Test Payroll - HS1

What entries are required concerning accounting for deducting income tax from salaries?

• DR Wages, CR Income Tax Liability

• DR Cash, CR Income Tax Liability

• DR Income Tax Liability, CR Cash

• DR Income Tax Liability, CR Wages

An employee has basic pay of $400 a week. He also receives a productivity bonus of $25 and is due overtime for 5 hours of work. The overtime rate is $15/hour. If income tax deductions are 23% and social security deductions are 5%, what is the employee's net pay for the week (to the nearest $)?

A business has the following year-end information relating to payroll:

Sarah's wages depend on how many units she produces weekly. Which type of gross pay is this?

• Overtime

• Commission

• Bonus

• Piecework

How is income tax deducted on behalf of employees accounted for?

• As an asset

• Aa an expense

• As a liability

• As income

An employee is paid a guaranteed minimum wage of $75 per week. The employee is paid based on piecework at $7 per output unit. If the employee produces more than 6 units weekly, the additional units are paid at and additional $2.50 per unit. In a week, the employee produced 10 units. What is the employee’s gross pay for the week

Which payment methods can be used to pay employees?