Introduction to Payroll Study Guide Questions
Course Introduction
Introduction to Payroll provides an essential overview of payroll systems, processes, and regulations, equipping students with the foundational knowledge necessary to accurately manage employee compensation. This course covers topics such as wage and hour laws, payroll tax obligations, recordkeeping requirements, compensation structures, and payroll accounting procedures. Emphasis is placed on practical skills including payroll calculations, deductions, reporting, and compliance with government regulations. Students will gain proficiency in using payroll software and understand the ethical and legal considerations involved in payroll management, preparing them for entry-level roles in payroll administration and human resources.
Recommended Textbook
Payroll Accounting 2018 28th Edition by Bernard
J. Bieg
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6 Chapters
398 Verified Questions
398 Flashcards
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Chapter 1: The Need for Payroll and Personal Records
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70 Verified Questions
70 Flashcards
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Sample Questions
Q1) All states have set their minimum wage to be the same as the federal government.
A)True
B)False Answer: False
Q2) The FLSA imposes no recordkeeping requirements on employers.
A)True
B)False Answer: False
Q3) Which of the following acts levies a tax on employers and employees that is credited to the Federal Old-Age and Survivors' Trust Fund and the Federal Disability Insurance Trust Fund?
A) Federal Income Tax Act
B) Federal Insurance Contributions Act
C) Fair Labor Standards Act
D) Federal Unemployment Tax Act
E) Employee Retirement Income Security Act Answer: B
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Page 3
Chapter 2: Computing Wages and Salaries
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) A stated percentage of revenue paid an employee who transacts a piece of business or performs a service is called:
A) a piece rate.
B) a commission.
C) a regular hourly rate.
D) a remunerative salary.
E) none of the above.
Answer: B
Q2) The tips received by a tipped employee are less than $5.12 of the minimum hourly tip credit rate.The maximum permissible tip credit is:
A) $30 a month.
B) $5.12 an hour.
C) 45% of the employee's minimum wage.
D) 50% of the employee's minimum wage.
E) the amount of tips actually received by the employee.
Answer: E
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Chapter 3: Social Security Taxes
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) Which of the following payments are not taxable for FICA?
A) Back-pay awards.
B) Wage supplements to cover difference between employees' salaries and their military pay.
C) Severance pay.
D) Difference between employees' regular wages and the amount received for jury duty.
E) Retroactive wage increase.
Answer: B
Q2) Severance pay is considered taxable wages under FICA.
A)True
B)False
Answer: True
Q3) Monthly depositors are required to deposit their taxes by the 15th day of the following month.
A)True
B)False
Answer: True
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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) An employer must file an information return under all of the following conditions except:
A) to report $1,000 of compensation paid to an individual who is not an employee.
B) to report the wages totaling $600 paid to an independent contractor during the calendar year.
C) to report dividends totaling $600 paid to an individual during the calendar year.
D) to report commissions of $500 paid to a self-employed salesman.
E) An information return must be filed under each of the above conditions.
Q2) In the IRA form of the Simple Retirement Account,employers must match the employee's contribution,dollar-for-dollar,up to 3% of the employee's compensation.
A)True
B)False
Q3) After completion of Form W-4,an employer must copy the employee's social security card and place it in the employee's employment file.
A)True
B)False
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Chapter 5: Unemployment Compensation Taxes
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66 Verified Questions
66 Flashcards
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Sample Questions
Q1) For FUTA purposes,an employer can be any one of the following except:
A) an individual.
B) a partnership.
C) a trust.
D) a corporation.
E) All of the above can be employers.
Q2) Refer to Instruction 5-1.Hunter Company had a FUTA taxable payroll of $192,700 for the year.Since the company is located in a state that has 1.5% FUTA credit reduction due to unpaid loans,determine Hunter's FUTA tax liability for the year.
Q3) An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.
A)True
B)False
Q4) On Form 940,even if the total FUTA tax is more than $500,there is no listing of quarterly federal unemployment tax liabilities.
A)True
B)False
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7
Chapter 6: Analyzing and Journalizing Payroll
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54 Flashcards
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Sample Questions
Q1) Refer to Exhibit 6-1.Journalize the entry to record the employer's payroll taxes (assume a SUTA rate of 3.7%).
Q2) Amounts withheld from employees' wages for health insurance are credited to a liability account.
A)True
B)False
Q3) When the federal tax deposit is made,the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.
A)True
B)False
Q4) The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA (OASDI and HI),FUTA,and SUTA taxes.
A)True
B)False
Q5) The FUTA tax part of the payroll tax entry is recorded at the net amount (0.6%)of the taxable payroll.
A)True
B)False
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