Payroll Accounting Quiz

7 multiple-choice questions with answers and explanations · 1 easy, 5 medium, 1 hard

Gross pay, overtime, deductions and net pay, the payroll journal entry, and the employer’s own payroll taxes.

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  1. 1Payroll Accounting: Gross Pay vs Net PayAn employee’s NET pay is:easy
  2. 2Payroll: Computing Gross Pay with OvertimeAn employee earns $20 an hour and is paid time-and-a-half for hours worked over 40 in a week. What is gross pay for a 45-hour week?medium
  3. 3Payroll: Computing Net Pay from Gross Pay and DeductionsAn employee has gross pay of $3,000. Deductions are income tax of $450, social security of $230 and a pension contribution of $120. What is net pay?medium
  4. 4Payroll Journal Entry: Recording Salaries and Tax WithheldGross salaries for the month are $5,000. Income tax of $900 is withheld and employees are paid the net $4,100. Which entry records the payroll?medium
  5. 5Payroll: Are Amounts Withheld from Employees an Expense of the Employer?Income tax withheld from employees’ wages is, for the employer:medium
  6. 6Payroll Journal Entry: Employer Payroll TaxesAn employer must pay its own payroll taxes on top of employees’ gross wages. The entry to record these employer taxes is:medium
  7. 7Payroll: The Total Cost of Employees to the EmployerGross wages for the month are $40,000, from which $6,000 of income tax is withheld. The employer also pays payroll taxes of 10% of gross wages and a pension contribution of $2,000. What is the total payroll cost to the employer?hard

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