Accounting Midterm Review

The FICA taxes have two components and they are

• Federal income tax and state income tax

• Social security tax and Medicare tax

• Social security tax and Federal income tax

• Medicare tax and state income tax

The overtime rate is

• 6.2

• 2

• 1.45

• 1.5

To find the federal income tax,

• we use the overtime rate

• we use the federal income tax rate

• we use the tax tables

• we use the FICA tax rates

This is the amount of time over which an employee is paid

• payroll

• pay period

• pay stub

• paycheck

This is a fixed amount of money paid to an employee for each pay period.

• piece rate

• salary

• wage

• commission

This is an amount paid to an employee based on a percentage of the employee’s sales.

• Salary

• wage

• piece rate

• commission

An amount subtracted from gross earnings is a

• withdrawal

• payroll

• salary

• deduction

All of the choices are deductions required by law EXCEPT

• 401k plan

• federal income tax

• medicare

• social security

A withholding allowance reduces the amount of income tax to be withheld

• TRUE

• FALSE

This is an amount of money paid to an employee at a specified rate per hour worked.

• salary

• piece rate

• commission

• wage