Numerous Payroll-Related Concepts
1. The pay period intervals biweekly and semimonthly are
similar in that the same number of pay periods occur in either method.
True
False
2. A salaried employee is paid the same amount of money even
though the hours worked may vary from pay period to pay period.
True
False
3. Carrie Blue earns a salary of $26,480.00 per year. If
Carrie is paid biweekly, her gross paycheck would be $1,190.00.
True
False
4. An employee’s overtime rate of pay is normally 1.2 times
the regular hourly rate.
True
False
5. Gross wages = days worked × rate per hour.
True
False
6. The percent of social security tax charged and the amount
of salary subject to the tax can change from year to year.
True
False
7. Employee contributions to medicare are limited on an
annual basis.
True
False
8. Wages that are not taxable are referred to as
“exempt wages.”
True
False
9. If you receive paychecks 12 times a year at fixed
intervals, you are probably being paid:
weekly
bimonthly
biweekly
monthly
none of the above
10. If Kevin is paid an hourly rate of $18.90 and he earns
one and one half times his regular rate for overtime, his overtime rate would
be:
$22.45
$28.35
$18.90
$9.45
none of the above
11. A variable commission scale is normally based on:
gross sales
a different commission for different levels of sales
fixed commission rates
a fixed level of sales
none of the above
12. Patrick is an automobile salesman who receives a salary
of $550.00 per week plus a commission of 5 percent on all sales. During a
4-week period he sold $49,500.00 worth of cars. What were Patrick’s average
earnings?
$872.90
$550.00
$1,550.00
$1,168.75
none of the above
13. Social security and medicare are:
calculated based upon the W-4 form
only paid by the employer
withheld from the employee’s paycheck and matched by the
employer
only paid by the employee
none of the above
14. The amount of federal income tax to be withheld from
employee’s paychecks can be calculated by:
either the percentage method or the wage-bracket table
method
the percentage-bracket method
only by the percentage method
only by the wage-bracket method
none of the above
15. The withholding of 7.65% of the first $87,900 of
earnings in a year includes:
medicaid tax
medicare tax
social security and medicare tax
social security tax
none of the above
