Payroll Accounting 2020 6th Edition Solution Manual

Payroll Accounting 2020 6th Edition Solution Manual

























The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law?
T/F -CORRECT ANSWER- True

All states have set their minimum wage to be the same as the federal government.
T/F -CORRECT ANSWER- False

Under FICA, which of the following definitions describes an employee in an employee-employer relationship?

A. a person who provides a service as an independent trade or business
B. 1099 employee
C. Employs workers
D. Individual who performs services in a covered employment -CORRECT ANSWER- D. Individual who performs services in a covered employment

What does the abbreviation SECA stand for?
A. Self-Employment Contributions Act
B. Self-Employed Contributions Act
C. Self-Established Contributions Act
D. Self-Entertainment Contributions Act -CORRECT ANSWER- A. Self-Employment Contributions Act

The amount of Federal Income Taxes (FIT) to be withheld is determined after subtracting from the employee's gross wages and state taxes.
T/F -CORRECT ANSWER- False

FIT=Gross- Pretax- 401(k)

What position is included under the definition of employees for FUTA purposes?
A. Independent contractors
B. Insurance agents paid solely on commission
C. Student nurses
D. Corporate Officer, such as CEO and CFO -CORRECT ANSWER- D. Corporate Officer, such as CEO and CFO

Form 941 is used by employers to make their quarterly return of FICA taxes and withheld income taxes.
T/F -CORRECT ANSWER- True

Under the FLSA, wages include sales commissions and bonuses paid for employee performance
T/F -CORRECT ANSWER- True

Which workers are exempt from all FLSA requirements?
A. Line Cooks earning less than $200 a week
B. Taxicab drivers
C. Fast-food restaurant employees
D. None of the above -CORRECT ANSWER- D. None of the above

Which of the following is a factor considered in determining coverage of interstate employees?
A. Location of employee's residence
B. Place where work is localized
C. Both A and B
D. None of the above -CORRECT ANSWER- C. Both A and B

Which of the following CAN be included in a cafeteria plan?
A. Educational Assistance
B. Health savings account
C. Group term life-insurance ($50,000 of coverage)
D. Dependent group term life-insurance -CORRECT ANSWER- B. Health savings accounts

What taxes are imposed under the Social Security Act?
A: Three Taxes on employers
B: One taxes on employees
C: Taxes on the gross earnings of the self-employed
D: None of the above -CORRECT ANSWER- D. None of the above

Employees paid semi-monthly receive earnings every two weeks.
T/F -CORRECT ANSWER- False

What does SECA do?
A. Social security taxes done on employees on a state level