Solutions Chapt 7

Solutions Chapt 7 - Payroll Concepts and Procedures-...

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ANSWERS TO DISCUSSION QUESTIONS 1. The Fair Labor Standards Act regulates minimum hourly wage as well as maximum number of hours a worker works at regular rate. The law has many amendments regarding minimum wage, child labor restrictions, equal pay, etc. 2. Overtime is the number of overtime hours times time and a half the regular rate. 3. Information on the W-4 form is used to find the amount of FIT withheld from one paycheck, based on a person’s income, marital status, and number of allowances claimed. 4. True. 5. Businesses should prepare payroll registers prior to paying employees in order to check and verify that the deductions are accurate and that the employees’ take-home pay is correct. Payroll laws require that employers maintain payroll registers for record-keeping purposes. 6. False. 7. FICA is a tax used to fund, for example, (1) monthly retirement benefits of those over 62; (2) medical benefits after age 65; and (3) benefits for disabled workers. 8. For our purpose Social Security is 6.2% on $87,000; Medicare (1.45%) has no wage base limit. Check with the IRS for latest rates. 9. Disagree; the current rate is 6.2% for Social Security and 1.45% for Medicare and the employer matches the employee’s contribution. 10.
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This homework help was uploaded on 02/20/2008 for the course ACCT 201 taught by Professor Peterv during the Spring '08 term at Bellevue College.

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Solutions Chapt 7 - Payroll Concepts and Procedures-...

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