HTMLENTITY#8203HTMLENTITYWhich of the following is included in a job
description?
a. HTMLENTITY#8203HTMLENTITYSecondary duties
b. HTMLENTITY#8203HTMLENTITYEducation requirements and special skills
needed
c. HTMLENTITY#8203HTMLENTITYAttendance requirements
d. HTMLENTITY#8203HTMLENTITYJob’s essential functions, including any
physical requirements
e. HTMLENTITY#8203HTMLENTITYAll of the above
Under FICA only, cash tips of more than $100 in a month are defined as taxable wages.
a. True
b. False
HTMLENTITY#8203HTMLENTITYAn employer can use a credit card to pay the
balance with Form 940 (under $500.)
a. True
b. False
ANSWER: True
The FLSA requires that workers receive overtime pay of twice the employees’ regular
hourly rate for hours worked on Sunday.
a. True
b. False
The Social Security Act ordered every state to set up an unemployment compensation
program.
a. True
b. False
The special withholding allowance may be claimed only by those employees who do
not itemize deductions on their income tax returns.
a. True
b. False
If an employee has more than one employer during the current year, the taxable wage
base applies separately to each of those employers, unless one employer has transferred
the business to the second.
a. True
b. False
Workers’ compensation insurance premiums for employers vary according to the
different degrees of danger in various classes of jobs and the employers’ accident
experience rate.
a. True
b. False
Since the credit against the FUTA tax (for SUTA contributions) is made on Form 940,
the employer’s payroll tax entries should include the FUTA tax at the gross amount
(6.0%).
a. True
b. False
Which of the following deposit requirements pertains to a monthly depositor who has
accumulated employment taxes of $2,900 at the end of October?
a. No deposit is required.
b. The undeposited taxes should be carried over to the end of November.
c. The taxes must be deposited on or before November 15.
d. The taxes must be deposited on or before the next banking day.
e. None of the above.
Once a company attains the status of employer for FUTA purposes, that status continues
for four calendar years.
a. True
b. False
When making a payment of FUTA taxes, the employer must make the payment by the:
a. end of the month after the quarter.
b. 15th of the month after the quarter.
c. 10th of the month after the quarter.
d. end of the following quarter.
e. same day of the FICA and FIT deposits.
Tax withholdings from employees’ pays reduce the amount of the debit to Salary
Expense in the payroll entry.
a. True
b. False
Employees may use Form 4070 to report the amount of their tips to their employers.
a. True
b. False
Nondiscretionary bonuses are part of the determination of the regular rate of pay.
a. True
b. False
In order to obtain the maximum credit allowed against the federal unemployment tax,
the employer must have paid its SUTA contributions by the due date of Form 940.
a. True
b. False
The Federal Insurance Contributions Act levies a tax upon the gross earnings of
selfemployed persons.
a. True
b. False
HTMLENTITY#8203HTMLENTITYThe EVerify program is a system to check the:
a. HTMLENTITY#8203HTMLENTITYAge of new hires
b. HTMLENTITY#8203HTMLENTITYVesting status of all employees
c. HTMLENTITY#8203HTMLENTITYHealth status of employees on medical leave
d. HTMLENTITY#8203HTMLENTITYSocial Security status of new hires
e. HTMLENTITY#8203HTMLENTITYEmployment eligibility of new hires
If the third decimal place is less than 5, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all that
follow.
Refer to Instruction 31. During 20, Garr was paid a weekly salary of $2,540. The
amount of FICA to be withheld from the following payments is:
OASDIHI
a)For the 50th week____________________
b)For the 51st week____________________
c)For the 52nd week____________________
Services performed in the employ of a religious organization that is exempt from
federal income tax are also exempt from FUTA coverage.
a. True
b. False
An employer will use the payroll register to keep track of an employee’s accumulated
wages.
a. True
b. False
The FLSA requires that workers receive overtime pay for all hours worked in excess of
40 in a workweek.
a. True
b. False
For which of the following payments is the employer required to withhold federal
income taxes?
a. Advances made to sales personnel for traveling expenses
b. Tipped employee’s monthly tips of $120
c. Deceased person’s wages paid to the estate
d. Minister of Presbyterian church
e. All of the above
If an employee, who works two or more separate jobs, pays OASDI taxes on wages in
excess of the taxable wage base, the employee is entitled to a refund of the
overpayment.
a. True
b. False
There is no limit to the amount that an employer can contribute in an employee’s
SIMPLE retirement account.
a. True
b. False
FUTA tax deposits cannot be paid electronically.
a. True
b. False
A college may employ its own fulltime students at 85 percent of the minimum wage.
a. True
b. False
The FLSA defines a tipped employee as one who regularly receives tips of more than
$20 a month.
a. True
b. False
Exempt professional employees are exempt from all provisions of the FLSA—
minimum wages, overtime pay, and equal pay.
a. True
b. False
Which of the following records lists all employees who earn remuneration, the amount
of remuneration, the deductions, and the net amount paid for each payroll period?
a. Employee history record
b. Payroll register
c. Change in payroll rate form
d. Reference inquiry form
e. None of the above
Which of the following laws protect employees against losses due to workrelated
injury:
a. Workers’ Compensation
b. Federal Wage and Hour
c. Family and Medical Leave
d. State Disability
e. Federal Unemployment
A federal unemployment tax is levied on:
a. employees only.
b. both employers and employees.
c. employers only.
d. government employers only.
e. no one.
Under the piecerate system, workers are paid according to their output.
a. True
b. False
FICA Taxes Payable—OASDI is a liability account debited for the employer’s portion
of the FICA tax.
a. True
b. False