Question 1

What form do employees complete to determine their withholding allowances?

Accepted Answer

Form W-4

Answer

Form 1040

Answer

Form 1099

Answer

Form W-2

Question 2

What is the Medicare tax rate mentioned in the text?

Accepted Answer

1.45%

Answer

6.2%

Answer

1.25%

Answer

2.5%

Question 3

What is another term for 'total earnings' before deductions?

Accepted Answer

gross pay

Answer

basic salary

Answer

taxable income

Answer

net pay

Question 4

What taxes are included under the Federal Insurance Contributions Act (FICA)?

Accepted Answer

Social Security tax and Medicare tax.

Answer

Federal income tax and estate tax.

Answer

Corporate tax and sales tax.

Answer

Property tax and state income tax.

Question 5

What determines the amount of federal income tax withheld from an employee's earnings?

Accepted Answer

The employee's total earnings, marital status, and number of withholding allowances.

Answer

Only the employee's salary amount.

Answer

The employee's job title.

Answer

The length of employment.

Question 6

What is the definition of payroll in a business context?

Accepted Answer

The total amount earned by all employees for a pay period.

Answer

The deductions made from employee wages.

Answer

The total salaries paid each month.

Answer

The amount an employee earns annually.

Question 7

How is net pay calculated?

Accepted Answer

By subtracting total deductions from total earnings.

Answer

By calculating total earnings without deductions

Answer

By adding all earnings together

Answer

By multiplying earnings by tax rates

Question 8

How does claiming dependents on your tax return affect your tax liability?

Accepted Answer

It can reduce the amount of taxable income and tax owed

Answer

It increases your tax rate

Answer

It has no effect on taxes

Answer

It only affects state taxes

Question 9

What is a dependent for tax purposes?

Accepted Answer

A person whom you support financially and who qualifies you for certain tax benefits

Answer

Any friend that lives with you

Answer

Anyone over the age of 18

Answer

A person who pays you rent

Question 10

What is the primary difference between payroll and salary?

Accepted Answer

Payroll refers to the total amount of money paid to employees, while salary is a fixed regular payment.

Answer

Payroll is only for hourly workers.

Answer

Salary is the total payment for all employees.

Answer

Salary is always paid weekly.

Question 11

How often is salary usually paid compared to payroll?

Accepted Answer

Salary is usually paid on a regular schedule, such as monthly or biweekly, while payroll can be processed more frequently.

Answer

Salary is paid daily, while payroll is monthly.

Answer

Salary payments and payroll processing are the same thing.

Answer

Salary is only paid once a year, while payroll is weekly.

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