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Chapter: 3 -Problem: 5 >> Kirk McAllister earns $15.30 per hour at Jolly Creamery. Compute his pay under both the hundredth-hour and quarter-hour systems. The company is considering switching from a quarter-hour method to a hundredth-hour method. Kirk submitted the following time card (Hint: convert times to a 24-hour clock for ease of computation):Kirk’s total pay in the hundredth-hour system: __________ Kirk’s total pay
Answer Preview: In Out In 8:10 Out Total hours with Hundredth-hour 11:54 12:47 16:52 7 82 9:02 12:23 1…

, Chapter: 5 -Problem: 8 >> Jeremiah Seafort of All Grains Bakery is considering offering additional payroll disbursal methods for his employees. Which of the following would be the safest for employees without a bank account?a. Checkb. Paycardc. Cashd. Direct deposit
Answer Preview: b.…

, Chapter: 4 -Problem: 2 >> Orlando Collier is employed as a concierge at Strawberry Lodge, an upscale resort in the Adirondack Mountains. He asks you, the payroll accountant, which deductions from his pay are considered voluntary fringe benefits. Where would you tell him to look on his pay stub?
Answer Preview: In the deductions area of his pa…

, Chapter: 4 -Problem: 8 >> Eric Rubin is the payroll accountant of Central Communications. He is researching retirement plan options for his employer. Central Communications has 135 employees and is a for-profit company. Which of the following plans should he consider?a. IRAb. 457c. 403(b)d. 401(k)
Answer Preview: d…

, Chapter: 3 -Problem: 1 >> Lynne Everton is a minimum wage worker in Oklahoma. She is contemplating moving to a state with a more favorable minimum wage. Which of the following states should she choose?TexasArkansasLouisianaNew Mexico
Answer Preview: 2. Ark…

, Chapter: 2 -Problem: 2 >> Reuben Walker is a part-time worker for Senior Solvers who uses company equipment in the performance of his job duties. He asks the payroll supervisor, Gina Turner, to grant him independent contractor status. What should Gina tell him?
Answer Preview: Payroll system security, Mainte…

, Chapter: 3 -Problem: 10 >> Jeremiah Watson is a salaried, exempt employee with Mega department Stores. He is single with one dependent under 17 and earns $35,500 per year. Complete the payroll register for the biweekly pay period ending March 8, 2021, with a pay date of March 12, 2021. Transcribed Image Text: P/R End Date: Ch
Answer Preview: P/R End Date Check Date Name Jeremiah Watson Total 3/8/2021 3/…

, Chapter: 4 -Problem: 5 >> Mike Mallin is an employee of All-Adventure Tours. All-Adventure Tours offers tuition reimbursement as a fringe benefit. What is the maximum amount that may be excluded from his taxes as a fringe benefit?a. $4,000 b. $4,750 c. $5,000d. $5,250
Answer Preview: d…

, Chapter: 4 -Problem: 6 >> Rodney Atwater is a sales representative for American Silk Mills. Because he visits customer sites, he has a company car. He drove 25,500 miles during 2021, of which he reported 15 percent was personal miles. Using the cents-per-mile rule, what is the valuation of this benefit for 2021?
Answer Preview: $ 2,142 00 = …

, Chapter: 5 -Problem: 2 >> Chloe Ayers has received a court order for garnishment for her student loan payments. What must be considered in computing the garnishment?a. Year-to-date payb. Hourly wagec. Disposable incomed. Pay frequency
Answer Preview: b. Hourly …

, Chapter: 6 -Problem: 3 >> Davis Reyes is the accountant for Heads Up Hat Corporation. As he prepares the payroll for the semimonthly pay period ending December 15, he notices that some of the year-to-date executives’ salaries have exceeded $200,000. What payroll tax responsibilities does Heads Up Hat Corporation have, especially regarding FICA taxes?a. Social Security tax must be deducted from the executives’ pay for those
Answer Preview: a. Social security tax must be deducted from the executives' pay for …

, Chapter: 4 -Problem: 9 >> Ari Friedman is an employee at Ruby Investments, with an annual salary of $92,500, paid biweekly. Ari has the following fringe and voluntary benefits:Medical insurance: $400 per month401(k): 3 percent of gross payFlexible spending arrangement: $2,550 annuallyCharitable contribution: $65 per pay periodWhat is the total amount Ari contributes to fringe benefits and voluntary deductions annually?
Answer Preview: $11,815 calculated as: Medical insurance: …

, Chapter: 2 -Problem: 3 >> Sara Northman is a member of the Algonquin Indian Nation and is a new employee at Predeo Game Designs. During the process of completing her I-9, she claims that the only way to prove her identity is the Algonquin Indian Nation official birth certificate. Is this document sufficient to prove employment authorization for the purposes of the I-9? Why or why not?
Answer Preview: Algonquin Indian National …

, Chapter: 4 -Problem: 4 >> Jordy Richman is employed at Rockstar Music. Jordy is receiving education assistance of $5,750 per year from Rockstar Music to complete a bachelor’s degree from an accredited college. How much of that assistance is taxable?
Answer Preview: $500 = …

, Chapter: 1 -Problem: 7 >> Match the following terms with their definitions:Manual payrolla. A preloaded credit card is used to pay employees.b. The process of gathering information about hours worked for one or more employees.c. A web-based application wherein employees can modify certain payroll-related information.d. Governs accounting for firms with federal government contracts in excess of $2,000.e. A record of the tim
Answer Preview: h. Payroll …

, Chapter: 2 -Problem: 17 >> What two regulations pertain to employee paycard use?
Answer Preview: Regul…

, Chapter: 1 -Problem: 15 >> Match the following terms with their definitions:Time collectiona. A preloaded credit card is used to pay employees.b. The process of gathering information about hours worked for one or more employees.c. A web-based application wherein employees can modify certain payroll-related information.d. Governs accounting for firms with federal government contracts in excess of $2,000.e. A record of the ti
Answer Preview: b. The process of …

, Chapter: 2 -Problem: 2 >> Roland Wexler was terminated for cause from Santel Auto Parts in North Carolina on July 20, 2021. As of the date of his termination, he had worked 22 hours of regular time. Employees at Santel Auto Parts are paid semimonthly on the 15th and last day of the month. Roland would like to know when he will be paid for the accrued hours. What will you tell him?
Answer Preview: North Carolina states that ter…

, Chapter: 4 -Problem: 10 >> By what date must a company declare the value of noncash benefits used in 2021?a. January 1, 2022b. December 31, 2022c. February 1, 2022d. January 31, 2022
Answer Preview: d. J…

, Chapter: 3 -Problem: 7 >> Dan Nicholes is a commission-based employee who is married filing jointly with two other dependents. He is paid $17.25/hour and receives a 7 percent commission on net sales. He does not receive commissions until his net sales exceed $60,000 during a weekly period at KC Medical Marketing. For the week ending June 4, 2021, he worked 48 hours and sold $75,000 of medicinal supplies. Compute his gross
Answer Preview: Name Dan Nicholes Filing Status MJ Dependents 2 Other Hourly Rate No. of or Period Regular Wag…

, Chapter: 3 -Problem: 11 >> Latanya Brown is an employee of Giant Computers, where her job responsibilities include selling computers and software to customers. Latanya is married filing jointly with two dependents under 17. She receives an annual salary of $42,000 and receives a 3 percent commission on all sales. During the semimonthly pay period ending September 30, 2021, Latanya sold $20,000 of computers and software. Com
Answer Preview: P/R End Date Check Date Name Latanya Brown 9/30/2021 10/5/2021 Fi…

, Chapter: 1 -Problem: 5 >> Rubin Schaub is a payroll accountant who works for a private firm. He completed his most recent professional development course in 2005. Which of the following ethical issues has he violated?ConfidentialityObjectivity and independenceProfessional competence and due careIntegrity
Answer Preview: 3. Prof…

, Chapter: 4 -Problem: 11 >> Elijah Hamilton is the payroll accountant at White Box Builders. He is preparing an information package about voluntary and fringe benefits. Using the following list of fringe benefits, classify each benefit as pre-tax or post-tax and as taxable or tax-exempt for federal income taxes.
Answer Preview: Employee Benefits Post -tax Taxable Pre- tax X X Benefit 401(k) Medical …

, Chapter: 1 -Problem: 3 >> Jackson Wyman was dismissed from his employment at Precision Dynamics because of an incident regarding his race. Mr. Wyman sued Precision Dynamics for $150,000 because of the discrimination. Which of the following laws provides for monetary awards during discrimination lawsuits?FLSAADEAADACivil Rights Act of 1991
Answer Preview: 4. Ci…

, Chapter: 3 -Problem: 7 >> Terry McNutt, a single employee with two dependents under the age of 17, is paid $12 per hour and receives a commission on net sales. He does not receive a commission until his net sales exceed $150,000. Once the minimum net sales are reached, he receives a 4 percent commission on his sales at Skidoo Sports. During the week of January 24, he sold $87,000 of ski equipment; however, he had $2,250 of
Answer Preview: Name Terry McNutt Filing Status S Dependents 2 <7 Hourly Rate or Peri…

, Chapter: 4 -Problem: 6 >> Juan Potter is an employee of Convergent Technologies whose job is strictly based in the company’s office. His employer has authorized his use of a company vehicle for commuting purposes, as necessary. Which of the general valuation rules would be appropriate to evaluate the value of this fringe benefit?a. Lease value ruleb. Unsafe conditions rulec. Commuting ruled. Cents-per-mile rule
Answer Preview: a. Lease Val…

, Chapter: 4 -Problem: 11 >> Kerry Palmer is reviewing benefits with you, the payroll accountant for Silly Lemon Films. Classify the following benefits in which she is interested as pre-tax or post-tax deductions and as taxable or tax exempt for federal income tax. Transcribed Image Text: K. Palmer Benefits Benefit Medical insu
Answer Preview: K. Palmer Benefits Benefit Medical Insurance FSA* AFLAC** Graduate School Tuition at $11,000 …

, Chapter: 5 -Problem: 10 >> Margaret Wilson is the new accountant for a start-up company, Peaceful Skunk Builders. The company has cross-country drivers, warehouse personnel, and office staff at the main location. The company is looking at options that allow its employees flexibility with receiving their pay. Margaret has been asked to present the advantages and disadvantages of the various payment methods for senior managem
Answer Preview: Optimal choice for the cross-country drivers would be paycards to ensure tha…

, Chapter: 2 -Problem: 3 >> On June 21, 2021, Dolores Goodman was terminated from her job at Black Diamond Sports in New Hampshire. Black Diamond Sports pays its employees biweekly on Fridays, and the next payday is 7/2/2021. When must she receive her final paycheck?On the next pay dateWithin seven daysImmediately upon dischargeWithin 72 hours
Answer Preview: 4. …

, Chapter: 1 -Problem: 4 >> Gina Harris is a payroll accountant at Sucre Foods. She works remotely from her home office, communicates with colleagues via Zoom, and has a VPN to prevent her computer data from hackers. Which privacy law(s) require her to protect the information on her computer, even from her family members? (Select all that apply.)1. HHS Privacy Act 09-40-0006 2. Common-Law Privacy Act 3. Privacy Act of 1974 4
Answer Preview: 2. Common-…

, Chapter: 4 -Problem: 8 >> Haley Price is an employee at Finesong Jewelry. She earns a salary of $38,850 per year, paid biweekly, and has a credit card garnishment. Assuming that Haley’s disposable income is 85 percent of her gross pay, what is the maximum amount per period that may be deducted for the garnishment?
Answer Preview: Her disposable income per pa…

, Chapter: 6 -Problem: 4 >> Deshawn Booker is a payroll clerk at Elemental Exports. The company receives written notice from the IRS that the company is a monthly schedule depositor. How is the deposit schedule determined?a. The age of the company.b. The owner's choice or remittance frequency.c. The payroll tax liability during the lookback period.d. The total SUTA tax for the previous year.
Answer Preview: c. The payr…

, Chapter: 4 -Problem: 1 >> Ruth Garcia is a children's photographer for Midlands Photography Studios. She would like advice about using an FSA for miscellaneous prescriptions and other medical expenses. What reason(s) would you give her for having an FSA account?a. The monthly amount is deducted on a pre-tax basis. b. The employee’s income that is subject to income tax(es) is reduced. c. The income subject to Social Securit
Answer Preview: a. The monthly amount is deducted on a …

, Chapter: 6 -Problem: 2 >> As of 2021, which of the following accurately represents the full FUTA rate and wage base?a. 0.6 percent, $142,800b. Varies by statec. 6.0 percent, $7,000d. 0.6 percent, $7,000
Answer Preview: c. …

, Chapter: 3 -Problem: 2 >> Bobby Howard is a salaried exempt employee at Coric Industries. He is married filing jointly with two dependents under 17. His contract stipulates a 40-  hour workweek at $47,500 per year. During the week ending November 27, there was a company-paid holiday for one day. Calculate Bobby’s weekly pay. Round period wages to five decimal points.
Answer Preview: Name Bobby Howard Filing Status Dependents MJ 2 <17 $47,500/52 hours= $913 4…

, Chapter: 1 -Problem: 13 >> Match the following terms with their definitions:Auditora. A preloaded credit card is used to pay employees.b. The process of gathering information about hours worked for one or more employees.c. A web-based application wherein employees can modify certain payroll-related information.d. Governs accounting for firms with federal government contracts in excess of $2,000.e. A record of the time worke
Answer Preview: j. A person or …

, Chapter: 4 -Problem: 5 >> John Cotton is an employee at Radiance Senior Living. He received the following benefits from his employer during 2021 on the company's location for company purposes:Personal protective equipment: $50 per monthEmployer-provided cell phone: $50 per monthMeals: $100 per monthWhat amount of these benefits is taxable for 2021?
Answer Preview: None of these may b…

, Chapter: 3 -Problem: 6 >> Gail Schneeweis is a nurse at Central City Hospital. She is paid $32.50 per hour and has a 40-hour standard workweek. During the biweekly pay period from January 11-24, she worked a total of 87 hours. What is her gross pay?
Answer Preview: Gail's regular pay $2,600 = 40 …

, Chapter: 4 -Problem: 9 >> Joy Warren is an employee at Jankoski Cycles. She earns a salary of $37,765 annually, paid semimonthly. She contributes to the following fringe benefits and other deductions:Medical insurance: $220 per pay periodDental insurance: $15 per pay period401(k): 6 percent of gross payAdditional withholding: $125 per monthWhat is the total annual amount of Joy’s fringe benefits and other deductions?
Answer Preview: $ 9,405 90 calculated as: Medical i…

, Chapter: 5 -Problem: 6 >> Scout Freeman is the vice president for marketing at Sun Field Industries. She earns $160,000 annually and is paid on a semimonthly basis. As of November 15, Scout has year-to-date earnings of $140,000. The Social Security wage base is $142,800. What is the maximum amount of her taxable earnings that may be subject to Social Security tax for the November 30 pay period?
Answer Preview: $2,800 $142,800 140,000 = $2…

, Chapter: 3 -Problem: 1 >> Gail Richter worked the following schedule: Monday, 7 hours 42 minutes; Tuesday, 8 hours 23 minutes; Wednesday, 9 hours 28 minutes; Thursday, 8 hours 12 minutes; Friday, 8 hours 6 minutes. The employer pays overtime in accordance with FLSA regulations. Determine Gail’s total time worked according to the (a) quarter-hour method and (b) the hundredth-hour method. Which is the more favorable method f
Answer Preview: Total Regular time time 41 85 40 hours G. Richt…

, Chapter: 2 -Problem: 4 >> Leonard Andrews ended his employment with Atlas Inks on March 20, 2021. When is the earliest that Atlas Inks may destroy his payroll records?March 21, 2022March 21, 2023March 21, 2024March 21, 2025
Answer Preview: 3. …

, Chapter: 4 -Problem: 1 >> Richard Cox is a new employee at Big Tech Computers. He is debating whether he should enroll in a POP with the opportunity for an FSA or an HDHP with an opportunity for an HSA. The POP premium is $550 per month and the annual deductible is $400. For the HDHP, the monthly premium is $175 and the annual deductible is $1,400. Explain the options of each to Richard.
Answer Preview: The advantage of a POP/FSA combination is the deductibles are lower. The major …

, Chapter: 3 -Problem: 3 >> Ashley Woods is a tipped employee in Washington, DC. What is the minimum tipped wage for her location?$2.13/hour$3.25/hour$4.75/hour$5.05/hour
Answer Preview: 4.…

, Chapter: 5 -Problem: 6 >> What is the Social Security wage base for 2021?a. $128,400 b. $132,900 c. $137,700 d. $142,800
Answer Preview: d.…

, Chapter: 2 -Problem: 6 >> Elaine Wheeler needs additional filing space at the end of the year in the company’s office and chooses to use off-site, secured storage. Upon arriving at the storage facility, she discovers that the unit is nearly full and sees several boxes marked for destruction at the end of the calendar year. What are Elaine’s options regarding the destruction of the payroll records marked for destruction?She
Answer Preview: 2. She should make arrangements to pulp or burn the payroll rec…

, Chapter: 1 -Problem: 1 >> Maura Hatton is a payroll accountant with Scottish Traders Inc. One of her colleagues poses a question about the legality of the deduction for Social Security tax from her pay. What should Maura tell her colleague?
Answer Preview: The Social Security Act in 1935 creat…

, Chapter: 6 -Problem: 1 >> Renee Signorini works for New & Old Apparel, which pays employees on a semimonthly basis. Renee's annual salary is $184,000. Calculate the following: Transcribed Image Text: Pay Date October 15 December 31 Prior YTD Earnings Employer Share Employer Social Share Social Security Medicare Taxable Taxab
Answer Preview: Pay date Prior YTD earnings Social Security taxable wages Medicare taxable wages $7,666 …

, Chapter: 4 -Problem: 7 >> Janice Lucas is the president of Miller Custom Coffee Roasters. She drives a 2020 Mercedes E300 with a fair market value of $57,500. The lease value is $14,750. The odometer started at 655 and was reported at 32,855 at the end of the year. The car was available all of 2021. Janice reported that she drove 32,200 miles during 2021, of which 9,800 were for personal reasons. The company pays all her f
Answer Preview: Annual Lease Value: $14,750 Person…

, Chapter: 2 -Problem: 2 >> Michael Hatton is a salaried employee earning $49,850 annually. He receives his payroll twice per month. Which of the following best describes the pay frequency?BiweeklySemimonthlyWeeklyMonthly
Answer Preview: 2.…

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