ACCT 218 Payroll Ch 1-3 Study Guide: Comprehensive Questions and Answers, Exams of Accounting

Download ACCT 218 Payroll Ch 1-3 Study Guide: Comprehensive Questions and Answers and more Exams Accounting in PDF only on Docsity! ACCT 218 Payroll Ch 1-3 Study guide | Comprehensive Questions and Answers Latest Updated 2024/2025 With 100% Verified Solutions Which act sets the minimum wage, and what is the current wage rate? a). The Civil Rights Act of 1964 sets the minimum wage and the current minimum wage rate is $7.50 per hour. b.)The Federal Unemployment Tax Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. c). The Self-Employment Contributions Act sets the minimum wage and the current minimum wage rate is $9.19 per hour. d. The Fair Labor Standards Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. e. None of these choices are correct. - ✔✔d. The Fair Labor Standards Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? a). the amount and nature of exempt pay b). the payroll period c) the total additions to or deduction from wages d). all of these choices are correct - ✔✔d). all of these choices are correct Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? a). the employee b). the employer c). both employee & employer d). only a self-employed individual - ✔✔d). both employee & employer How are the funds used which are provided by FUTA and SUTA? a. All of the funds are used to provide the benefits of unemployment compensation to qualified unemployed workers. b. FUTA funds are used to pay the state and federal administrative expenses and SUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. c. SUTA funds are used to pay the state and federal administrative expenses and FUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. d. none of these choices are correct - ✔✔b. FUTA funds are used to pay the state and federal administrative expenses and SUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. Which of the following acts prohibits discriminating in hiring, firing, promoting, compensating, or in any other condition of employment on the basis of race, color, religion, sex, or national origin? a). The federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 b). the Federal Unemployment Tax Act (FUTA) c). The Civil Rights Act of 1964 d). None of these choices are correct - ✔✔c). The Civil Rights Act of 1964 What is the purpose of the Age Discrimination in Employment Act (ADEA)? A). To provide protection only for workers under the age of 18 B). To prohibit discrimination on the basis of age in the employment practices of employer C). Both of these choices are correct D). Neither of these choices is correct - ✔✔ Which of these employee types is an allowable exception to the protection of the Age Discrimination in Employment Act (ADEA)? a. Executive employees who are 65 years or older and have held high policymaking positions during the two-year period prior to retirement b. Employees who earn more than $44,000 per year c. Employees over the age of 40 who have held high policymaking positions during the two-year period prior to retirement d. None of these choices are correct. - ✔✔a. Executive employees who are 65 years or older and have held high policymaking positions during the two-year period prior to retirement Who is covered by the Walsh-Healey Public Contracts Act? d. All of these choices are correct. - ✔✔d. All of these choices are correct. Under the Civil Rights Act of 1964 and the Age Discrimination in Employment Act, which of the following questions may not be asked by an employer during pre-hire inquiries? a). what is you religion ? b). What is your race ? c). what is your sex? d). all of these choices are correct. - ✔✔d). all of these choices are correct. What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? a. They must seek an investigative report on all prospective employees. b. They must disclose to the job applicant that they are seeking an investigative report. c. If employment is denied because of the facts on the investigative report, the employer does not have to inform the applicant. d. None of these choices are correct. - ✔✔b. They must disclose to the job applicant that they are seeking an investigative report. Which of the following are processes that occur in most payroll accounting systems? a. Recording hours worked or units produced b. Preparation of payroll reports c. Computation of gross pay, deductions, and net pay d. All of these choices are correct. - ✔✔d. All of these choices are correct. Which basic records are generated in most payroll accounting systems? a. A payroll register b. The employee's safety awards record c. The employee's earnings record d. Only "A payroll register" and "The employee's earnings record" are correct. - ✔✔d. Only "A payroll register" and "The employee's earnings record" are correct. How can the information shown in the employees' earnings record be used? a. To complete Form W-2 for employer b. To prepare period reports c. To complete Form W-2 for each employee d. To prepare period reports and complete Form W-2 for each employee e. To prepare period reports and complete Form W-2 for employer - ✔✔d. To prepare period reports and complete Form W-2 for each employee The two bases of coverage provided by the FLSA are: A). enterprise coverage and individual employee coverage B). enterprise coverage and employer coverage C). individual employee coverage and departmental coverage D). individual employee coverage and employer coverage - ✔✔A). enterprise coverage and individual employee coverage The U.S Department of Labor utilizes which of the following tests in determining the existence of an employer-employee relationship? A). amount of skill, initiative, judgement, or foresight required for the worker's services B). Permanency of the worker's relationship with the employer C). Nature and degree of the employer's control D). Degree of integration of the worker's services into the employer's business E). All of these choices are correct - ✔✔E). All of these choices are correct Which of the following establishments may employ full-time students at 85% of the minimum wage? A). Retail or service establishments B). Farms C). Institutions of higher education D). All of these choices are correct - ✔✔D). All of these choices are correct What is Miami's living wage rate for contracts entered into on or after October 1, 2016? In Miami, Florida the living wage rate for city employees or those who work for companies with city contracts that exceed $100,000, if employer provides health insurance is ___________ per hour. The wage rate if employer does not provide health insurance is __________ per hour. - ✔✔$15.03 $18.73 Per the FLSA, a tipped employee is one who receives ___ or more per month in tips. An employer can credit up to ___ of a tipped employee's minimum wage as coming from tips actually received. - ✔✔$30.00 $5.12 State employees working in the area of public safety may accumulate compensatory time off up to _______ hours. - ✔✔480 A state employee may be paid for compensatory time off in which of the following cases? A). Upon reaching the "bank" maximum of 480 or 240 hours B). At termination of employment C). Both "At termination of employment" and "upon reaching the "bank" maximum of 480 or 240 hours" D). None of these choices are correct - ✔✔C). Both "At termination of employment" and "upon reaching the "bank" maximum of 480 or 240 hours" The following employees are exempt from which of the requirements of the FLSA: a). Amusement park employees are exempt from b). Taxicab drivers are exempt from c). Casual babysitters are exempt from d). Elementary school teachers are exempt from e). Outside salespersons are exempt from - ✔✔a). minimum wage, equal pay, and overtime provisions b). only the overtime provision c). minimum wage, equal pay, and overtime provisions d). the minimum wage and overtime provisions e). the minimum wage and overtime provisions If the overtime premium approach is used, overtime premium pay is calculated by ___________ the overtime hours by an overtime premium rate of one-half of the regular hourly rate. - ✔✔multiplying To calculate the overtime hourly rate for employees who are paid biweekly, ________ by 2 to arrive at the weekly salary, then ________ the weekly salary by the regular number of hours worked to obtain the hourly rate. _____________ this rate by one and one-half to obtain the overtime rate - ✔✔Divide divide multiply Nondiscretionary bonuses include - ✔✔Amounts set up as inducements to achieve goals Commissions are considered to be payment for hours worked _______ included in determining the regular hourly rate. - ✔✔and must be For a salaried employee working a fluctuating schedule who is paid on a fixed salary, overtime pay is found by ______ the normal salary by the total hours worked and then _________ that number in half to get the extra half-rate. - ✔✔dividing dividing The regular rate of pay for a salaried nonexempt employee is found by _________ the number of hours expected to be worked each week into the weekly salary. - ✔✔dividing For social security purposes, what conditions must an individual meet to be classified as a "covered" employer? A). the common-law relationship of employer and employee must exist B). The person must employ one or more individuals for the performance of services in the United States. C). Both of these answers are correct D). Neither of these answers are correct - ✔✔B). The person must employ one or more individuals for the performance of services in the United States. In order to be classified as a "covered" employee, an individual must perform services where - ✔✔the common-law relationship of employer and employee exists A ________relationship exists between an employee and an employer when the employer tells or has a right to tell a worker how, when, and where to work. - ✔✔common-law An _______________ is a person who follows an independent trade, business, or profession and offers services to the public. - ✔✔independent contractor Employers must collect ______________ taxes on tips reported by employees and for wages paid to tipped employees. Employers are also liable for their share of the __________ taxes on the tips reported by employees and for wages paid to tipped employees. - ✔✔FICA FICA The first ________ months of sick pay received by an employee is considered to be wages. These amounts are subject to withholding for FICA tax purposes. - ✔✔six Employees' pretax contributions into a qualified deferred compensation plan are subject to __________ tax. However, the employers' matching contributions are ________ - ✔✔FICA tax-free John Luis receives wages from three employers during 20--. Is he entitled to a refund on the OASDI taxes paid on wages in excess of the taxable wage base? If individuals paid OASDI taxes on wages in excess of $160,200 ______________________, they are entitled to a ________________. If so, how can he receive a refund? - ✔✔because of having worked for more than one employer refund of their overpayment it is credited against the taxpayer's federal income taxes for that year. The self-employment tax rates for 2023 on net earnings are _______% for OASDI and ____________ % for HI. Self-employment income is subject to _________ % additional HI tax on earned income in excess of $___________. The actual tax calculation is done on Schedule SE (Self-Employment Tax) of Form 1040. - ✔✔12.4 2.9 0.9 $200,000 The deposit rules for nonagricultural employers are: a. Total taxes $50,000 or less in the lookback period: b. Total taxes more than $50,000 in the lookback period: c. Accumulated taxes of $100,000 or more: d. If you fell under the one-day rule at any time during this year or last year: e. Less than $2,500 for the quarter: - ✔✔a). Deposit taxes monthly b). Deposit taxes semiweekly c). Deposit by the next banking day d). Deposit taxes semiweekly e). Deposit by the end of the month following the quarter, or mail taxes with Form 941 All employers must deposit their employment taxes electronically with the exception of those with _________ or less in quarterly tax liabilities - ✔✔$2,500 There are two electronic methods of deposit. When the employer instructs the Treasury Financial Agent to withdraw funds from the employer's account and route them to the Treasury's account at the Federal Reserve Bank it is referred as ____________ When the employer instructs the bank to send the payment directly to the Treasury's account at the Federal Reserve Bank it is referred as_________________ - ✔✔ACH debit method ACH credit method Generally, an employer must file Form 941 each calendar - ✔✔quarter