Term
1. An employee is paid $0.50 per unit under a piece rate system. During the current biweekly pay period the employee worked 47 hours the first week and produced 920 units; and in the second week worked 46 hours producing 835 units. Calculate the employee’s biweekly gross pay.
A. $877.50
B. $939.01
C. $941.14
D. $1061.58 |
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Definition
1. B PS 2.6-4 1st Week2nd Week 920 x .50 = 460835 x .50 = 417.50
460 / 47 = 9.79417.50 / 46 = 9.08
47 - 40 = 746 - 40 = 6
.5 x 9.79 x 7 = 34.27.5 x 9.08 x 6 =27.24
460 + 34.27 = 494.27417.50 + 27.24 = 444.74
1st Week 494.27 + 2nd Week 444.74 = 939.01 |
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Term
2. Under a piece rate system; a company’s production workers receive $0.32 for each unit produced during regular hours and 1 1/2 times for any units produced during overtime hours. During the workweek an employee produced 1400 units in the 1st 40 hours and 320 in the next 5 hours. Calculate the employee’s total earnings for the workweek.
A. $678.40
B. $642.13
C. $601.60
D. 550.40 |
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Definition
2. C PS 2.6-4 1400 x .32 = 448.00
1.5x .32 x 320 = 153.60
448.00 + 153.60 =601.60 |
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Term
4. An employee’s is paid an hourly rate of $10.00. During the current workweek the employee worked 47 hours and received a $100 nondiscretionary bonus. Calculate the employee’s gross pay for the workweek.
A. $570.00
B. $605.00
C. $612.46
D. $697.37 |
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Definition
4. C PS 2.6-3 Note: Nondiscretionary bonuses are included in regular rate of
pay
47 x 10 = 470.00
470 + 100 = 570.00
570.00 / 47 = 12.13
12.13 x .5 x 7 = 42.46
570 + 42.46 = 612.46 |
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Term
5. An employee is scheduled to work 37.50 per week with an annual salary of $25,000.00. The company pays biweekly and the employee has the following deduction; union dues $25.00,401K 10% and child support for $25.00. Calculate the hourly rate of pay.
A. $10.82
B. $11.54
C. $12.02
D. $12.82 |
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Definition
5. D
37.50 x 52 = 1950
25,000 / 1950 = 12.82 |
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Term
6. Calculate the gross pay due under the FLSA for an exempt employee, paid biweekly. Normal workweek 37.50 hours,weekly salary 487.50. Employee worked 43.00 hours 1st week and 38 hours the 2nd week.
A. $1053.00
B. $1032.50
C. $994.50
D. $975.00
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Definition
6. D PS 2.4-1
Exempt employees are only guaranteed their weekly salary, also can not reduce pay if works less than an 8 hour day.
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Term
7. A nonexempt salaried employee works 35 hours a week and is paid $20,020.00 annually. During the current pay period they worked 39 hours in the 1st week and 40 hours in the 2nd week. Calculate their biweekly earnings.
A. $770.00
B. $791.40
C. $852.50
D. $946.00
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Definition
7. A PS 2.6-4 “GAP” Courts have ruled that so long as you paid them minwage
It’s ok not to pay them more. But if it goes under min wage ER
Must increase payment to at least min wage.
385 + 385 = 770 |
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Term
8. A nonexempt agrees to a fixed salary of $500.00 per week. Michael worked 48 hours one week. Calculate his earnings for that week.
A. $541.68
B. $550.00
C. $625.04
D. $650.00 |
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Definition
8. A PS 2.6-4 Fluctuating workweek
500 / 48 = 10.42
.5 x 10.42 x 8 = 41.68
500.00 + 41.68 = 541.68 |
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Term
9. An employee is paid biweekly with an hourly rate of $8.00. They agree to work overtime in the 1st week and take compensatory time the next. They worked 46 hours in the 1st week and 35 the next. Calculate the employee’s biweekly earnings.
A. $648.00
B. $652.00
C. $672.00
D. $688.00 |
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Definition
9. C PS 2.6-5 Note: Work this problem as if compensatory time was not stated.
46 x 8 = 368.00
35 x 8 = 280.00
6 x .5 x 8 = 24.00
368.00 + 280.00 + 24.00 = 672.00 |
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Term
10. An employee drives a qualifying vehicle 18,250 miles during 2015 and has personal miles of 7425. Mark pays for the gas. Using cents per mile calculate the imputed income for his personal use of the car.
A. $3712.50
B. $3861.00
C. $4120.88
D. $4195.13 |
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Definition
10. B PS 3.2-2
Imputed income = 7425 x (.575 - .055) =
3861.00 |
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Term
11. An employee drives an employer provided car its FMV is 14000. In 2015 the employee drove 19000; 5600 personal and 13400 business miles. Using ALV table calculate the employee’s personal use. Table at end.
A. $5762.00
B. $2716.00
C. $2408.00
D. $1208.27 |
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Definition
11. D PS 3.2-2
5600 / 19000 = 29.47%
4100 x 29.47% = 1208.27 |
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Term
| 12. An employee’s company provides their employees with group term life insurance at two times annual salary. An employee has an annual salary of $30,000 and was born on 10/14/77. Calculate the taxable GTL income for 2015. |
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Definition
12. B PS 3.3-1
(30,000 x 2) - 50,000 = 10,000
10,000 / 1,000 = 10
10 x .09 = .90
.90 x 12 = 10.80 |
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Term
13. XZ company wants to give Terry a net check of $10000 as a bonus. Using the following tax percentages, calculate the gross wages. FIT 25%, SIT 9%.
A. $15,151.51
B. $16,570.01
C. $17,137.96
D. $17436.79 |
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Definition
13. C PS 3.4-11
25% + 9% + 7.65% = 41.65%
100% - 41.65% = 58.35%
10,000 / 58.35% = 17,137.96 |
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Term
14. A manager has requested a net check of $5000 for one of their staff. The employee’s YTD FICA taxable wages are $116100. Using the following tax percentages,calculate the gross wages. FIT 25%,SIT 6.25% and FICA.
A. $7,579.20
B. $7,650.52
C. $7,923.93
D. $8,183.31 |
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Definition
14. B PS 3.4-11
118,500 – 116,100 = 2,400.00
2400 x 6.2% = 148.80
5,000 + 148.80 = 5148.80
25% + 6.25% + 1.45% = 32.70%
100% - 32.70% = 67.30%
5148.80 / 67.30% = 7650.52
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Term
15. A new hire is relocated 300 miles
from their previous job and their new
employer reimburses the employee
the following: moving $2500.00,travel
$1200 ($200 meals),selling expenses $8000.00,pre-move expenses $1700 ($300 meals) and relocation bonus of $5000.00. Total reimbursement $18400.00. What amount is not Taxable?
A. $5400 B. $3700
C. $4200 D. $3500
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Definition
15. D PS 3.3-2
2500 + 1200 - 200 meals = 3500.00 |
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Term
16. An employee was paid $2,500 for pay period ending April 15 2015. Their current YTD wages are 25,000.00. He has 10% taken for 401k. Calculate FIT
using 25% and FICA using current rates.
A. FIT = 562.50 FICA = 141.25
B. FIT = 562.50 FICA = 191.25
C. FIT = 675.00 FICA = 172.13
D. FIT = 675.00 FICA = 191.25 |
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Definition
16. B PS 4.6-2
2500 x 10% = 250
2500 - 250 = 2,250.00
2250 x 25% = 562.50
2500 x 7.65% = 191.25 |
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Term
17. An employee was paid 1,500.00 for the current pay period. Their YTD wages are 54,343.10 and their current deductions are the following: union dues 15.00, 401k 12%, saving account 150.00 and pretax medical (125 plan) 80.00. Calculate FIT using 25% and FICA taxes using current rates.
A. FIT = 310.00 FICA = 80.23
B. FIT = 310.00 FICA = 108.63
C. FIT = 330.00 FICA = 108.63
D. FIT = 355.00 FICA = 94.86 |
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Definition
17. B PS 4.5-2 & 4.6-2
1500 x 12% = 180.00
1500 - 180 – 80 = 1240.00
1240 x 25% = 310.00
1500 - 80 = 1420.00
1420 x 7.65% = 108.63 |
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Term
18. An employee earned $94,800 for 2015. They had 10% deducted for 401k, $2,500 for FSA (125 plan), and $1,200 medical (pretax) and $1,200 for United Way. Calculate YTD Soc Sec and FIT using 15%.
A. FIT = 14,220.00 SocSec = 5,617.20
B. FIT = 14,220.00 SocSec = 6,969.15
C. FIT = 12,243.00 SocSec = 3,805.20
D. FIT = 12,243.00 SocSec = 5,648.20 |
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Definition
18. D PS 4.5-2, 4.5-7 & 6.7-3
94,800 x 10% = 9,480
94,800 - 9,480 - 2,500 - 1,200 = 81,620
81,620 x 15% = 12,243
94,800 - 2,500 - 1,200 = 91,100
91,100 x 6.2% = 5,648.20
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Term
19. An employee receives $500 weekly from a third party insurer for sick pay.
The employer contributed $37,500 and the employees contributed $12,500. What amount is included as taxable income?
A. $0.00
B. $125.00
C. $375.00
D. $500.00 |
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Definition
19. C PS 4.3-2 Note: Employees contributions that are paid with post
tax or after tax dollar and are not taxable
37,500 + 12,500 = 50,000
37,500 / 50,000 = 75%
500 x 75% = 375.00 |
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Term
20. An employee receives $400 per week (Sun-Sat paid on Friday) in sick
pay from a third party insurer. The insurer receives form W-4S asking that
$60 per week be withheld for FIT. The employee returned to work on Thursday after being out for 6 full weeks. What amount is the employee entitled to for sick pay and what amount is withheld for FIT?
A. SP = 400.00 FIT = 60.00
B. SP = 240.00 FIT = 60.00
C. SP = 240.00 FIT = 36.00
D. SP = 160 FIT = 24.00
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Definition
20. C PS 4.3-2
3 / 5 = .6
400 x .6 = 240.00
60 x .6 = 36.00 |
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Term
21. An employee receives $1,500 per month for 9 months in disability payments from a third party insurer. The employees pays 25% of the premiums in after tax payroll deductions and his employer pays the rest. Calculate the amount subject to FIT and FICA.
A. FIT = 10,125.00 FICA = 6,750.00
B. FIT = 10,125.00 FICA = 10,125.00
C. FIT = 13,500.00 FICA = 9,000.00
D. FIT = 13,500.00 FICA = 13,500.00 |
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Definition
21 A PS 4.3-2
1500 x 9 x 75% = 10125.00
1500 x 6 x 75% = 6750.00 |
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Term
22. An employee terminates employment with their employer. They elects to have their 401k balance ($35,000) paid directly to them. How much will they receive?
A. $24,150
B. $25,200
C. $28,000
D. $35,000 |
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Definition
22. C 35,000 x 20% = 7,000
35,000 - 7,000 = 28,000.00 |
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Term
23. Nonqualified stock options. An employee has 200 shares of stock
purchase at 5.50 per share. They sell all of his shares at a FMV of 8.25.
Calculate the total taxable wages.
A. $1,650.00
B. $1,100.00
C. $550.00
D. $0.00 |
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Definition
23. C PS 3.4-23
8.25 - 5.50 = 2.75
2.75 x 200 = 550.00 |
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Term
24. An employee’s normal salary is $700 per pay period. In the current pay period the employee has $120 added for imputed income for personal use of a company car. Calculate their net pay using 25% FIT and 6% SIT.
A. $503.07
B. $399.47
C. $383.07
D. $293.07 |
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Definition
24. C PS 3.5-2
700 + 120 = 820
820 x 25% = 205.00
820 x 7.65% = 62.73
820 x 6% = 49.20
820 - 205 - 62.73 - 49.20 = 503.07
503.07 - 120 = 383.07
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Term
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24. An employee’s normal salaryis
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$700 per pay period. In the currentpay period the employee has $120added
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for imputed income for personaluse of a company car. Calculate theirnet pay using 25% FIT and 6%SIT.
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A.$503.07
B.$399.47
C.$383.07
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D.$293.07
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Definition
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24. C PS3.5-2
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700 + 120 =820
820 x 25% =205.00
820 x 7.65% =62.73
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820 x 6% =49.20
820 - 205 - 62.73 - 49.20 =503.07
503.07 - 120 =383.07
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Term
25. An employee is reimbursedfor substantiated business mileage of200 miles for the month of May, at arate of .585 cents per mile. Calculatethe taxableamount.
A. 0
B. 6.00
C.5.00
D.68.00 |
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Definition
25. C PS 3.3-5 .585 - .56 = .025 x 200=
5.00 |
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Term
A tipped employee earned$115.00 from their employer and reported$310 as cash tips. Calculate FIT using15%
on regular wages and 25% ontip income, also calculate FICA.What amount will be withheld fromher check for FIT andFICA?
A. FIT = 94.75 FICA =32.51
B. FIT = 94.75 FICA =26.35
C. FIT = 90.99 FICA =24.01
D. FIT = 82.49 FICA =32.51 |
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Definition
26.D
Note: Cash tips are not given backto the employer so the Employeronly has 115.00 to pay all her taxes inthis example.
115 x 15% = 17.25 115 + 310 =425.00
310 x 25% = 77.50 425 x 7.65% =32.51
17.25 + 77.50 =94.75
Gross 115.00 FICA –32.51 FITW-82.49
= Net ofZero |
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Term
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27. A semiweekly depositorwithheld
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FIT of $26,325.00, FICA of$9,289.35,
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SIT 11,773.10 and had FUTA wagesof
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$164,413.30 for the current payroll.No
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employees have maxed out forFUTA
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taxable wages. What is therequired
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federal depositamount?
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A.$56,676.80
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B.$48,191.97
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C.$51,480.24
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D.$35,614.35
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Definition
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27. C Note: Keyword “No EE’smaxed
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out for FUTA wages yet” if EE’shave
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not maxed for FUTA then theyhave
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not maxed for SocSec. So theyare
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underwithheld based on wagesand
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the deposit should be based onactual
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wagespaid.
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FITW26,325.00
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FICA ER 12,577.62 – basedon
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$164,413.30
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FICA EE12,577.62
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Total51,480.24
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Term
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Term28
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28. A company’s gross payrollwas
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$41,516.28 and had a federalincome
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tax withholding liability of$3,710.21,
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FICA tax withheld $3,176.00,state
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income tax withheld is $1,211.96.What
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is the company’s total federaltax
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deposit?
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A. $5,843.33
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B. $9,231.88
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C.$10,062.21
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D.$11,274.17
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Definition
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28.C
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FITW3,710.21
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FICA ER 3,176.00 (41,516.28 x 7.65%=
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$3,176.00)
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FICA EE 3,176.00 (41,516.28 x 7.65%=
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$3,176.00)
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Total10,062.21
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Term
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29. An employee earns 6.75 perhour for a 40 hour week. On the lastweekly
payroll this employee worked49 hours. Using 25% for FIT and 6%for SIT calculate theirdisposable earnings.
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A. 361.13
B. 237.97
C.228.35
D.154.50
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Definition
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29. B PS 9.1-2 7.25 x 49 = 355.25 .5x
7.25 x 9 = 32.63 355.25 + 32.63 =387.88
25% + 6% + 7.65% = 38.65% 387.88x
38.65% = 132.35 387.88 – 149.91=
237.97
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Hint: can't make less thanfederal minimumwage
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