"Regular earnings" are considered earnings for how many hours of work?
55 per week 0%
40 per week 0%
27.5 per week 0%
80 per week 0%
A company must file Form W3 every year by _____________.
January 31 0%
September 30 0%
February 28 0%
December 31 0%
A company must send W2 forms every year to its employees by _____________.
January 31 0%
February 28 0%
June 30 0%
September 30 0%
A company that employs ______________ is subject to the Civil Rights Act of 1964.
at least 15 workers for 20 weeks per year 0%
at least 100 workers 0%
at least 1 worker who works 40 hours a week 0%
at least 12 workers for 45 weeks per year 0%
A W4 is ____________.
a tax return form 0%
a form used to claim allowances for the purpose of requesting the withholding of an additional amount or of claiming an exempt status 0%
a form independent contractors must file with the employer 0%
the same as Form 941 0%
According to the Self-Employment Contributions Act, any enterprise ___________________ is considered a business.
that hires at least 10 people 0%
that pays federal taxes 0%
that makes over $100,000 per year 0%
in which activities are carried out for the purpose of earning a living 0%
Are meals provided on the company's premises subject to employment taxes as a benefit?
Yes 0%
No 0%
Depends on employee job 0%
Depends on state 0%
At ABC School, the current salary schedule for custodians is as follows: Step 1: $12.47 Step 2: $13.09 Step 3: $13.75 Step 4: $14.44 Step 5: $15.16 Employees are moved to the next s...
$15.04 0%
$16.07 0%
$12.02 0%
$14.06 0%
Employee B has an annual salary of $50,000 that is paid to him over 26 pay periods. He works 260 days per year. He retires after working 65 days, during which time he received 6 paychecks. Given t...
$961.52 0%
$1,203.42 0%
$879.32 0%
$343.54 0%
Employee C wants to contribute $8,000 a year to his tax shelter annuity. The district allows payroll deductions for tax shelter annuities to be spread over 18 pay periods. How much will have to be ...
$535.43 0%
$644.34 0%
$444.44 0%
$464.66 0%
For an employee, which of the following is a benefit of using direct deposit?
Eliminates the need for the employee to reconcile bank accounts 0%
Allows employee to commit fraud more easily 0%
No direct benefit to employee 0%
Eliminates the need for the employee to go to the bank to deposit a check, since pay is deposited directly in the bank, often the day before payday 0%
For an employer, which of the following is a benefit of using direct deposit?
Gets cash out of the company bank account faster 0%
Less costly than printing and signing checks 0%
Prevents employee fraud 0%
No direct benefit 0%
For an employer, which of the following is a disadvantage of using direct deposit?
Builds goodwill with employees 0%
Immediately reduces available cash because everyone is paid on payday without having to wait for checks to clear 0%
Increases employee opportunity for fraud 0%
Saves the company time and money 0%
How are FUTA taxes recorded at the time of payroll?
As revenue 0%
As a liability 0%
As an asset 0%
As equity 0%
How often should payroll be reconciled?
Hourly 0%
Once per payroll period 0%
Weekly 0%
Annually 0%
Of the following, which is the best safeguard against employees accessing the payroll system?
Don't allow employees to use the computer 0%
Create password-protected payroll system user accounts 0%
Make employees sign a form saying they won't violate company rules 0%
Allow access to the payroll system only to the CEO 0%
On which of the following financial statements is Payroll Expense reported?
Statement of Retained Earnings 0%
Income Statement 0%
Balance Sheet 0%
Cash Flow Statement 0%
On which of the following financial statements is Revenue reported?
Balance Sheet 0%
Income Statement 0%
Cash Flow Statement 0%
Payroll Register 0%
Payroll system software can be hosted _____________.
online 0%
on a remote computer 0%
on a local computer 0%
All of the above 0%
The Circular E: Employer's Tax Guide is ______________.
an IRS publication that describes withholding methods 0%
an SEC report for public companies 0%
another name for an employee handbook 0%
a taxation form for unemployment 0%
The Equal Pay Act ____________________.
outlawed the practice of paying people different amounts based on gender 0%
states that all employees must be paid the same rate for the same position 0%
states that all companies must pay their executives the same amount 0%
states that all underage children must be paid less than the minimum wage 0%
The Fair Labor Standards Act of 1938 __________________.
established equal employment laws for women and children 0%
abolished slave labor 0%
Set standard wages for hours worked 0%
Set the minimum wage at $8 per hour 0%
The term "audit trail" refers to ______________.
evidence of a sequence of transactions that allows anyone to trace a transaction back through the accounting system 0%
a written ledger of all checks written 0%
the paperwork auditors will request during the annual audit 0%
a report auditors provide post-audit 0%
The term "bona fide occupational qualification" refers to _______________.
the Equal Pay Act 0%
a qualification that allows an employer to hire based on race, religion, or gender 0%
a qualification that forces employers to hire based on race, religion, or gender 0%
a qualification that does not allow an employer to hire based on race, religion, or gender 0%
The term "bonus" refers to ______________.
termination pay 0%
a sum of money given to an employee in addition to the employee's regular compensation 0%
severance pay 0%
regular pay for 40 hours per week 0%
The term "commission plan" refers to ______________.
a compensation plan in which the employee earns a percentage of sales. 0%
a compensation plan in which employees are paid based on units produced 0%
termination pay 0%
an agreement to pay an employee a set amount, regardless of hours worked 0%
The term "contribution report" refers to ______________.
an annual report sent to employees listing how much they made per month 0%
a quarterly state unemployment tax return that applies an experience rating percentage to gross wages to compute the quarterly tax 0%
an annual report sent to the IRS on behalf of the employee 0%
an internal document given to employees each payroll period 0%
The term "cumulative method of withholding" refers to ______________.
the calculation of minimum wage rates 0%
a federal income tax withholding method that applies a formula with both fixed and variable components to the wage amounts 0%
a federal income tax withholding method that takes into account gross earnings, payroll period, marital status, and number of withholding allowances 0%
A federal income tax withholding method in which the current withholding amount is determined by cumulative wages and the amount that has already been withheld 0%
The term "direct deposit" refers to ______________.
writing a check for payroll 0%
entering an employee's time into the payroll system 0%
placing funds directly in an employee's bank account without issuing a paycheck 0%
depositing accounts receivable checks into the bank 0%
The term "disability insurance" refers to ______________.
insurance paid by employers to cover on-the-job accidents only 0%
insurance paid by employers and employees for protection of the employees against loss of wages due to non-job-related accidents 0%
private insurance employees must take out when starting a new job 0%
municipal-issued insurance 0%
The term "earned income credit" refers to ______________.
a special credit for people who make over a certain amount 0%
a credit given to people in the form of a monthly check 0%
a direct reduction in taxes for employees with incomes below a stipulated level 0%
a credit given to people who are unemployed 0%
The term "employee earnings record" refers to ______________.
a payroll record for each employee listing the gross wages, deductions, net pay, and cumulative earnings 0%
a record sent to the IRS at year end detailing an employee's earnings 0%
a weekly report sent to employees with their paychecks 0%
an IRS-issued report mailed to employees' homes 0%
The term "escheat law" refers to ____________.
a law that states employees must be paid twice per month 0%
a law that requires employers to hold un-cashed payroll checks for a certain amount of time 0%
A law that states employees cannot be over the age of 65 0%
A law that states employees can be given raises only once per year 0%
The term "guaranteed wage" refers to ______________.
regular per-hour wages 0%
overtime pay beyond 60 hours per week 0%
a payroll deduction 0%
an agreement to pay an employee a set amount, regardless of hours worked 0%
The term "incentive payment plan" refers to _______________.
regular wage payments 0%
a compensation plan based on company performance 0%
another name for termination pay 0%
a compensation plan in which employees earn more when they reach certain goals 0%
The term "internal control" refers to ______________.
a safe where petty cash is kept 0%
a measure by which a company safeguards its accounting data 0%
allowing employees access to the company credit card 0%
a practice prohibited by the IRS 0%
The term "oppressive child labor" refers to ____________.
the policy of not hiring willing child employees 0%
hiring children from other countries 0%
the employment of any child under the age of sixteen 0%
paying a child for more than 40 hours a week 0%
The term "overtime" refers to ______________.
hours worked each week beyond 27.5 0%
hours worked each week beyond 55 0%
hours worked each week beyond 80 0%
hours worked each week beyond 40 0%
The term "payroll period" refers to ____________.
a calendar year 0%
one month 0%
the frequency of employee compensation 0%
two weeks 0%
The term "payroll register" refers to ______________.
a weekly report sent to employees detailing the hours they worked 0%
a financial statement 0%
a time card 0%
a payroll record for a payroll period listing all employees, gross wages, deductions, and net pay 0%
The term "percentage method of withholding" refers to ______________.
the amount of unemployment tax to be withheld 0%
a federal income tax withholding method that applies a formula with both fixed and variable components to the wage amounts 0%
minimum wage rates 0%
a federal income tax withholding method that takes into account gross earnings, payroll period, marital status, and number of withholding allowances 0%
The term "piece rate plan" refers to ______________.
a compensation plan in which the employee earns a percentage of sales 0%
a compensation plan in which employees are paid based on units produced 0%
termination pay 0%
an agreement to pay an employee a set amount, regardless of hours worked 0%
The term "profit sharing" refers to ______________.
termination pay 0%
extra compensation paid for services over and above those normally performed 0%
extra compensation paid to employees based on the profits of the company 0%
regular pay for 40 hours per week 0%
The term "self-employment income" refers to ______________.
income earned working for another 0%
income earned by an individual from a business operated as a sole proprietorship 0%
income earned while working out of the country 0%
income earned above $100,000 0%
The term "statutory employee" refers to ______________.
another name for an independent contractor 0%
a regular, full-time employee subject to tax withholdings 0%
a part-time employee 0%
the president of a company 0%
The term "taxable wages" refers to ______________.
all wages earned regardless of amount 0%
the maximum calendar year gross wages that are subject to a particular tax 0%
commission-based wages only 0%
regular wages only 0%
The term "the accounting process" refers to ______________.
the sequence of steps in accounting from transaction to financial report 0%
the creation of financial reports 0%
the internal controls set by Payroll 0%
the interval between payroll checks 0%
The term "unemployment compensation benefits" refers to ______________.
payments under state programs made for a limited time to unemployed workers 0%
payments under a federal program to unemployed workers 0%
insurance an employee must take out privately 0%
payments to employees who have suffered accidents on the job 0%
The term "wage bracket method for withholding taxes" refers to ______________.
a program used to process payroll 0%
a company's policy on wage rates 0%
minimum wage rates 0%
a federal income tax withholding method that takes into account gross earnings, payroll period, marital status, and number of withholding allowances 0%
The term "withholding allowance" refers to ______________.
the extra amount held for the employee in a savings account 0%
the additional tax obligation of the employee 0%
the additional tax obligation of the employer 0%
an allowance that reduces taxable income by a fixed amount 0%
The term "workers compensation insurance" refers to ______________.
insurance paid for by employees to cover them in the event they lose their job due to an off-the-job accident 0%
insurance paid for by the employees to cover them in the event they lose their job due to bad performance 0%
government-issued health insurance 0%
insurance paid for by employers that provides benefits to employees or their families for loss of wages due to job-related accidents, illness, or injuries 0%
What does the acronym SUTA stand for?
Special Unemployment Tax Act 0%
State Unemployment Taxation Analysis 0%
Special Unemployment Taxation Analysis 0%
State Unemployment Tax Act 0%
What is an EIN?
Employee Identification Name 0%
Employer Identification Number 0%
Every Independent Numerator 0%
Employer Identification Name 0%
What is Form W3?
A detailed version of Form W2 0%
An annual tax filing form for private corporations 0%
A form filed with the Social Security Administration summarizing all employee W2s 0%
The same as Form 941 0%
What is the purpose of a time card?
To track employee hours worked per payroll period 0%
To calculate employee tax withholding 0%
To calculate bonuses 0%
To determine employee tax exemptions 0%
What is the purpose of accruing vacation expense?
To record vacation expense in the period earned 0%
To build a savings account for vacations 0%
To allow employers to pay employees for vacation time 0%
To gain better tax write-offs 0%
What is the purpose of an EIN?
Same as a stock ticker symbol 0%
Used to report employee earnings 0%
Distinguishes public companies from private companies 0%
An identifier for the IRS to track employers 0%
What is the purpose of auditing payroll ?
To fulfill an IRS requirement 0%
To fulfill a GAAP requirement 0%
To identify employees who deserve a raise 0%
To verify that payroll records are accurate and to reflect what happened 0%
What is the purpose of Form 940?
To report annual wages to employees 0%
To report annual wages to the IRS 0%
To reconcile taxes paid with tax liability for unemployment taxes 0%
To reconcile taxes paid with tax liability for federal taxes 0%
What is the purpose of Form 941?
To report annual wages to employees 0%
To report annual wages to the IRS 0%
To reconcile taxes paid with tax liability for unemployment taxes 0%
To reconcile, on a quarterly basis, taxes paid with tax liability for federal taxes 0%
What is the purpose of Form W2?
To report annual wages to employees 0%
To report annual wages to the IRS 0%
To report to employees their total wages earned and taxes paid 0%
To reconcile, on a quarterly basis, taxes paid with tax liability for federal taxes 0%
Which of the following accounts is debited when FUTA taxes are paid to the government?
FUTA Expense 0%
FUTA Payable 0%
Wages Payable 0%
Wages Expense 0%
Which of the following age groups is covered by the Age Discrimination in Employment Act of 1967?
Up to age 20 0%
Ages 20 to 25 0%
Over 40 0%
Over 80 0%
Which of the following factors might prompt a company to switch to an automated payroll system?
Income tax rates 0%
Number of employees being paid 0%
Annual raises are coming up 0%
Payroll staff has increased 0%
Which of the following illustrates the basic Balance Sheet formula?
Assets + Liabilities = Equity 0%
Assets + Equity = Liabilities 0%
Equity - Liabilities = Assets 0%
Assets = Liabilities + Equity 0%
Which of the following is a benefit of an automated payroll system?
More economical than processing payroll within the company 0%
Ability to fire some of the payroll staff since the function now requires less labor 0%
Fewer internal controls are needed 0%
Allows a company to process payroll more quickly 0%
Which of the following is a disadvantage of an automated payroll system?
Less accurate tax reporting 0%
More costly than manually preparing payroll 0%
Employees will be laid off since the automated system requires less labor 0%
Employees need a degree in accounting to be able to process payroll 0%
Which of the following is a major payroll processor?
ADP 0%
IRS 0%
FASB 0%
SEC 0%
Which of the following is an example of an internal control for payroll?
Giving employees cash instead of checks 0%
Having the company CFO review all financial reports 0%
Putting employee pay stubs and/or checks in sealed envelopes 0%
Paying employees for the hours they report without review 0%
Which of the following journal entries would be made to void a payroll check printed in error?
Dr: Salary Payable, Cr: Salary Expense 0%
Dr: Salary Expense, Cr: Cash 0%
Dr: Cash, Cr: Salary Payable 0%
Dr: Cash, Cr: Salary Expense 0%
Which of the following payroll items is worth auditing?
The middle names of employees 0%
The addresses of employees 0%
That gross pay for each individual matches his or her employment agreement 0%
The prior employers of employees 0%
Which of the following should happen in the payroll system after an employee is terminated?
The employee should be given a one-time bonus. 0%
The employee's hourly rate should be set to $99. 0%
The employee's former employers should be contacted and notes made. 0%
The employee should be flagged as terminated in the payroll system. 0%
Which of the following statements about independent contractors is true?
An independent contractor determines when, where, and how he or she will work under a contract. 0%
An independent contractor files a Form W2 like any other employee. 0%
Federal taxes are withheld for independent contractors. 0%
Independent contractors work part-time. 0%
Who controls the regulations for the timing of payment of wages?
Federal government 0%
State government 0%
City government 0%
Municipal government 0%
Who decides if a person is an employee or an independent contractor?
SEC 0%
IRS 0%
Employer 0%
Employee 0%
Who issues an EIN to a company?
FASB 0%
IRS 0%
Federal government 0%
State government 0%
Why has the IRS allowed employers to combine federal taxes when computing withholding amounts?
The rates are all the same. 0%
Payroll software cannot accommodate different rates. 0%
There is no stated reason. 0%
To make computing taxes easier for employers 0%