Ch.7 Taxes and Payroll

Which term refers to the total amount earned by an employee before any deductions?

• Gross pay
• Net pay
• Deductions
• Overtime

What is the federal law that establishes minimum wage, overtime pay, and other employment standards?

• Fair Labor Standards Act
• Federal Income Tax Withholding
• State Unemployment Tax Act
• Medicare

Which of the following refers to hours worked beyond the standard work hours, often paid at a higher rate?

• Overtime
• Biweekly
• Draw
• Gross pay

What does FICA stand for?

• Federal Insurance Contribution Act
• Federal Income Contribution Agreement
• Federal Insurance Compensation Act
• Federal Income Collection Act

Which form is filled out by employees to indicate their tax withholding preferences?

• W-4
• Fair Labor Standards Act
• Payroll register
• W-2

Which term refers to additional pay given to employees for working under certain conditions or during specific times?

• Differential pay schedule
• Gross pay
• Overrides
• Draw

What is the tax that funds state unemployment agencies?

• Federal Unemployment Tax Act (FUTA)
• State income tax (SIT)
• Federal Insurance Contribution Act (FICA)
• Social Security

Which compensation method pays an employee solely based on sales or performance?

• Straight commission
• Biweekly
• Semimonthly
• Taxable income

What is the amount remaining after all deductions are taken from an employee's gross pay?

• Net pay
• Gross pay
• Deductions
• Medicare

Which U.S. federal program provides benefits to retirees, disabled individuals, and their survivors?

• Social Security
• Medicare
• State Unemployment Tax Act
• Federal Insurance Contribution Act