ACC 105 Chapter 5 Smartbook: Employee Net Pay & Pa
ACC 105 Chapter 5 Smartbook: Employee Net Pay & Pa
Exam (elaborations)
ACC 105 Chapter 5 Smartbook: Employee Net Pay & Pay Methods || Questions and 100% Accurate Answers.
5 views 0 purchase
Course
ACC 105 Chapter 5 Smartbook: Employee Net Pay & Pa
Institution
ACC 105 Chapter 5 Smartbook: Employee Net Pay & Pa
Once the employer has computed the employee's gross pay, the next step is: correct answers to deducted mandatory, voluntary, and mandated amounts
After computing employee gross pay, the next step is to: correct answers subtract pre-tax deductions
Daniel is a new employee looking at contributi...
ACC 105 Chapter 5 Smartbook: Employee Net Pay & Pay
Methods || Questions and 100% Accurate Answers.
Once the employer has computed the employee's gross pay, the next step is: correct answers to
deducted mandatory, voluntary, and mandated amounts
After computing employee gross pay, the next step is to: correct answers subtract pre-tax
deductions
Daniel is a new employee looking at contributing to a 401(k) offered through the company. How
will his contributions affect his tax liability? correct answers -No change to FICA tax liability
-Lower federal income tax
The purpose for using grossed-up pay is to: correct answers -Satisfy tax liabilities
-Achieve a predetermined net pay
The employer's role in federal income taxes is: correct answers -depositor
-reporter
-collector
Mandatory tax deductions for all employees include the following: correct answers -Medicare
taxes
-Federal income taxes
-Social Security taxes
Put the list in the correct processing order: correct answers 1. Determine Gross Pay
2. Determine Pre-Tax Deductions
3. Determine Federal Withholding Taxes
4. Determine Post-Tax Deductions
George had gross wages of $1,000, 401(k) deduction equal to 15% of gross wages and health
insurance of $50. George's taxable income is $_. correct answers $800
(1,000 x .15 = 150
150 + 50 = 200
1,000 - 200 = 800)
An employee earns $4,000 per week and contributes $150 to their 401(k) plan and $75 to United
Way, a charity. What is the employee's FICA taxes for the period? correct answers $306
($4,000 x (.062 + .0145) = $306
Social Security Tax Rate = 6.2
Medicare Tax Rate = 1.45)
During the first step of determining grossed-up pay, what computation must occur? correct
answers Compute the total percentage of mandatory taxes
, The employee completes which form to identify the withholding information for federal income
taxes? correct answers W-4
Which of the following are more often employer-only taxes? correct answers -Federal
unemployment taxes
-State unemployment taxes
True or False: The new Form W-4 removes the withholding allowances and focuses on marital
status, annual income, and dependents. correct answers True
True or False: Social Security and Medicare can be higher than federal taxable income because
of retirement contributions. correct answers True
An employee earns $4,000 per week and contributes $150 to their 401(k) plan and $75 to United
Way. What amount of employee's wages are subject to federal income taxes? correct answers
$3,850
($4,000 - 150 = $3,850)
In 2020, Publication _ was issued for the sole purpose of income tax calculations. correct
answers 15-T
True or False: The wage-bracket method is useful for manual payroll preparation because the
process of federal tax withholding is an absolute amount that will match the year-end tax forms.
correct answers False
What item(s) was/were new on the Form 2020 W-4? correct answers Dependents under 17
When would an employee want to have additional taxes withheld by their employer? correct
answers -When the employee has more than one job.
-When the employee has additional income for which no income tax is withheld.
When using the wage-brack method in Publication 15-t, the payroll clerk identifies the: correct
answers -taxable income
-marital status
Manual calculations of payroll taxes using the wage-bracket method would: correct answers
estimate the amount for year end
Under the percentage method, place the items in calculation order: correct answers 1. Gross Pay
2. Federal Taxable Wages
3. Withholding Allowance Deduction
4. Tiered Tax Rate
Which of the following are types of taxes employers would match? correct answers -Social
Security taxes
-Medicare taxes
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
