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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

Payroll Computations, Records, and Payment

Multiple Choice Questions


1	What is the maximum number of hours an employee can work per week before being paid overtime?
		A)	44
		B)	40
		C)	50
		D)	48


2	Which is not mandatory for an employer to withhold from an employee's pay?
		A)	Canada Pension Plan
		B)	Health Insurance Premium
		C)	Employment Insurance
		D)	Federal Income Tax


3	When calculating the CPP to be withheld from an employee's pay, what rate is used?
		A)	4.6%
		B)	4.8%
		C)	4.3%
		D)	8.6%


4	When calculating the Employment Insurance to be withheld from an employee's pay, what rate is used?
		A)	2.6%
		B)	2.25%
		C)	4.1%
		D)	3.9%


5	It is the law that an employer must match an employee's Employment Insurance contribution by how many times?
		A)	1 time
		B)	1.4 times
		C)	1.8 times
		D)	2.0 times


6	What is the maximum yearly employee contribution for Canada Pension Plan (CPP)?
		A)	$ 986.50
		B)	$ 1496.40
		C)	$ 1296.40
		D)	$ 3500.00


7	What is the maximum yearly employee contribution for Employment Insurance (EI)?
		A)	$ 1496.40
		B)	$ 986.50
		C)	$ 877.50
		D)	$ 3500.00


8	What is the annual basic exemption for the Canada Pension Plan?
		A)	$ 1496.40
		B)	$ 3500.00
		C)	$ 986.50
		D)	$ 877.50


9	Tom worked 46 hours last week, at a rate of $10.00 per hour. What is Tom's gross wage?
		A)	$ 460.00
		B)	$ 550.00
		C)	$ 500.00
		D)	$ 470.00


10	Joanne worked 43 hours last week, at a rate of $ 9.60 per hour. What is Joanne's gross wage?
		A)	$ 412.80
		B)	$ 427.20
		C)	$ 441.60
		D)	$ 422.40

2002 McGraw-Hill Higher Education
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