the company. c] All employees must be paid at the minimum wage rate set by the Fair Labor Standards Act. d] Disability benefits for the worker and the worker's dependents are provided by the Federal Insurance Contributions Act.

Disability benefits for the worker and the worker's dependents are provided by the Federal Insurance Contributions Act.

The employer records the amount of federal income tax withheld from employees as a] Income Tax Expense. b] Employee Federal Income Tax Payable. c] Social Security Tax Expense. d] Social Security Tax Payable.

Employee Federal Income Tax Payable.

If an employee works for more than one employer during the year, the social security tax is deducted and matched by only one employer. True False

False

The gross pay of an hourly employee is determined by subtracting the overtime premium from the regular earnings. True False

False

The maximum base for the social security tax is the same as that for the Medicare tax. True False

False

The Payroll Tax Expense account is used to record which of the following taxes? a] Federal unemployment compensation tax b] Federal Income Tax c] State Income Taxes d] Sales Taxes

Federal unemployment compensation tax

Earnings in excess of the social security base amount are not taxed. True False

True

The Medicare tax is levied to provide medical care for the employee and the employee's spouse after they reach age 65. True False

True

True or False Employees submit Form W-4 to their employers to show the number of withholding allowances they claim for federal income tax withholding purposes.

True

Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500, the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is a] a debit for $36.25. b] a credit for $36.25. c] a debit for $108.75. d] a credit for $108.75.

a credit for $108.75

The employer records the amount of federal income tax withheld as: a] an asset. b] a payroll tax expense. c] a liability. d] an expense.

a liability

The column totals in a payroll register a] are used in the journal entry to record the payroll. b] are posted directly to the general ledger accounts. c] are unnecessary. d] are neither recorded in a journal entry nor posted to the general ledger accou

are posted directly to the general ledger accounts.

The column totals in a payroll register a] are used in the journal entry to record the payroll. b] are posted directly to the general ledger accounts. c] are unnecessary. d] are neither recorded in a journal entry nor posted to the general ledger accounts.

are used in the journal entry to record the payroll.

Federal law requires that the employer withhold _________ from the employee's pay. a] federal income tax, social security tax, Medicare tax, and FUTA b] federal income tax, social security tax, and Medicare tax c] federal income tax, social security tax, Medicare tax, and state and local taxes d] Federal and state income tax, social security tax, Medicare tax, and FUTA

b] federal income tax, social security tax, and Medicare tax

The employer records the amount of federal income tax withheld as: a] an asset. b] a payroll tax expense. c] a liability. d] an expense.

c] a liability.

It is best not to pay wages and salaries by a] cash. b] a check from the regular cash account. c] the direct-deposit method. d] a check from the payroll cash account.

cash

Which of the following statements is correct? a] A company is required to withhold various employee taxes from amounts paid independent contractors. b] The accountant who performs the independent audit for a company is an employee of the company. c] All employees must be paid at the minimum wage rate set by the Fair Labor Standards Act. d] Disability benefits for the worker and the worker's dependents are provided by the Federal Insurance Contributions Act.

d] Disability benefits for the worker and the worker's dependents are provided by the Federal Insurance

When checks are issued to employees after the entry to record the payroll has been made, the accountant would a] debit Salaries Expense, debit Wages Expense, and credit Cash. b] debit Salaries and Wages Payable, debit Social Security Tax Payable, debit Medicare Tax Payable, debit Employee Income Tax Payable, and credit Cash. c] debit Salaries and Wages Payable and credit Cash. d] debit Salaries and Wages Payable and credit Salaries Expense and Wages Expense.

debit Salaries and Wages Payable and credit Cash.

Which of the following is a factor in the determination of the amount of social security tax to withhold from an employee's pay? a] hours worked during the pay period b] marital status c] withholding allowances claimed on Form W-4 d] gross wages

gross wages

Each type of deduction made from the employees' earnings is recorded in a separate a] asset account. b] expense account. c] liability account. d] revenue account.

liability account.

The amount debited to Wages Expense when a payroll is recorded is the a] regular gross earnings. b] earnings after taxes. c] net earnings. d] total gross earnings.

total gross earnings.