Payroll

1. A payment scheme where all employees are rewarded equally regardless of their performance is a___.

• Flat rate

• Bonus rate

• Hourly rate

• Minimum wage

Answer explanation

A flat rate payment scheme rewards all employees equally, regardless of individual performance. This contrasts with other payment types like bonus or hourly rates, which can vary based on performance or hours worked.

1. What document itemizes hours worked and pay rates for employees?

• Payroll sheet

• Time card / Time sheet

• Pay slip

• Commission report

Answer explanation

The correct answer is 'Time card / Time sheet' because it specifically records the hours worked and pay rates for employees, making it essential for payroll processing.

What does gross pay include?

• Basic salary minus deductions

• Only basic salary

• Only overtime and bonuses

• All earnings before deductions
  
  

Answer explanation

Gross pay includes all earnings before any deductions, such as basic salary, overtime, and bonuses. Therefore, the correct choice is 'All earnings before deductions'.

What type of pay scheme is based solely on performance or sales?

• Hourly rate

• Commission

• Salary

• Bonus rate

Answer explanation

A commission pay scheme is directly linked to performance or sales, rewarding employees based on the amount they sell or the results they achieve, unlike hourly rates, salaries, or bonuses which are not solely performance-based.

Who is most likely to be paid an hourly rate?

• Teachers

• Sales clerk

• Janitor

• Doctor

Answer explanation

Janitors are typically paid an hourly rate for their work, as their jobs often involve shift-based schedules. In contrast, teachers and doctors usually have salaried positions, while sales clerks may also earn hourly wages.

_______ is a fixed regular payment typically paid monthly or bi-weekly.

Answer explanation

Salary is a fixed regular payment made to employees, typically on a monthly or bi-weekly basis, distinguishing it from hourly wages which vary based on hours worked.

_______ refers to payment to an employee who does work that needs physical skills and strength.

Answer explanation

Wages refer to payment for work that requires physical skills and strength, making it the correct choice for the blank in the question.

Gross pay is the total earnings before ______ and deductions are made.

Answer explanation

Gross pay is the total earnings before withholdings and deductions are made. 'Withholdings' refers to the amounts taken out for taxes and other purposes, making it the correct choice to complete the statement.

The record of employees salaries and wages for all employees, for a given pay period is_______.

Answer explanation

The record of employees' salaries and wages for a given pay period is known as Payroll. It encompasses all financial details related to employee compensation during that specific time frame.

How does a commission-based scheme work? Provide an example?

Answer explanation

A commission-based scheme compensates individuals based on sales they generate. For example, a real estate agent earns a percentage of the sale price of properties they sell, incentivizing them to close more deals.