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Preparing Payroll

Quiz by Julie

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32 questions
Show answers
  • Q1
    A qualified retirement plan that provides most individuals with a deferred federal income tax benefit.
    401 K
    Qualified Retirement plan
    Individual Retirement Plan (IRA)
    Roth Individual Retirement plan
    20s
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  • Q2
    Paying an employee using electronic funds transfer is called
    direct deposit.
    individual retirement account.
    electronic funds transfer system.
    net pay.
    20s
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  • Q3
    A method of paying an employee based on the amount of sales the employee generates.
    commission
    hourly pay
    piece pay
    incentive pay
    20s
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  • Q4
    A federal tax paid for old age, survivors and disability insurance.
    Qualified Retirement Plan Tax
    Social Security Tax
    Tax Base
    Medicare Tax
    20s
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  • Q5
    A qualified retirement plan sponsored by an employer.
    401(h)
    401(c)
    401(k)
    401(d)
    20s
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  • Q6
    A deduction from total earnings for each person legally supported by a taxpayer, including the employee.
    None of these.
    Withholding allowance.
    Social Security Withholding.
    Withholding base.
    20s
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  • Q7
    The maximum amount of gross earnings on which a tax is calculated.
    Exemptions.
    Total Earnings.
    Tax Base.
    Withholdings.
    20s
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  • Q8
    A retirement plan approved by the Internal Revenue Service is
    401 (b)
    401 (k)
    qualified retirement plan.
    Roth individual retirement account.
    20s
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  • Q9
    A computerized cash payments system that transfers funds without the use of checks, currency or other paper documents.
    None of these.
    Electronic Funds Transfer
    Direct Deposit
    Net Pay
    20s
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  • Q10
    The total earnings paid to an employee after payroll taxes and other deductions.
    Gross Pay.
    Deductions.
    Total Earnings.
    Net Pay.
    20s
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  • Q11
    A qualified retirement plan that allows tax-free withdrawals from the account.
    Qualified Retirement Plan.
    401 K
    Roth Individual Retirement Account.
    Individual Retirement Plan.
    20s
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  • Q12
    A federal tax paid for hospital insurance.
    Medicare Tax.
    Medical Insurance Tax.
    Federal Medical Tax.
    Medicaid Tax.
    20s
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  • Q13
    Payroll records are used to
    to prepare payroll reports for the government.
    all of these.
    to determine when the tax base has been met.
    inform employees of their annual earnings
    20s
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  • Q14
    Qualified retirement plans are approved by
    a company act.
    the Federal government.
    an act of Senate.
    an act of Congress.
    20s
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  • Q15
    Total earnings are sometimes referred to as
    take-home pay.
    net pay.
    gross pay.
    disposable earnings.
    20s
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  • Q16
    Payroll taxes withheld represent a _____________ for an employer, until payment is made.
    asset
    revenue
    expense
    liability
    20s
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  • Q17
    When an employee's earnings exceed the tax base,
    no more social security tax is deducted.
    no more medicare is deducted.
    none of these.
    no more social security tax or medicare is deducted.
    20s
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  • Q18
    The amount of income tax withheld from each employee's total earnings is determined
    how often they are paid.
    from the number of withholding allowances.
    from their marital status.
    all of these.
    20s
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  • Q19
    The investment income in a Roth IRA is
    never subject to taxes as it is building a retirement.
    none of these.
    not subject to federal income taxes when withdrawn.
    tax deferred.
    20s
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  • Q20
    A business is required
    to only withhold what the employee desires from their salaries.
    by law to withhold Social Security, Medicare, and Retirement.
    to withhold optional amounts from the employees salaries.
    by law to withhold certain payroll taxes from employee salaries.
    20s
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