Payroll Accounting Quiz

What is the formula for calculating gross wages?

• Gross Wages = Total Hours Worked * Hourly Rate

• Gross Wages = Total Hours Worked - Hourly Rate

• Gross Wages = Total Hours Worked / Hourly Rate

• Gross Wages = Total Hours Worked + Hourly Rate

What are the types of withholding taxes in payroll accounting?

• federal income tax, state income tax, and FICA taxes

• excise tax

• property tax

• sales tax

What are some examples of employee benefits in payroll accounting?

• overtime pay, stock options, and profit sharing

• company car, gym membership, and tuition reimbursement

• unemployment benefits, sick leave, and dental insurance

• health insurance, retirement plans, paid time off, and bonuses

What are payroll deductions and why are they important?

• Payroll deductions are taxes paid by the employer on behalf of the employee.

• Payroll deductions are amounts of money taken out of an employee's paycheck to cover expenses and fulfill financial obligations.

• Payroll deductions are fees charged by the employer for using company resources.

• Payroll deductions are bonuses given to employees based on their performance.

How is gross wages calculated for an hourly employee?

• Add the number of hours worked to the hourly rate of pay.

• Multiply the number of hours worked by the hourly rate of pay.

• Divide the number of hours worked by the hourly rate of pay.

• Subtract the hourly rate of pay from the number of hours worked.

What is the difference between gross wages and net wages?

• Gross wages are the amount received after deductions, while net wages are the total amount earned before deductions.

• Gross wages are the amount received after taxes, while net wages are the total amount earned before taxes.

• Gross wages are the total amount earned after deductions, while net wages are the amount received before deductions.

• Gross wages are the total amount earned before deductions, while net wages are the amount received after deductions.

What is the purpose of withholding taxes in payroll accounting?

• To ensure accurate payroll calculations.

• To collect income taxes from employees throughout the year.

• To calculate employee benefits.

• To provide additional income for the employees.

What are some common payroll deductions for employees?

• federal income tax, state income tax, Social Security tax, Medicare tax, health insurance premiums, retirement contributions, and garnishments

• sales tax, property tax, unemployment tax

• union dues, parking fees, gym membership

• student loan payments, credit card payments, car loan payments

How are employee benefits typically accounted for in payroll?

• By adding the cost of benefits to the employee's gross pay after calculating taxes and other deductions.

• By deducting the cost of benefits from the employee's net pay after calculating taxes and other deductions.

• By deducting the cost of benefits from the employee's gross pay before calculating taxes and other deductions.

• By not accounting for employee benefits in payroll.

What are some legal requirements for payroll accounting?

• Ignoring minimum wage and overtime laws

• Not providing pay stubs to employees

• Accurately calculating and withholding taxes, maintaining records of employee wages and hours worked, providing pay stubs to employees, and complying with minimum wage and overtime laws.

• Paying employees in cash, without any record keeping