Payroll Accounting(Quick Test #2)

1. The total amount of hourly wages before the withholdings for taxes and other deductions is known as __________ wages.

2. An hourly-paid employee’s take home pay is also known as the employee’s net pay.

3. Salaried managers and executives who are not entitled to receive overtime compensation are referred to as __________ employees.

4. A company’s outside accountant is not considered to be an employee of the company. Rather, the accountant is considered to be an __________ contractor.

5. Payroll withholdings are reported on the employer’s balance sheet as __________ until the withholdings are remitted.

6. Employer-paid insurance, holidays, and vacations are referred to as fringe __________.

7. An employee is paid $10 per hour. During the past week the employee worked four 8-hour days and one 10-hour day. Assuming that overtime is paid at a rate of time and one-half, the employee’s total gross pay for the week is $__________.

8. The amount of each employee’s federal income tax withholdings is based on the information indicated by the employee on the federal form W- __________.

9. Payroll withholdings are likely to be classified as __________ liabilities.

10. FICA is the combination of Social Security tax and __________ tax.

11. Assume that a company’s highest paid employee earns $120,000 during the year. Is it true or false that in most years half of the FICA tax remitted to the federal government is withheld from the employee and half is an expense of the employer?

12. Federal unemployment tax is withheld from an employee’s wages or salary.

13. Federal income tax withheld from an employee’s pay is matched by the employer.

14. Social Security tax applies to every dollar of each employee’s wages or salary.

15. The Medicare tax applies to every dollar of each employee’s wages or salary.

16. The State unemployment tax applies to every dollar of each employee’s wages or salary.

17. A federal tax identification number is also referred to as EIN, or __________ identification number.

18. A company is more likely to issue which of the following federal forms to its outside accountant?

19. The free IRS publication, __________ E, is entitled Employer’s Tax Guide.

20. EFTPS is the acronym for __________ Federal Tax Payment System.

21. Stockholders of a corporation who work in the corporation are also considered to be employees of the corporation.

22. Employees with low salaries who cannot control the number of hours they work are referred to as __________ employees for overtime pay.

23. The Wage and Tax Statement which must be given to employees by January 31 is the federal form __________.

24. The insurance protection for employees injured on the job is known as worker __________ insurance.

25. Vacation pay that has been earned, but has not yet been taken or paid to the employee is known as __________ vacation pay.