Chapter 7 Test

Question 1

Law the majority of employers must follow that contains rules stating the minimum hourly rate of pay and the maximum number of hours a worker will work before being paid overtime

Answer 1

Fair Labor Standards Act

Question 2

Test applied to determine whether an employer must follow the files of the FLSA

Answer 2

Interstate commerce

Question 3

Length of time used by an employer to calculate the amount of an employee’s earning

Answer 3

Payroll period

Question 4

all earnings before any deductions

Answer 4

gross earnings

Question 5

Seven-day period used to determine overtime hours for employees

Answer 5

Workweek

Question 6

Form filled out by employees and used by employers to supply needed information about the number of allowances claimed, marital status, and so forth

Answer 6

Form W-4

Question 7

Certain dollar amounts of a person’s income tax that will be considered nontaxable for income tax withholding purposes

Answer 7

Allowances

Question 8

Amount of federal income tax withheld by the employer from the employee’s gross pay

Answer 8

FIT withholding

Question 9

One of various charts in IRS Circular E that provide information about deductions for federal income tax based on earnings and data supplied on the W-4 form

Answer 9

Wage bracket table

Question 10

IRS tax publication of payroll procedures, including tax tables

Answer 10

Circular E

Question 11

Amount of state income tax withheld by the employer from the employee’s gross pay

Answer 11

SIT withholding

Question 12

Law that taxes both the employer and employee up to a certain maximum rate and wage base for OASDI tax purposes

Answer 12

FICA

Question 13

Shows amount of earnings subject to tax

Answer 13

Taxable earnings

Question 14

Health care insurance for which premiums may be paid through a deduction from an employee’s paycheck

Answer 14

Medical Insurance

Question 15

Gross earnings, less deductions

Answer 15

Net pay

Question 16

Multicolumn form that is used to record payroll data

Answer 16

Payroll register

Question 17

Accounting document that summarizes the total amount of wages paid and the deductions for the calendar year

Answer 17

Individual employee earnings record

Question 18

Tax paid by employers to the federal government. 0.6% up to $7,000

Answer 18

FUTA

Question 19

Tax usually paid only by employers to the state for employee unemployment insurance

Answer 19

SUTA

Question 20

Insurance purchased by most employers to protect their employees against losses due to injury or death while on the job

Answer 20

Workers’ compensation insurance

Question 21

Rate assigned by an insurance company to determine the cost of insurance coverage

Answer 21

Experience or merit rating

Question 22

Cost to employers that includes the total of the employer’s FICA OASDI, FICA Medicare, FUTA, and SUTA taxes

Answer 22

Payroll tax expense