11. The following are examples of employee-related items on a paystub, except:

  • Pay Period
  • Gross Pay
  • FUTA
  • Deductions

12. The following are items that should be included in a payroll policy, except:

  • How employees will be paid
  • Where payroll will be submitted
  • What deductions and benefits will impact pay.
  • When employees will be paid

Bookkeeping for Payroll Practice Quiz

13. An employee's paycheck will be: Gross Wages Earned - Deductions = Net pay. This will be the amount recorded for wages payable.

  • True
  • False

14. Which of the following is not true of a guaranteed payment to a partner in a partnership business?

  • There are no withholdings from the payment.
  • They are made regardless of how the business is doing.
  • They are considered employee wages.
  • They must be reasonably compensated.

15. Payroll reports are for internal use only.

  • True
  • False

Payroll, Obligations, and Loans Assessment

16. True or False: Net pay is the result of total wages earned minus SUTA (state unemployment tax).

  • False
  • True

17. All of the following are examples of employee deductions when calculating net pay except:

  • FUTA
  • FICA
  • Health Insurance
  • Garnishments

18. Jose is expanding his painting business and wants to hire additional contractors to help out. He knows these employees are not actually considered employees but are non-employees. As non-employees, Jose knows the following are true except:

  • He will have to withhold FICA taxes and submit those with regular employee withholdings
  • He will not have to pay overtime as time and a half, but will pay the regular rate regardless of hours
  • He will use a form W-9 for hiring instead of a W4.
  • He will expect an invoice from his contractors for hours worked and pay owed

Shuffle Q/A 2

19. Aruna is a partner in her sister Yasmine’s company, ‘Simply Saffron,’ a traditional Indian cuisine restaurant known for its open tandoor kitchen and Vindaloo. Aruna and Yasmine have decided to make sure they are equally invested and share the day-to-day running of the restaurant. They have also decided not to pay themselves by guaranteed payments, but will instead use a different option. Which of the following is the other option available to them as ownership partners?

  • They can’t pay themselves as business owners unless the business makes profits.
  • They can use an owner’s draw as needed, but cannot draw more than their initial investment until the end of the year profits are known.
  • Pay themselves a salary, that way it’s a predictable amount and can be accounted for under employee wages.
  • Pay themselves hourly wages instead, making sure they don’t have any overtime.

20. For Simply Saffron, food sales are subject to one sales tax rate, alcohol a different sales tax rate, and their branded merchandise a third sales tax rate. In addition to confirming rates and categories with their accountant, which QuickBooks Online tool can they use to accurately track their sales tax liability?

  • Sales Tax Center
  • Sales Tax Invoice
  • Chart of Accounts
  • Payroll Tax Center

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