Chap 6 Quiz

Question 1

John works for Heinlein Hillclimbers in Wyoming, where he earns $26,500 annually. He contributes $150 per month to his 401(k), of which his employer matches half of his contribution. Heinlein Hillclimbers contributes $150 per month to his health insurance, $30 per month to his life insurance, and $50 per month to his AD&D policy. He receives a 2% profit-sharing bonus at the end of each year and $5,250 in tuition reimbursement. Heinlein pays employer-only taxes and insurance that comprises an additional 18% of John’s annual salary. What is John’s total annual compensation?

Multiple Choice

• $39,675.25
• $39,633.25
• $40,710.00
• $26,500.00

Answer 1

$40,710.00

Question 2

Which of the following is not an example of an employer’s payroll-related business expense?

Multiple Choice

• Employee compensation and accountability
• Voluntary deduction receipt
• Tax withholding and matching
• Tax deposits and filings

Answer 2

Voluntary deduction receipt

Question 3

________ allows firms to allocate costs accurately among departments.

Multiple Choice

• Labor costing
• Labor distribution
• Benefit analysis
• Compensation analysis

Answer 3

Labor distribution

Question 4

Which of the following documents could contain annual compensation report data?

Check all that apply:

• Employee earnings report
• Vendor invoices
• Employee questionnaires
• Payroll tax reports

Answer 4

• ## Employee earnings report
• Payroll tax reports

Question 5

Trick’s Costumes has 65 employees, who are distributed as follows:

Design	12 employees
Fabrication	30 employees
Purchasing	8 employees
Administration	10 employees
Sales	5 employees

The payroll-related costs for the year are $1,043,050. If Trick’s Costumes does use departmental classification, how much is allocated to the Purchasing department?

• $120,351.92
• $160,469.23
• $128,375.38
• $176,516.15

Answer 5

$128,375.38

$ 1,043,050.00 / 65 = $ 16,046.92 X 8 = $ 128,375.38

Question 6

Maeisha works for Brown Corporation, where she earns $45,000. Her employer contributes 1% of her pay to her pension fund and pays the following monthly amounts for her insurance: health, $300; life, $50; AD&D, $25. She receives $40 per month for her gym membership and receives a $400 bonus at the end of the year. Brown Corporation pays employer-only taxes and insurance that comprises an additional 12% of Maeisha’s annual salary. What is Maeisha’s total annual compensation?

Multiple Choice

• $56,230.00
• $54,451.30
• $54,849.30
• $50,766.80

Answer 6

$56,230.00

Question 7

Employee expenses like benefits and other non-wage compensation may amount to at least another ________ of each employee’s annual pay.

Multiple Choice

• 60%
• 40%
• 70%
• 50%

Answer 7

50%

Question 8

Electronic tax deposits are usually processed through the:

Multiple Choice

• EPS.
• EFTPS.
• AFTPS.
• ESTPF.

Answer 8

EFTPS

Question 9

The payroll tax(es) for which an employer must match the entire amount of the employee’s deduction include ________.

Multiple Choice

• FUTA and SUTA
• Social Security and Medicare taxes. (up to $137,700 and $200,000 in annual compensation, respectively)
• Federal withholding tax
• FICA and Federal withholding tax. (up to $137,700 and $200,000 in annual compensation, respectively, for FICA)

Answer 9

Social Security and Medicare taxes. (up to $137,700 and $200,000 in annual compensation, respectively)