12.3 payroll management

Question 1

as part of the compensation system, most businesses provide _____ like insurance, vacation time, sick leave, personal time off, retirement plans and education assistance

Answer 1

benefits

Question 2

businesses must prepare and maintain tax records, as well as sent required ____ to the government on time

Answer 2

payments

Question 3

an employee’s payroll records include the amount of ____ pay, withholding and deductions, and net pay for each pay period. a year to date balance for each item is maintained as well.

Answer 3

gross pay

Question 4

calculate the amount of employee withholding for social security (6.2%) and medicare (1.45%) for the following employee then calculate the net pay

Marjorie Elder $865.00

Answer 4

• Social security: $865 x .062 = 53.63
• Medicare: $865 x .0145 = 12.54
• Net pay: 865 - 53.63 - 12.54 = $798.83

Question 5

the financial record of employee compensation, deductions and net pay

Answer 5

payroll

Question 6

employers must withhold ____ from employee wages and salaries as well as make their own required contributions

Answer 6

taxes

Question 7

payroll records can be maintained using paper or _____

Answer 7

electronically/computerized

Question 8

each time payroll is processed the payroll records are ____

Answer 8

updated

Question 9

one of the most important financial duties of a business is maintaining a _____

Answer 9

payroll

Question 10

what is unemployment tax?

Answer 10

• Federal Unemployment Tax (FUTA)
• amount owed is based on total employees wages

Question 11

what is income tax?

Answer 11

• required by federal, state and local governments to be withheld from employees pay
• amount withheld is based on the wages or salary paid and nubmer of employee dependents

Question 12

the financial record of employee compensation, deductions and net pay is known as

• compensation
• payroll
• earnings report
• paycheck

Answer 12

payroll

Question 13

gross pay is _____ taxes and deductions are taken out

Answer 13

BEFORE

Question 14

an actual paycheck only shows _____

Answer 14

net pay amount

Question 15

what do personnel records include?

Answer 15

• personal info
• employment history
• performance evaluations
• compensation records (how much they get paid)
• other info needed by the company

Question 16

maintains info on each employee to be able to calculate the company’s payroll and to make the necessary payments to each employee

Answer 16

payroll system

Question 17

the earnings report is often called ____

Answer 17

pay stub

Question 18

documentation used to process earning payments and record each employee’s pay history

Answer 18

payroll records

Question 19

the electronic transfer of net pay into an emploee’s bank account is known as

• tax withholding
• FICA
• direct deposit
• an automated payroll system

Answer 19

direct deposit

Question 20

most businesses pay every employee on a weekly, bi-weekly or ____ basis

Answer 20

monthly

Question 21

the payroll records for each employee contain all the info needed by the employer in order to ____ the worker

Answer 21

pay

Question 22

a _____ system is a cental location for all information the company maintains on all employees from the time they are hired until well after they no longer work for the business

Answer 22

personnel

Question 23

most info in personnel files is _____

Answer 23

confidential

Question 24

what are the different kinds of payroll taxes

Answer 24

income taxes

social security

medicare

unemployement taxes

Question 25

in the past, paychecks were calculated by hand. today, ____ personnel records systems make the payroll process more efficient and accurate

Answer 25

computerized

Question 26

a business must keep _____ of employee benefits earned and used

Answer 26

records

Question 27

net pay is the amount _____ all taxes and deductions are taken out

Answer 27

AFTER

Question 28

businesses are responsible for making required federal and state tax _____ for each employee

Answer 28

payments

Question 29

Most employees in many businesses ereceive an hourly wage, managers and professional positions receive a weekly or monthly \_\_\_\_\_

Answer 29

salary

Question 30

true or false businesses are responsible for making required federal and state payments for each employee

Answer 30

true

Question 31

true or false payroll records need to be maintained for all full time employees, but ot for part time employees

Answer 31

false needs to be maintained for full time and part time

Question 32

easy to use software is used today to collect employee time and production records each work period. when paychecks need to be prepared, the information on benefits and deductions is determined and each employee's pay is \_\_\_\_\_\_

Answer 32

calculated

Question 33

what is direct deposit

Answer 33

* the employer transfers net pay electronically into the employee's bank account, * employee does not recieve a printed paycheck * employee does receive an earnings report or pay stub

Question 34

each employee's pay ____ is maintained int he payroll records

Answer 34

history

Question 35

what are social security and medicare?

Answer 35

* often referred to as FICA (federal insurance contributions act) * required to be withheld by the government * employees and employers must pay a certain amount

Question 36

the info in maintained in the ____ records is used to process payroll

Answer 36

payroll

Question 37

what info is included in payroll records?

Answer 37

* info on worker's identity - name, address, social security number * salary and wage rate * vacation and sick days info * the tax filing status * deduction info - health insurance payments, retirement plan contributions