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.
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