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| 1 | |
Which of the following statements is not correct? |
| | A) | The amount of social security tax withheld depends on an employee's gross earnings, martial status, and number of withholding allowances. |
| | B) | Federal law requires that social security, Medicare, and federal income taxes be deducted from the gross pay of most employees. |
| | C) | Medicare taxes are levied in an equal amount on both employers and employees. |
| | D) | Once an employee's year-to-date wages reach a certain amount prescribed by law, social security tax is no longer withheld. |
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| 2 | |
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. |
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| 3 | |
Which of the following statements is not correct? |
| | A) | The FUTA tax provides benefits for employees who become unemployed. |
| | B) | The federal unemployment tax rate can be reduced by the rate charged by state for the state unemployment tax. |
| | C) | The earnings base for the federal and state unemployment taxes are the same, the first $7,000 of an employee's earnings for the year. |
| | D) | All of the above are correct. |
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| 4 | |
The employer records the amount of federal income tax withheld from employees as |
| | A) | Income Tax Expense. |
| | B) | Employee Income Tax Payable. |
| | C) | Social Security Tax Expense. |
| | D) | Social Security Tax Payable. |
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| 5 | |
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. |
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| 6 | |
An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week. In the payroll register, the employer should record an overtime premium of |
| | A) | $440. |
| | B) | $220. |
| | C) | $20. |
| | D) | $5 |
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| 7 | |
An employee whose regular hourly rate is $20 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week. In the payroll register, the employer should record an overtime premium of |
| | A) | $880. |
| | B) | $440. |
| | C) | $120. |
| | D) | $40. |
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| 8 | |
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 |
| | A) | $480. |
| | B) | $240. |
| | C) | $80. |
| | D) | $40. |
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| 9 | |
Salespeople who are paid a percentage of net sales are paid on |
| | A) | the commission basis. |
| | B) | salary basis. |
| | C) | hourly-rate basis. |
| | D) | piece-rate basis. |
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| 10 | |
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 |
| | A) | $378. |
| | B) | $396. |
| | C) | $414. |
| | D) | $594. |
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