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Topic 14 Review

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

What is the term used to describe the money paid to an employee for each hour of work provided?

a)

Salary

b)

Wage

c)

Commission

d)

Payroll

2.

What is the term used to describe money paid to an employee as a percentage of revenue they helped generate?

a)

Salary

b)

Wage

c)

Commission

d)

Payroll

3.

What term describes a fixed annual amount of money paid to an employee, normally in equal regularly scheduled increments?

a)

Wage

b)

Salary

c)

Commission

d)

Payroll

4.

What is the primary purpose of the Fair Labor Standards Act (FLSA)?

a)

To provide health and safety regulations in the workplace

b)

To enforce minimum wage and overtime pay standards

c)

To compensate employees for workplace injuries

d)

To regulate workplace discrimination

5.

Which act is responsible for providing a comprehensive and exclusive workers' compensation program?

a)

Occupational Safety and Health (OSH) Act

b)

U.S. Department of Labor (DOL)

c)

The Federal Employees' Compensation Act (FECA)

d)

Fair Labor Standards Act (FLSA)

6.

According to the image, what is the minimum overtime pay required by law over an employee's normal wage?

a)

50% more

b)

75% more

c)

Double the normal wage

d)

The same as the normal wage

7.

What is the minimum hourly wage that Company XYZ must pay Sandra, considering the local, state, and federal minimum wage rates provided?

a)

A) $13.00/hour

b)

B) $16.00/hour

c)

C) $7.50/hour

d)

D) The average of all three hourly wages

8.

Which type of salaried worker can receive overtime pay for hours worked over 40 per week?

a)

A) Exempt

b)

B) Non-exempt

c)

C) Wage earners

d)

D) Commission workers

9.

A lump sum payment to an employee based on achieving certain performance-oriented goals is called a/an __________.

a)

wage

b)

salary

c)

bonus

d)

pay period

10.

What is the term used for the earnings an employee receives after all payroll deductions have been subtracted from their gross pay?

a)

Total earnings

b)

Involuntary deductions

c)

Net pay

d)

Gross pay

11.

Which of the following is classified as amounts withheld from an employee's total earnings?

a)

Payroll deductions

b)

Retirement plan contributions

c)

Net pay

d)

Salary increments

12.

Social Security tax is an example of which type of payroll deduction?

a)

Involuntary deductions

b)

Voluntary deductions

c)

Net adjustments

d)

Bonus allocations

13.

What type of deduction are union dues classified as under payroll regulations?

a)

Voluntary payroll deduction

b)

Health insurance plan

c)

Involuntary payroll deduction

d)

Court-mandated garnishment

14.

Which of the following is considered a voluntary payroll deduction?

a)

Medicare tax

b)

Union dues

c)

Health insurance plan

d)

Court-mandated garnishment

15.

What is the nature of the Medicare tax according to payroll deduction rules?

a)

Voluntary contribution

b)

Involuntary payroll deduction

c)

Optional insurance payment

d)

Court-ordered payment

16.

What is a 401(k) retirement plan employee contribution classified as?

a)

Post-tax payroll deduction

b)

Involuntary deduction

c)

Pre-tax payroll deduction

d)

Employee tax

17.

Which of the following is not an example of an involuntary payroll deduction?

a)

Income tax

b)

Social Security tax

c)

Health Insurance

d)

Medicare tax

18.

Which of the following is not considered a voluntary payroll deduction?

a)

Retirement plans

b)

Health insurance

c)

Union dues

d)

Social Security Tax

19.

Which of the following is NOT an example of a pre-tax payroll deduction?

a)

Health insurance premiums

b)

Wage garnishments

c)

401(k) retirement plan contributions

d)

All of the above

20.

Which of the following is NOT an example of a post-tax payroll deduction?

a)

Roth 401(k) retirement plan contributions

b)

401(k) retirement plan contributions

c)

Union dues

d)

Wage garnishments

21.

What is a 401(k) plan best described as?

a)

A) A tax-deferred retirement plan sponsored by employers

b)

B) A personal savings account

c)

C) A government-provided pension

d)

D) A health insurance plan

22.

Which retirement account allows direct deductions from an employee's paycheck?

a)

A) Individual Retirement Account (IRA)

b)

B) Roth IRA

c)

C) Roth 401(k)

d)

D) Health Care Plan

23.

Which of the following is NOT a form of a qualified retirement plan?

a)

A) Individual Retirement Account (IRA)

b)

B) Roth IRA

c)

C) Roth 401(k)

d)

D) Health Care Plan

24.

What happens if funds are withdrawn from a 401(k) plan prior to the allowed withdrawal age?

a)

They incur a tax, but not a penalty

b)

They incur a penalty, but not a tax

c)

They don’t incur a penalty

d)

They incur a tax and a penalty

25.

What is commonly referred to as a/an when employers perform their regularly scheduled calculations necessary to pay their employees?

a)

Salary run

b)

Wage run

c)

Payroll run

d)

Total Points

26.

Which of the following is NOT a part of the payroll process?

a)

Calculate employee earnings

b)

Onboard new employees

c)

Remit income taxes to the government

d)

Make the proper withholdings

27.

What is the term for a report that summarizes the total earnings, deductions, and net pay for all employees in a single payroll period?

a)

Payroll register

b)

Payroll run

c)

Pay stub

d)

Total Points

28.

What is a payroll register primarily used for?

a)

To record employee attendance

b)

To summarize total earnings, deductions, and net pay for all employees in a payroll period

c)

To track stock inventory

d)

To manage customer transactions

29.

What is the purpose of a voucher check in the context of payroll?

a)

To provide a detailed report of employee performance

b)

To serve as a receipt for customer purchases

c)

To outline an employee's total earnings and deductions with a detachable summary for transaction

d)

To track business expenses only

30.

Which of the following is not typically included in a payroll register?

a)

Employee earnings

b)

Payroll journal entry

c)

Employee deductions

d)

Net pay

31.

What is a pay stub?

a)

A document for tracking work hours only

b)

A detailed invoice for client transactions

c)

A summary of an employee's earnings and deductions for pay periods

d)

A legal contract between employer and employee

32.

A check with a detachable summary of the transaction attached is called:

a)

Blank check

b)

Paycheck

c)

Pay stub

d)

Voucher check

33.

When processing payroll and using the matching principle of accounting, employers must match their payroll expense with the time period _______.

a)

the expense occurred

b)

cash was available in the payroll checking account

c)

revenue was earned

d)

revenue increased

34.

The account called Salaries and Wages is a/an _______.

a)

contra-expense account with a normal debit balance

b)

contra-expense account with a normal credit balance

c)

expense account with a normal debit balance

d)

expense account with a normal credit balance

35.

When journalizing a payroll run, which one isn’t a credit entry?

a)

Health Insurance Premiums Payable

b)

401(k) Contributions Payable

c)

Health Insurance Premium Payable