Payroll Quiz

Salary is defined as:

• A fixed sum of money divided among equal pay periods

• Total amount earned by all employees for a payroll period

• Number of days of weeks of work covered by an employee's paycheck

• Amount paid to an employee for every hour worked

Withholding allowance refers to:

• A deductions from total earning for each person legally supported by taxpayer and employer

• Total amount earned by all employees for a payroll period

• Taxes based on payroll of a business (required by law)

• A fixed sum of money divided among equal pay periods

Net pay is:

• Individual earnings after taxes, garnishments and contributions

• An individual's income before taxes and adjustments

Payroll Register is best described as:

• Form that shows deduction of taxes

• An accounting form that summarises earnings, deductions and net pay of all employees

• Record of commission an employee earns

What form must be provided yearly by your employer to each employee showing the total salary earned and the taxes withheld?

• W6

• W4

• W2

• W3

Check

• Depositing payroll checks directly into employee's checking or savings account

• Paper check issued to employer at the end of the pay period

• Cash

• Computerised cash payments system that transfers funds without the use of checks, currency or paper documents

What form is used to help determine how much tax will be withheld from your taxes? This form needs to be provided by your employer and you need to update if any changes, for example if you get married or have a child.

• W4

• W2

• W5

• W1

The total earnings, marital status and number of withholding allowances claimed by an employee determines the federal income tax amount to be withheld.

• True

• False

Gross pay is:

• Individual earnings after taxes, garnishments and contributions

• An individual's income before taxes and adjustments

Payroll taxes

• Total amount earned by all employees for a payroll period

• A deductions from total earning for each person legally supported by taxpayer and employer

• A fixed sum of money divided among equal pay periods

• Taxes based on payroll of a business (required by law)