Compensation and Benefits Exam
Solutions
Course Introduction
This course explores the principles, strategies, and practices related to the design and administration of compensation and benefits systems within organizations. Students will gain an understanding of how compensation packages are developed, including base pay, incentive programs, and employee benefits such as health insurance, retirement plans, and paid leave. The course examines the role of compensation in attracting, motivating, and retaining talent, as well as the legal and ethical considerations involved. Through case studies and practical applications, students learn to analyze job roles, conduct market pay surveys, ensure internal equity, and align compensation strategies with organizational goals.
Recommended Textbook
Payroll Accounting 2018 28th Edition by Bernard
J. Bieg
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6 Chapters
398 Verified Questions
398 Flashcards
Source URL: https://quizplus.com/study-set/3737 Page 2
Chapter 1: The Need for Payroll and Personal Records
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70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/74510
Sample Questions
Q1) Under FMLA,the time off must be used in one uninterrupted period of time.
A)True
B)False
Answer: False
Q2) Which of the following is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period?
A) Payroll register
B) Reference inquiry form
C) Change in payroll rate form
D) Employee history record
E) None of the above
Answer: A
Q3) The Self-Employment Contributions Act imposes a tax on the net earnings from self-employment derived by an individual from any trade or business.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Computing Wages and Salaries
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/74509
Sample Questions
Q1) A college may employ its own full-time students at 85 percent of the minimum wage.
A)True
B)False
Answer: True
Q2) All major cities have enacted ordinances establishing a so-called "living wage" at $10.25 per hour.
A)True
B)False
Answer: False
Q3) Public safety employees of a state can be granted compensatory time off in lieu of overtime compensation.
A)True
B)False
Answer: True
Q4) Bona fide meal periods when the employee is completely relieved from duty are not considered working time.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Social Security Taxes
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72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/74508
Sample Questions
Q1) Payments made to a worker's spouse for hospital expenses in connection with an accident disability are not considered wages under FICA.
A)True
B)False
Answer: True
Q2) Employees are liable for their FICA taxes only until the taxes have been collected from their pay by their employer.
A)True
B)False
Answer: True
Q3) Under SECA,all of an individual's self-employment income is counted in determining the HI tax.
A)True
B)False
Answer: True
Q4) Refer to Instruction 3-1.Ralston is the sole proprietor of Cut & Curl.During the year,his net earnings were $79,700.What are his self-employment taxes (OASDI and HI)on these earnings?
Answer: \[[ \$ 79,700 \times ( 12.4 \% + 2.9 \% ) ] = \$ 12,194.10\]
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Chapter 4: Income Tax Withholding
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56 Verified Questions
56 Flashcards
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Sample Questions
Q1) All of the following are properly defined as wages subject to the withholding of federal income taxes except:
A) a year-end bonus.
B) kitchen appliances given by manufacturer in lieu of cash wages.
C) dismissal payment.
D) vacation pay.
E) payments made under worker's compensation law.
Q2) The withholding of federal income and FICA taxes from a tipped employee is made from the employee's wages that are under the employer's control.
A)True
B)False
Q3) An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.
A)True
B)False
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Chapter 5: Unemployment Compensation Taxes
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66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/74506
Sample Questions
Q1) Which of the following types of payments are not taxable wages for federal unemployment tax?
A) Retirement pay
B) Cash prizes and awards for doing outstanding work
C) Dismissal pay
D) Bonuses as remuneration for services
E) Payment under a guaranteed annual wage plan
Q2) Christmas gifts,excluding noncash gifts of nominal value,are taxable wages for unemployment purposes.
A)True
B)False
Q3) In the case of a part-time employee,the employer is not liable to pay any of the employee's earnings.
A)True
B)False
Q4) Even if the duties of depositing the FUTA taxes and filing Form 940 have been outsourced,the employer is still the responsible party.
A)True
B)False
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Chapter 6: Analyzing and Journalizing Payroll
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54 Verified Questions
54 Flashcards
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Sample Questions
Q1) The total of the net amount paid to employees each payday is credited to either the cash account or the salaries payable account.
A)True B)False
Q2) If employees must contribute to the state unemployment fund,this deduction should be shown in the payroll tax entry.
A)True B)False
Q3) Amounts withheld from employees' wages for health insurance are credited to a liability account.
A)True
B)False
Q4) FIT Payable is a liability account used to record employees' withheld federal income tax and also the employer's match of that tax.
A)True B)False
Q5) Refer to Exhibit 6-1.Journalize the entry to record the payroll.
Q6) Refer to Exhibit 6-1.Journalize the entry to deposit the FICA and FIT taxes.
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