Answers26.27 TCEC FINANCIAL LITGross Pay vs. Net Pay

Gross Pay vs. Net Pay Answers

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21
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Which of the following statements is always true?

A
Workers being paid on commission make less money than if they are salaried.
B
Workers being paid on commission have a salary that varies based on their performance.
C
Workers being paid on commission are stressed over the amount of earnings they will have.
D
Workers being paid on commission increase the accounting costs of the employer.
22
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Which of the following would affect an employee’s net pay?

A
Opting out of their employer’s dental insurance plan and putting the money saved into their employer’s health insurance plan
B
Claiming a different number of dependents and thereby reducing their income tax withholdings
C
Getting a raise and putting the extra money into a 401(k) plan
D
Receiving a bonus in the form of extra vacation days
23

Chloe receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 23% of federal tax, determine if Chloe's net pay is correct. EarningsDeductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH.NET PAY9/10$856.00 $80.00 $53.07 $12.41 $18.40$692.12Choose the true statement below.

A
The net pay is correct.
B
The Social Security tax is not correct.
C
The Medicare tax is not correct.
D
The state tax is not correct.
24

Chuck has a gross pay of $815.70. By how much will Chuck’s gross pay be reduced if he has the following items withheld?federal tax of $56Social Security tax that is 6.2% of his gross payMedicare tax that is 1.45% of his gross paystate tax that is 19% of his federal tax

A
$73.04
B
$129.04
C
$235.51
D
$273.38
25

Use the tax table to help answer the following question. Luce is single and making $763 biweekly. She claims no federal withholding allowances. If the state tax is 19% of the federal tax, how much in state tax does Luce contribute?

Question illustration
A
$12.92
B
$15.13
C
$15.77
D
$16.34
26

Casey has a job doing valet parking. Casey makes an hourly rate of $4.55 per hour plus tips. Last week Casey worked 26 hours and made $898.55. How much in tips did Casey earn last week?

A
$34.56
B
$118.30
C
$157.25
D
$780.25
27

Use the tax table below to answer the following question. Consider cases where the number of withholding allowances is less than 6. Which will cause the amount of federal income tax withheld to increase?

Question illustration
A
Gross pay stays the same and withholding allowances increase.
B
Gross pay increases by more than $20 and withholding allowances stay the same.
C
Gross pay increases by more than $20 and withholding allowances increase.
D
Gross pay decreases by more than $20 and wit
28

The total amount of deductions from an employee’s gross pay is $83.20. If the gross pay is $378.18, what percent of their gross pay is being withheld?

A
21%
B
22%
C
23%
D
24%
29

Use the tax table below to answer the following question. Consider cases where the number of withholding allowances is less than 6. Which will cause the amount of federal income tax withheld to increase?

Question illustration
A
Gross pay stays the same and withholding allowances increase.
B
Gross pay increases by more than $20 and withholding allowances stay the same.
C
Gross pay increases by more than $20 and withholding allowances increase.
D
Gross pay decreases by more than $20 and withholding allowances stay the same.
30

Choose the method of pay that would result in the most earnings for one month on sales of $60,000.

A
Straight commission of 6% on all sales.
B
Monthly salary of $1,500 plus 3% commission on all sales.
C
Graduated commission of 4% on the first $50,000 in sales and 10% on anything over that.
D
Graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.
31

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld?federal tax of $92Social Security tax that is 6.2% of his gross payMedicare tax that is 1.45% of his gross paystate tax that is 22% of his federal tax

A
$82.66
B
$129.13
C
$164.01
D
$174.66
32

Marilyn has a biweekly gross pay of $810 and claims 3 federal withholding allowances. Marilyn has all of the following deductions from her gross pay: federal tax from the following table Social Security tax that is 6.2% of her gross pay Medicare tax that is 1.45% of her gross pay state tax that is 21% of her federal tax Determine how Marilyn’s net pay will be affected if she increases her federal withholding allowances from 3 to 4.

Question illustration
A
Her net pay will increase by $15.00.
B
Her net pay will decrease by $15.00.
C
Her net pay will increase by $18.15.
D
Her net pay will decrease by $18.15.
33

Erica sells magazine subscriptions and makes a flat rate of $5.35 for each subscription she sells. If Erica made $42.80 on Monday, $64.20 on Tuesday and $74.90 on Wednesday, how many subscriptions did she sell in the three days?

A
32
B
33
C
34
D
35
34

The following federal tax table is for biweekly earnings of a single person. A single person earns a gross biweekly salary of $840 and claims 5 exemptions. How will federal taxes affect his net pay?

Question illustration
A
Federal taxes will not affect the net pay.
B
Net pay will increase $11 from the gross pay.
C
Net pay will decrease $11 from the gross pay.
D
Net pay will decrease $13 from the gross pay.
35

A restaurant worker earns a set amount per hour from their employer. They also receive tips from customers. Their earnings most closely resemble those of which of the following?

A
An employee working on straight commission
B
An employee working on commission plus salary
C
An employee working on a piece-rate basis
D
An employee working on a fixed salary
36

Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 19% of federal tax, determine if Juanita's net pay is correct. EarningsDeductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH.NET PAY11/17$1,020.00 $107.00 $63.24 $14.79 $20.33$814.64Choose the true statement below.

A
The net pay is correct.
B
The Social Security tax is not correct.
C
The Medicare tax is not correct.
D
The state tax is not correct.
37

A statement of an employee's biweekly earnings is given below. EarningsDeductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH.NET PAY9/10$_____ $98.00 $52.88 $12.37 $22.54$667.17What is the employee's gross pay?

A
$818.05
B
$830.42
C
$840.59
D
$852.96
38

The table below shows the earnings, in thousands of dollars, for three different commissioned employees. $2,000 + 3% on all sales7% on all sales5% on the first $40,000 + 8% on anything over $40,000December4.45.65.2January3.53.853.6February4.74.94.4Who had the largest dollar amount in sales for the month of January?

A
The salary plus commission employee.
B
The straight commission employee.
C
The graduated commission employee.
D
They each had the same dollar amount in sales.
39

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld?federal tax of $92Social Security tax that is 6.2% of his gross payMedicare tax that is 1.45% of his gross paystate tax that is 22% of his federal tax

A
$82.66
B
$129.13
C
$164.01
D
$174.66
40

Sally earns graduated commission on her sales each month. She earns 6% commission on the first $45,000 in sales and 8% on anything over that. If Sally had $51,000 in sales this month, how much commission did she earn?

A
$4,080
B
$3,180
C
$3,060
D
$2,820

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