Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Use the percentage method of withholding, a FICA rate of 6.2%, a Medicare rate of 1.45%, an SDI rate of 1%, and a state
withholding tax of 3.4%. One withholding allowance is $73.08 when paid weekly.
1)
Larry Calanan has earnings of $520 in a week. He is single and claims 2 withholding allowances.
His deductions include FICA, Medicare, federal withholding, state disability insurance, state
withholding, union dues of $15, and charitable contributions of $21. Find his net pay.
1)
A)
$369.34
B)
$397.49
C)
$379.81
D)
$415.81
Solve the problem.
2)
Tom Darcy makes $3.25 for each chimney he sweeps. Find his gross earnings if he sweeps 16
chimneys.
2)
A)
$45.50
B)
$19.25
C)
$58.50
D)
$52.00
Find the Social Security tax (6.2%), Medicare tax (1.45%), and state disability insurance deduction (1%) for the employee.
Assume the employee is under the FICA and SDI maximums at the end of the current pay period and assume that
time–and–a–half is paid for any overtime in a 40–hour week. Round to the nearest cent if needed.
3)
Hours Reg FICA Medicare SDI
Employee Worked Rate Tax Tax Tax
Neely, P. 42.2 $11.10
3)
A)
$27.53, $6.44, $4.44
B)
$29.04, $6.79, $4.68
C)
$43.56, $10.19, $7.03
D)
$29.80, $6.97, $4.81
Solve the problem.
4)
Anita earns $12.50 per hour. Find her gross pay for 34.75 hours.
4)
A)
$434.38
B)
$434.48
C)
$434.39
D)
$434.28
5)
Roger‘s regular hourly rate is $13.16 per hour for a 40–hour work week. He is paid time–and–
a–half for all overtime work. One week Roger worked 49.5 hours. What would be his overtime
pay?
5)
A)
$139.27
B)
$651.42
C)
$713.93
D)
$187.53
6)
Sue works for Acme Manufacturing Company packing boxes of staples. She is paid $0.15 per box
packed. Last week she packed a total of 2122 boxes, of which 87 were packed during overtime
hours. What were her gross earnings for the week if time–and–a–half per box is paid for overtime?
6)
A)
$333.53
B)
$325.70
C)
$324.83
D)
$323.96
Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person’s
earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.
7)
Kay McClain is paid 6% commission on sales. During a recent week, she had sales of $6241.43 on
Monday, $1442.87 on Tuesday, and $2264.89 on Thursday. Find her Social Security tax, Medicare
tax, and SDI deduction for the week.
7)
A)
$37.01, $8.66, $5.97
B)
$28.59, $3.74, $4.61
C)
$23.22, $5.43, $3.74
D)
$31.64, $7.40, $5.10
Find the hours, rate, or earnings as specified.
8)
Snyder –6 9 6 6 8 7 ? ?
$8.67 ?
Find the number of regular hours, overtime hours (over 40), and overtime rate (time and a half).
8)
A)
27, 15, $17.34
B)
40, 2, $13.01
C)
42, 0, $13.01
D)
40, 2, $17.34
Solve the problem.
9)
ACME package delivery pays employees for each package they deliver. They are paid as follows:
1–10 packages $6.00 each
11–15 packages $7.50 each
16 or more packages $9.00 each
If Joe delivers 16 packages, what are his gross earnings?
9)
A)
$106.50
B)
$144.00
C)
$96.00
D)
$99.00
Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person’s
earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.
10)
Bill Fox is paid 6% commission on sales. During a recent week, he had sales of $13,821.81 and
allowances of $1551. Find his Social Security tax, Medicare tax, and SDI deduction for the week.
10)
A)
$51.42, $12.02, $8.29
B)
$45.65, $10.68, $7.36
C)
$45.28, $10.59, $7.30
D)
$57.19, $8.29, $9.22
Find the equivalent earnings.
11)
David‘s yearly salary is $14,560. What is his biweekly salary?
11)
A)
$606.67
B)
$1213.33
C)
$560.00
D)
$280
Calculate the total amount due to the IRS from the firm.
12)
Peter’s Landscaping collected $1017.37 FICA, $242.23 medicare, and $279.49 federal withholding
from employees.
12)
A)
$2556.46
B)
$3078.18
C)
$2798.69
D)
$1781.32
Find the hours, rate, or earnings as specified.
13)
Chang –7 9 –8 5 –29 0
$15.00 $22.50
Find the gross earnings for the week.
13)
A)
$44.00
B)
$472.50
C)
$652.50
D)
$435.00
Find the Social Security tax for the current pay period. Assume a 6.2% FICA rate up to a maximum of $115,000.
14)
Gross Earnings This Year: $111,062.36
Current Period Earnings: $7243
14)
A)
$204.93
B)
$244.13
C)
$449.07
D)
$237.93
Find the gross earnings. Use the overtime premium method. Overtime is paid at time–and–a–half for all hours over 40.
15)
David –9.5 11 10 11 8.75 –
$10.88
15)
A)
$600.48
B)
$546.72
C)
$820.08
D)
$602.48
Motorville Auto Parts pays salespeople as follows: $488 per week plus a commission of 1.1% on sales above $15,000
through $25,000 with 1.4% paid on sales in excess of $25,000. Find the gross earnings of the salesperson. (No commission
is paid on the first $15,000 of sales.)
16)
Employee Total Sales
Johnson, S. $18,400
16)
A)
$690.40
B)
$862.00
C)
$37.40
D)
$525.40
Solve the problem.
17)
Bob works for Allies Electronics making switches. He is paid $0.40 per switch. Last week he made
662 switches on regular time and 87 switches during overtime. Find his gross earnings for the week
if time–and–a–half per switch is paid for overtime.
17)
A)
$308.30
B)
$317.00
C)
$299.60
D)
$325.70
Calculate the total amount due to the IRS from the firm.
18)
Lake Shore Computers collected $719.50 FICA, $168.27 medicare, and $700.93 federal withholding
tax from employees.
18)
A)
$2308.20
B)
$1756.97
C)
$1588.70
D)
$2476.47
Solve the problem.
19)
Mike Penn is an employee of Acme Manufacturing Company. He has an 8–hr workday and each
day is paid $0.30 for each unit produced or the hourly rate, whichever is greater. His hourly rate is
$6.50 per hour. Last week he produced 147 units on Monday, 167 units on Tuesday, 124 units on
Wednesday, 136 units on Thursday, and 147 units on Friday. What were his gross earnings for the
week?
19)
A)
$296.50
B)
$243.25
C)
$308.00
D)
$260.00
20)
Anita‘s regular hourly rate is $14 for a 40–hour work week. She is paid time–and–a–half for each
hour worked on weekends. One week Anita worked 40 hours from Monday through Friday and 4
hours on Saturday. Find her gross pay for the week.
20)
A)
$112
B)
$644
C)
$616
D)
$560
Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate.
Round to the nearest cent.
21)
$987.56
21)
A)
$612.30, $143.20
B)
$61.23, $14.32
C)
$62.23, $15.32
D)
$6.12, $1.43
Find the Social Security tax (6.2%), Medicare tax (1.45%), and state disability insurance deduction (1%) for the employee.
Assume the employee is under the FICA and SDI maximums at the end of the current pay period and assume that
time–and–a–half is paid for any overtime in a 40–hour week. Round to the nearest cent if needed.
22)
Hours Reg FICA Medicare SDI
Employee Worked Rate Tax Tax Tax
Lodge, T. 42.8 $7.30
22)
A)
$19.37, $4.53, $3.12
B)
$29.06, $6.80, $4.69
C)
$18.10, $4.23, $2.92
D)
$20.00, $4.68, $3.23
Find the Social Security tax and Medicare tax on the annual gross income of a self–employed individual. For a
self–employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.
23)
Larry Barnes, management consultant, earned $65,897.05
23)
A)
$4085.62, $955.51
B)
$8071.23, $1811.01
C)
$8171.23, $1911.01
D)
$4085.62, $1911.01
Find the gross earnings for the employee.
24)
Westinghouse Paving pays its salespeople the following commissions.
8.5% of all sales
4.25% of all sales over $6800
Employee Total Sales
Joyce, L. $12,600
24)
A)
$1606.50
B)
$82,450.00
C)
$1317.50
D)
$824.50
Explanation:
Solve the problem.
25)
Suppose pumpkin pickers are paid as follows:
1–200 pumpkins picked $0.12 each
201–350 pumpkins picked $0.16 each
350 or more pumpkins picked $0.19 each
If Nicole picks 288 pumpkins, what are her gross earnings?
25)
A)
$34.56
B)
$46.08
C)
$38.08
D)
$40.72
Explanation:
Find the weekly gross earnings. Overtime is paid at the time–and–a–half rate for hours over 40 per week.
26)
Employee Weekly Salary Hours Worked Gross Earnings
Donald $760 52
26)
A)
$1159.00
B)
$1102.00
C)
$1160.00
D)
$1044.00
Explanation:
Explanation:
Find the federal withholding tax for the employee. Use the wage bracket method.
27)
Employee Married? Allowances Earnings
Lieberman, B. yes 2$559.15 weekly
27)
A)
$38
B)
$25
C)
$26
D)
$36
Use the percentage method of withholding to find the federal withholding tax, a 6.2% FICA rate to find the FICA tax, and
1.45% to find the Medicare tax. Then find the net pay for the employee. Assume that the employee has not earned over
$115,000 so far this year.
8
28)
Carla LaFong has gross earnings of $3576.57 weekly. She is married and has 3 withholding
allowances.
28)
A)
$2915.12
B)
$3302.96
C)
$2641.51
D)
$3964.41
Find the Social Security tax and Medicare tax on the annual gross income of a self–employed individual. For a
self–employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.
29)
Ted Houston, accountant, earned $57,351.30
29)
A)
$3555.78, $831.59
B)
$7111.56, $1663.19
C)
$3555.78, $1663.19
D)
$7011.56, $1563.19
Use the percentage method of withholding to find the federal withholding tax, a 6.2% FICA rate to find the FICA tax, and
1.45% to find the Medicare tax. Then find the net pay for the employee. Assume that the employee has not earned over
$115,000 so far this year.
10
30)
Erika Du Mesnil has gross earnings of $7914.27 semimonthly. She is married and has 5 withholding
allowances.
30)
A)
$6523.68
B)
$7308.83
C)
$5918.24
D)
$8699.42
31)
Fred Jones has gross earnings of $4723.08 biweekly. He is married and has 10 withholding
allowances.
31)
A)
$4291.03
B)
$3929.72
C)
$4361.77
D)
$4793.82
Solve the problem.
32)
Allied Industries pays at the time–and–a–half rate for all time worked over 8 hours in any one day
no matter how many hours are worked in a week. Ken Warner, an employee of Allied Industries,
makes $9.50 an hour as his regular rate of pay. Last week he worked 10 hours on Monday, 7 hours
on Tuesday, and 8 hours on Friday. What were his gross earnings for the week?
32)
A)
$247.00
B)
$257.20
C)
$248.70
D)
$245.20
33)
Barbara is paid $12.98 per hour. She is paid time–and–a–half for overtime work. What is her
overtime rate?
33)
A)
$15.58
B)
$19.47
C)
$6.49
D)
$14.48
34)
Acme Industries pays at the time–and–a–half rate for all time worked over 8 hours in any one day
no matter how many hours are worked in a week. Susan Jones, an employee of Acme Industries,
makes $14.32 an hour as her regular rate of pay. Last week she worked 10 hours on Monday, 6.5
hours on Tuesday, 10.25 hours on Wednesday, 4 hours on Thursday, and 12 hours on Friday. What
were her gross earnings for the week?
34)
A)
$622.25
B)
$639.25
C)
$744.25
D)
$671.25
Find the weekly gross earnings. Overtime is paid at the time–and–a–half rate for hours over 40 per week.
35)
Employee Weekly Salary Hours Worked Gross Earnings
Kathy $808.00 42
35)
A)
$911.60
B)
$825.60
C)
$868.60
D)
$929.20
Solve the problem.
36)
Brandy’s Gift House pays employees for each gift they gift wrap. Assume they are paid as follows:
1–10 gifts $4.00 each
11–15 gifts $5.00 each
16 or more gifts $6.00 each
If Lee wraps 14 gifts, what are her gross earnings?
36)
A)
$64.00
B)
$56.00
C)
$60.00
D)
$70.00
Find the hours, rate, or earnings as specified.
37)
Howard –7–6 6 –6 ? ?
$14.83 ?
Find the number of regular hours, overtime hours (over 40), and the overtime rate (time and a half).
37)
A)
19, 6, $22.25
B)
25, 0, $29.66
C)
13, 12, $29.66
D)
25, 0, $22.25
Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person’s
earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.
38)
Beth Conners worked 42.4 hours last week at Creative Kitchens. She is paid $6.43 per hour, plus
time–and–a–half for overtime. Find her Social Security tax and Medicare tax for the week.
38)
A)
$15.95, $3.73
B)
$16.90, $3.95
C)
$25.35, $5.93
D)
$17.38, $4.07
Find the Social Security tax (6.2%), Medicare tax (1.45%), and state disability insurance deduction (1%) for the employee.
Assume the employee is under the FICA and SDI maximums at the end of the current pay period and assume that
time–and–a–half is paid for any overtime in a 40–hour week. Round to the nearest cent if needed.
39)
Hours Reg FICA Medicare SDI
Employee Worked Rate Tax Tax Tax
Hudson, R. 43.17 $7.03
39)
A)
$17.43, $4.08, $2.81
B)
$18.82, $4.40, $3.03
C)
$28.22, $6.60, $4.55
D)
$19.51, $4.56, $3.15
Use the state income tax rate given to find the state withholding tax for the following employee. Round to the nearest
cent.
40)
Employee
Gross Weekly
Earnings
State Income
Tax Rate
Mueller, B. $249.64 2.9%
40)
A)
$723.96
B)
$7.24
C)
$72.40
D)
$0.01
Solve the problem.
41)
Jennifer Jones is an employee of Acme Manufacturing Company. She has an 8–hr workday and
each day is paid $0.75 for each unit produced or the hourly rate, whichever is greater. Her hourly
rate is $8.40 per hour. Last week she produced 107 units on Monday, 107 units on Tuesday, 80 units
on Wednesday, 86 units on Thursday, and 103 units on Friday. What were her gross earnings for
the week?
41)
A)
$372.15
B)
$380.95
C)
$368.15
D)
$362.15
Find the gross earnings.
42)
Total sales: $5046
Returns and Allowances: $440
Rate of commission: 10%.
42)
A)
$504.60
B)
$460.60
C)
$64.60
D)
$548.60
Solve the problem.
43)
Chuck earns $11 per hour for a 40–hour work week and time–and–a–half for overtime. One week
he worked 44 hours. Find his gross pay for the week.
43)
A)
$440.00
B)
$726.00
C)
$484.00
D)
$506.00
Find the Social Security tax for the current pay period. Assume a 6.2% FICA rate up to a maximum of $115,000.
44)
Gross Earnings This Year: $110,224
Current Period Earnings: $5295
44)
A)
$296.11
B)
$289.91
C)
$328.29
D)
$32.18
Find the equivalent earnings.
45)
Barbara earns $436 per biweekly pay period. How much does she earn in a month?
45)
A)
$11,336.00
B)
$472.33
C)
$218.00
D)
$944.67
Find the federal withholding tax for the employee. Use the wage bracket method.
46)
Employee Married? Allowances Earnings
VanHarpen, D. yes 1$533.03 weekly
46)
A)
$31
B)
$30
C)
$33
D)
$32
Calculate the total amount due to the IRS from the firm.
47)
Hargray Telecommunications collected $57,733.96 FICA, $13,746.18 medicare, and $18,273.40
federal withholding from employees.
47)
A)
$161,233.68
B)
$147,487.50
C)
$179,507.08
D)
$103,499.72
Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person’s
earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.
48)
Donald Ruffano is paid a salary of $421 per week plus a commission of 4% on sales. During a
recent week, he had sales of $11,223.64. Find his Social Security tax, Medicare tax, and SDI
deduction for the week.
48)
A)
$26.79, $4.49, $4.32
B)
$26.10, $6.10, $4.21
C)
$53.94, $12.61, $8.70
D)
$27.83, $6.51, $4.49
Use the percentage method of withholding to find the federal withholding tax, a 6.2% FICA rate to find the FICA tax, and
1.45% to find the Medicare tax. Then find the net pay for the employee. Assume that the employee has not earned over
$115,000 so far this year.
16
49)
Thomas McKnight has gross earnings of $22,012.15 monthly. He is married and has 2 withholding
allowances.
49)
A)
$17,104.40
B)
$15,420.47
C)
$25,235.97
D)
$20,328.22
Find the hours, rate, or earnings as specified.
50)
Hulman –610 11 7– – ? ?
$8.03 ?
Find the number of regular hours, overtime hours (over 8 in a day), and overtime rate (time and a
half).
50)
A)
27, 7, $16.06
B)
29, 5, $12.05
C)
34, 0, $12.05
D)
29, 5, $16.06
Use the percentage method of withholding, a FICA rate of 6.2%, a Medicare rate of 1.45%, an SDI rate of 1%, and a state
withholding tax of 3.4%. One withholding allowance is $73.08 when paid weekly.
51)
Charles Nave, bank teller, has weekly earnings of $610. He is married and claims 3 withholding
allowances. His deductions include FICA, Medicare, federal withholding, state disability insurance,
state withholding, and credit union savings of $50. Find his net pay.
51)
A)
$425.49
B)
$453.51
C)
$463.21
D)
$513.21
Solve the problem.
52)
Al’s Recycling Center pays local children $0.40 for each pound of aluminum cans they bring in. If
Bobby brings in 20 pounds of cans, what are his gross earnings?
52)
A)
$9.20
B)
$20.40
C)
$6.80
D)
$8.00
Use the percentage method of withholding to find the federal withholding tax, a 6.2% FICA rate to find the FICA tax, and
1.45% to find the Medicare tax. Then find the net pay for the employee. Assume that the employee has not earned over
$115,000 so far this year.
19
53)
Robert Stang has gross earnings of $603.16 weekly. He is married and has 3 withholding
allowances.
53)
A)
$579.60
B)
$557.01
C)
$580.57
D)
$534.42