Unlock the key to mastering business management with our comprehensive quiz guide! This expertly crafted resource covers essential payroll and tax concepts, including employee earnings records, FICA and SUTA taxes, and self-employment income. Each question is paired with precise definitions and det...
ACCOUNTING
Questions & Answers
Level: ACC-117 Introduction to Accounting
Edition: 2024/2025
Compiled By: Simon Mwangi
, Accounting 2 of 9 pages
Circle the letter of the Definition that corresponds to the displayed Term.
1
Question: employee earnings record
a) a government act that requires self-employed individuals to pay tax on net self-employment income
b) compensation for managerial or administrative services
c) a separate record of each employee's earnings
d) compensation for skilled or unskilled labor
Correct Answer: c) a separate record of each employee's earnings
Explanation: An employee earnings record is a separate record that tracks each employee's earnings.
2
Question: Electronic Federal Tax Payment System (EFTPS)
a) a separate record of each employee's earnings
b) an electronic funds transfer system for making federal tax deposits
c) a government act that requires self-employed individuals to pay tax on net self-employment income
d) an employees total earnings
Correct Answer: b) an electronic funds transfer system for making federal tax deposits
Explanation: The Electronic Federal Tax Payment System (EFTPS) is used for electronically
transferring funds to pay federal taxes.
3
Question: experience-rating system
a) a system to encourage employers to provide regular employment to workers
b) a payroll method in which the employee does not handle the paycheck; payment is made by the
employer directly to the employee's bank account using EFT
c) someone who performs a service for a fee and does not work under the control and direction of the
company paying for the service
d) taxes levied on employers at the same roles and on the same earnings bases as the employee FICA
taxes
Correct Answer: d) taxes levied on employers at the same roles and on the same earnings bases as the
employee FICA taxes
Explanation: The experience-rating system involves taxes on employers that are similar to employee
FICA taxes.
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