Mark Is Paid $0.50 Per Unit Under a Piece Rate System. Mark Is Paid Biweekly, the First

1. An employee is paid $0.50 per unit under a piece rate system. During the current biweekly pay period the employee worked 47 hours the first week and produced 920 units; and in the second week worked 46 hours producing 835 units. Calculate the employee’s biweekly gross pay.

A. $877.50

B. $939.01

C. $941.14

D. $1061.58

2. Under a piece rate system; a company’s production workers receive $0.32 for each unit produced during regular hours and 1 1/2 times for any units produced during overtime hours. During the workweek an employee produced 1400 units in the 1st 40 hours and 320 in the next 5 hours. Calculate the employee’s total earnings for the workweek.

A. $678.40

B. $642.13

C. $601.60

D. $550.40

3. An employee’s base rate of pay is $9.00 and also receives a $1.50 per hour shift differential for working after 7pm. During one workweek she worked 45 hours (12.50 hours are with shift pay). Calculate her total earnings.

A. $446.25

B. $447.30

C. $457.50

D. $502.50

4. An employee’s is paid an hourly rate of $10.00. During the current workweek the employee worked 47 hours and received a $100 nondiscretionary bonus. Calculate the employee’s gross pay for the workweek.

A. $570.00

B. $605.00

C. $612.46

D. $697.37

5. An employee is scheduled to work 37.50 per week, with an annual salary of $25,000.00. The company pays biweekly and the employee has the following deduction; union dues $25.00, 401K 10% and child support for $25.00. Calculate the hourly rate of pay.

A. $10.82

B. $11.54

C. $12.02

D. $12.82

6. Calculate the gross pay due under the FLSA for an exempt employee, paid biweekly. Normal workweek 37.50 hours, weekly salary 487.50. Employee worked 43.00 hours 1st week and 38 hours the 2nd week.

A. $1053.00

B. $1032.50

C. $994.50

D. $975.00

7. A nonexempt salaried employee works 35 hours a week and is paid $20,020.00 annually. During the current pay period they worked 39 hours in the 1st week and 40 hours in the 2nd week. Calculate their biweekly earnings.

A. $770.00

B. $791.40

C. $852.50

D. $946.00

8. A nonexempt agrees to a fixed salary of $500.00 per week. Michael worked 48 hours one week. Calculate his earnings for that week.

A. $541.68

B. $550.00

C. $625.04

D. $650.00

9. Under the Belo plan an employee is guarantee a weekly salary of $427.50 for working 45 hours a week. Calculate their earnings when they work 50 hours in one week.

A. $451.25

B. $470.25

C. $495.00

D. $498.75

10. An employee is paid biweekly with an hourly rate of $8.00. They agree to work overtime in the 1st week and take compensatory time the next. They worked 46 hours in the 1st week and 35 the next. Calculate the employee’s biweekly earnings.

A. $648.00

B. $652.00

C. $672.00

D. $688.00

11. An employee drives a qualifying vehicle 18,250 miles during 2017 and has personal miles of 7425. Mark pays for the gas. Calculate the FMV of his personal use of the car.

A. $3,564.00

B. $3,601.13

C. $3,972.38

D. $4,009.50

12. An employee drives an employer provided car, its FMV is 14,000. In 2017 the employee drove 19,000; 5600 personal and 13,400 business miles. Using ALV table calculate the employee’s personal use.

A. $5,762.00

B. $2,716.00

C. $2,408.00

D. $1,208.27

13. An employee’s company provides their employees with group term life insurance at two times annual salary. An employee has an annual salary of $30,000 and was born on 10/14/79. Calculate the taxable GTL income for 2017.

A. $12.00

B. $10.80

C. $1.00

D. $.90

14. XZ company wants to give Terry a net check of $10,000 as a bonus. Using the following tax percentages, calculate the gross wages. FIT 25%, SIT 9%.

A. $15,151.51

B. $16,570.01

C. $17,137.96

D. $17,436.79

15. A manager has requested a net check of $5,000 for one of their staff. The employee’s YTD FICA taxable wages are 124,800. Using the following tax percentages, calculate the gross wages. FIT 25%, SIT 6.25% and FICA.

A. $7,579.20

B. $7,650.52

C. $7,923.93

D. $8,183.31

16. Not used in 2011

A.

B.

C

D.

17. A new hire is relocated 300 miles from their previous job and their new employer reimburses the employee the following: moving $2,500.00, travel $1,200 ($200 meals), selling expenses $8,000.00, pre-move expenses $1,700 ($300 meals) and relocation bonus of $5,000.00. Total reimbursement $18,400.00. What amount is not taxable?

A. $5,400

B. $4,200

C. $3,700

D. $3,500

18. An employee was paid $2,500 for payperiod ending April 15 2017. Their current YTD wages are 25,000.00. He has 10% taken for 401k. Calculate FIT using 25% and FICA using current rates.

A. FIT = 562.50 FICA = 141.25

B. FIT = 562.50 FICA = 191.25

C. FIT = 675.00 FICA = 172.13

D. FIT = 675.00 FICA = 191.25

19. An employee was paid 1,500.00 for the current payperiod. Their YTD wages are 54,343.10 and their current deductions are the following: union dues 15.00, 401k 12%, saving account 150.00 and pretax medical (125 plan) 80.00. Calculate FIT using 25% and FICA taxes using current rates.

A. FIT = 310.00 FICA = 80.23

B. FIT = 310.00 FICA = 108.63

C. FIT = 330.00 FICA = 108.63

D. FIT = 355.00 FICA = 94.86

20. An employee earned 94,800 for 2017. They had 10% deducted for 401k, 3,000 for FSA (125 plan), and 1,200 medical (pretax) and 1,200 for United Way. Calculate YTD SocSec and FIT using 15%.

A. FIT = 14,220.00 SocSec = 5,617.20

B. FIT = 14,220.00 SocSec = 6,930.90

C. FIT = 12,168.00 SocSec = 3,805.20

D. FIT = 12,168.00 SocSec = 5,617.20

21. An employee receives $500 weekly from a third party insurer for sick pay. The employer contributed $37,500 and the employees contributed $12,500. What amount is included as taxable income?

A. $0.00

B. $125.00

C. $375.00

D. $500.00

22. An employee receives $400 per week (Sun-Sat paid on Friday) in sick pay from a third party insurer. The insurer receives form W-4S asking that $60 per week be withheld for FIT. The employee returned to work on Thursday after being out for 6 full weeks. What amount is the employee entitled to for sick pay and what amount is withheld for FIT?

A. SP = 400.00 FIT = 60.00

B. SP = 240.00 FIT = 60.00

C. SP = 240.00 FIT = 36.00

D. SP = 160.00 FIT = 24.00

23. An employee receives $1,500 per month for 9 months in disability payments from a third party insurer. The employees pays 25% of the premiums in after tax payroll deductions and his employer pays the rest. Calculate the amount subject to FIT and FICA.

A. FIT = 10,125.00 FICA = 6,750.00

B. FIT = 10,125.00 FICA = 10,125.00

C. FIT = 13,500.00 FICA = 9,000.00

D. FIT = 13,500.00 FICA = 13,500.00

24. An employee terminates employment with their employer. They elects to have their 401k balance ($35,000) paid directly to them. How much will they receive?

A. $24,150

B. $25,200

C. $28,000

D. $35,000

25. Nonqualified stock options. An employee has 200 shares of stock purchase at 5.50 per share. They sell all of his shares at a FMV of 8.25. Calculate the total taxable wages.

A. $1,650.00

B. $1,100.00

C. $550.00

D. $0.00

26. An employee’s normal salary is $700 per pay period. In the current pay period the employee has $120 added for imputed income for personal use of a company car. Calculate their net pay using 25% FIT and 6% SIT.

A. $503.07

B. $399.47

C. $383.07

D. $293.07

27. An employee is reimbursed for substantiated business mileage of 200 miles for the month of May, at a rate of .565 cents per mile. Calculate the taxable amount.

A. 0

B. 3.00

C. 6.00

D. 68.00

28. A tipped employee earned $115.00 from their employer and reported $310 as cash tips. Calculate FIT using 15% on regular wages and 25% on tip income, also calculate FICA. What amount will be withheld from her check for FIT and FICA?

A. FIT = 94.75 FICA = 32.51

B. FIT = 94.75 FICA = 26.35

C. FIT = 90.99 FICA = 24.01

D. FIT = 82.49 FICA = 32.51

29. A semiweekly depositor withheld FIT of $26,325.00, FICA of $12,577.62, SIT 11,773.10 and had FUTA wages of $164,413.30 for the current payroll. No employees have maxed out for FUTA taxable wages. What is the federal deposit amount?

A. $56,676.80

B. $48,191.97

C. $51,480.24

D. $35,614.35

30. A company’s gross payroll was $41,516.28 and had a federal income tax withholding liability of $3,710.21, FICA tax withheld $3,176.00, state income tax withheld is $1,211.96. What is the company’s total federal tax deposit?

A. $ 6,886.21

B. $ 8,098.17

C. $10,062.21

D. $11,274.17

31. An employee earns 6.75 per hour for a 40 hour week. On the last weekly payroll this employee worked 49 hours. Using 25% for FIT and 6% for SIT calculate their disposable earnings.

A. 361.13

B. 237.97

C. 228.35

D. 154.50

32. An employee’s disposable earnings for the week are $300.00. His employer receives a garnishment order requiring $240 be withheld. The amount that can be deducted is the lesser of what?

A. $75 or $82.50

B. $75 or $103.50

C. $75 or $145.50

D. $75 or $154.50

33. An employee’s disposable earnings for a biweekly pay period are $1,100.00. Out of this amount a $250 child support deduction is taken. His employer receives a garnishment order for $350.00. What amount can be withheld?

A. $0

B. $25

C. $275

D. $350

34. An employee works in a state that has no SIT. The employee receives a $3,000 bonus. Using the supplemental tax rate, calculate the employee’s net pay.

A. $3,000.00

B. $2,080.50

C. $2,020.50

D. $1,960.50

35. An employee who works on a holiday receives a two times their hourly rate. The employee’s annual salary is $35,000.00 based on working 37.50 hours per week. During the current pay period the employee worked 6 hours on the holiday. Calculate the additional pay due to the employee.

A. $107.70

B. $125.65

C. $170.53

D. $215.40

36. A nonexempt hospital employee has agreed to work on a 14 day work period, at a regular rate of $10 per hour. The employee worked 4 days at 9 hours each and 5 days at 10 hours each during the period. Calculate the gross pay for the period.

A. $950

B. $930

C. $890

D. $860

37. A nonexempt hospital employee has agreed to work on a 14 day work period, at a regular rate of $11 per hour. The employee worked 2 days at 9 hours each, 4 days at 8 hours each and 5 days at 7 hours each during the period. Calculate the gross pay for the period.

A. $946.00

B. $962.50

C. $990.00

D. $1017.50

38. An employee worked three 9 hour days at $9 per hour and two 10 hour days at $11.50 per hour during the current weekly pay period. Calculate the total earnings for this pay period.

A. $473.00

B. $508.21

C. $510.50

D. $599.00

39. A nonexempt employee is paid $1500 per month based on working 35 hours per week. During the current pay period they worked 43 hours. Calculate the total earnings for the week.

A. $469.78

B. $454.94

C. $440.11

D. $384.93

40. An employer reimburses an employee $1300 for a pre move expenses (350 was for meals). What amount is excluded from John’s taxable wages.

A. $1300

B. $950

C. $350

D. 0

41. Using the Wage Bracket Method, calculate the FITW for an employee earning 780 biweekly claiming married with one allowances. Use table on answer sheet

A. 46.00

B. 44.00

C. 30.00

D. 28.00

42. Using the Percentage Method calculate the FITW for an employee earning 2200 biweekly claiming single with three allowances.

A. $ 46.15

B. $201.05

C. $238.30

D. $247.20

FMV of GTL Insurance Use for Question 12

per $1,000 of excess benefit per month

Under age 25 $.05

Age 25 - 29 $.06

Age 30 – 34 .08

Age 35 – 39 .09

Age 40 – 44 .10

Age 45 – 49 .15

IRS ANNUAL LEASE VALUE TABLE Use for Question 13

Automobile FMV ALV

12,000 - 12,999 3,600

13,000 - 13,999 3,850

14,000 - 14,999 4,100

15,000 - 15,999 4,350

16,000 - 16,999 4,600