31) On January 15, Robert Love earned \$4,000 and has the following deductions: FICA-OASDI 6.2%, FICA-Medicare 1.45%; federal income tax of \$200; and state income tax \$40. What is his net pay?

A) \$3,400

B) \$3,454

C) \$4,454

D) \$\$4,000

32) Kathy Addington earns \$72,000 per year. What is her net pay for the month ended January 31, if FICA tax rates are: 6.2% for OASDI and 1.45% for Medicare; federal income tax is 20%; and union dues are \$85 per month?

A) \$4,100

B) \$4,256

C) \$4,326

D) \$4,293

33) Compute net earnings on March 3, when gross (taxable) pay equals \$750. FICA-OASDI tax rates are 6.2%, FICA-Medicare rate is 1.45%, federal income tax \$71.00, and state income tax \$5.00.

A) \$615.00

B) \$610.00

C) \$616.62

D) \$672.12

34) Employers pay the following payroll taxes, except:

A) FICA-OASDI.

B) Federal income tax.

C) Workers’ Compensation.

D) FICA-Medicare.

35) A summary record of each person’s earnings, deductions, and net pay is called a(n):

A) payroll register.

B) W-4.

C) employee individual earnings record.

D) general journal.

36) The amount of federal income tax withheld from an employee during the year is determined by the employee’s:

A) W-4 form.

B) W-2 form.

C) 1040 form.

D) None of these answers are correct.

37) The amount of FICA-OASDI and FICA-Medicare withheld from the employee’s check is determined by the employee’s:

A) take-home pay.

B) net pay.

C) earnings for the period and cumulative earnings.

D) W-4.

38) When calculating the employee’s payroll the clerk forgot about the wage base limits. What impact could this error cause on the employee’s check?

A) FICA-OASDI could be overstated.

B) FUTA could be overstated.

C) SUTA could be overstated.

D) All of these could be correct.

39) Another name for the Fair Labor Standards Act is:

A) Federal Insurance Contribution Act.

B) Federal Wage and Hour Law.

C) Federal Income Tax Act.

D) Federal Hourly Law.

40) Which of the below allowances would have the least amount of taxes withheld for federal income tax purposes?

A) S-1

B) S-0

C) S-3

D) S-2