How may federal income tax be withheld from separation pay and accrued vacation
wages totaling $20,000 that are paid at the time of termination and identified
separately on the employee's pay stub, if the employee has been paid $25,000 so far
this year and had income tax and had income tax withheld from her most recent wage
payment?
A. using the aggregate method only
B. using the prior 12 months' tax rate
C. at the optional flat rate for all payouts at termination only
D. at the optional flat rate or using the aggregate method
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D. at the optional flat rate or using the aggregate method
Employer-sponsored athletic facilities may be nontaxable fringe benefits if the:
A. employer requires substantiation of the amount, time, and business purpose of the
facilities' use
,B. employer incurs no substantial additional cost, except labor, to provide the
facilities
C. facilities are on the employers' premises
D. facilities qualify as a de minimis fringe
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C. facilities are on the employer's premises
Employers in non-credit reduction states that pay their state unemployment taxes on
time can deduct up to what percentage from the full FUTA tax rate in calculating their
FUTA tax payments?
A. 0.6%
B. 4.5%
C. 5.4%
D. 6.0%
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C. 5.4%
On a company's financial statements, payroll tax expense appears in the:
A.Balance Sheet
B. accrued payroll
C. salaries expense
D. income statement
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D. income statement
,What is the chief advantage of a vendor payroll package>
A. reduced processing time
B. inexpensiveness and ease of installation
C. no required major in-house system development
D. lower cost than a service provider contract
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C. No required major in-house system development
Employee deferrals under section 401(k) are subject to which taxes?
A. federal income, social security and Medicare taxes
B. social security and Medicare taxes
C. social security, Medicare and FUTA taxes
D. federal income, social security, Medicare and FUTA taxes
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C. social security, Medicare and FUTA taxes
Which of the following steps is LEAST important during the parallel testing phase of a
new payroll system?
A. the testing of employee earnings and deductions accruacy
B. the verification of employees transferred to the new system from the old system
C. the verification of tax withholding calculations for employees
D. testing the functionality of a wage attachment process
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, D. testing the functionality of a wage attachment process
During 2017. an employee worked for company A and quit after earning $130,000.
later in the same year the employee was hired by company B. With respect to social
security, Medicare and FUTA, how should company B treat the employee's earnings as
of the first wage payment?
A. start accumulating social security, Medicare, and FUTA wages, and withhold both
social security and Medicare taxes
B. Start accumulating Medicare wages only and withhold medicare tax
C. start accumulating social security, medicare and FUTA wages, but withhold
medicare tax only
D. Start accumulating medicare wages only, but withhold both social security and
medicare taxes
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A. start accumulating social security, Medicare, and FUTA wages, and
withhold both social security and Medicare taxes
To build morale and motivate staff, a manager must:
A. give good reviews and raises
B. reward "stars" and promote competition within each team
C. delegate accountability to staff members
D. be sincere and specific with praise
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D. be sincere and specific with praise
wages totaling $20,000 that are paid at the time of termination and identified
separately on the employee's pay stub, if the employee has been paid $25,000 so far
this year and had income tax and had income tax withheld from her most recent wage
payment?
A. using the aggregate method only
B. using the prior 12 months' tax rate
C. at the optional flat rate for all payouts at termination only
D. at the optional flat rate or using the aggregate method
Give this one a try later!
D. at the optional flat rate or using the aggregate method
Employer-sponsored athletic facilities may be nontaxable fringe benefits if the:
A. employer requires substantiation of the amount, time, and business purpose of the
facilities' use
,B. employer incurs no substantial additional cost, except labor, to provide the
facilities
C. facilities are on the employers' premises
D. facilities qualify as a de minimis fringe
Give this one a try later!
C. facilities are on the employer's premises
Employers in non-credit reduction states that pay their state unemployment taxes on
time can deduct up to what percentage from the full FUTA tax rate in calculating their
FUTA tax payments?
A. 0.6%
B. 4.5%
C. 5.4%
D. 6.0%
Give this one a try later!
C. 5.4%
On a company's financial statements, payroll tax expense appears in the:
A.Balance Sheet
B. accrued payroll
C. salaries expense
D. income statement
Give this one a try later!
D. income statement
,What is the chief advantage of a vendor payroll package>
A. reduced processing time
B. inexpensiveness and ease of installation
C. no required major in-house system development
D. lower cost than a service provider contract
Give this one a try later!
C. No required major in-house system development
Employee deferrals under section 401(k) are subject to which taxes?
A. federal income, social security and Medicare taxes
B. social security and Medicare taxes
C. social security, Medicare and FUTA taxes
D. federal income, social security, Medicare and FUTA taxes
Give this one a try later!
C. social security, Medicare and FUTA taxes
Which of the following steps is LEAST important during the parallel testing phase of a
new payroll system?
A. the testing of employee earnings and deductions accruacy
B. the verification of employees transferred to the new system from the old system
C. the verification of tax withholding calculations for employees
D. testing the functionality of a wage attachment process
Give this one a try later!
, D. testing the functionality of a wage attachment process
During 2017. an employee worked for company A and quit after earning $130,000.
later in the same year the employee was hired by company B. With respect to social
security, Medicare and FUTA, how should company B treat the employee's earnings as
of the first wage payment?
A. start accumulating social security, Medicare, and FUTA wages, and withhold both
social security and Medicare taxes
B. Start accumulating Medicare wages only and withhold medicare tax
C. start accumulating social security, medicare and FUTA wages, but withhold
medicare tax only
D. Start accumulating medicare wages only, but withhold both social security and
medicare taxes
Give this one a try later!
A. start accumulating social security, Medicare, and FUTA wages, and
withhold both social security and Medicare taxes
To build morale and motivate staff, a manager must:
A. give good reviews and raises
B. reward "stars" and promote competition within each team
C. delegate accountability to staff members
D. be sincere and specific with praise
Give this one a try later!
D. be sincere and specific with praise
