2012 Payroll Accounting Chapter 4 Test Key

2012 | e | d | i | t | i | o | n | |

PAYROLL |

accounting |

Bieg/Toland | |

| TEST 4 | |

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Student | INSTRUCTOR’S COPY | |

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Chapter 4 | | Date | | |

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SCORING RECORD | |

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Section | Total Points | Deductions | Score | |

A | 20 | | | |

B | 50 | | | |

C | 30 | | | |

Total | 100 | | | |

Section A—DIRECTIONS: Complete each of the following sentences by writing in the Answers column the letter of the word or words that correctly completes each statement. (2 points for each correct answer) |

| | | For Answers Scoring |

1. | | Which of the following fringe benefits is taxable? (A) membership in a country club, (B) use of on- | | | | | |

| | premise athletic facility, (C) job-placement assistance, (D) qualified employee discounts, (E) re- | | | | | |

| | duced tuition for education. | | A | | 1. | |

2. | | All of the following persons are classified as employees under the federal income tax withholding | | | | | |

| | law with the exception of (A) a first-line supervisor, (B) the president of a corporation, (C) a partner, | | | | | |

| | (D) an elected official in the state government, (E) an officer of the federal government. | | C | | 2. | |

3. | | If an employee files an amended W-4, the employer must make the W-4 effective no later than the | | | | | |

| | (A) next payday, (B) start of the first payroll period ending on or after the 30th day from the W-4 | | | | | |

| | receipt date, (C) 10th day from the W-4 receipt date, (D) first pay in the next quarter, (E) first pay | | | | | |

| | in the next year. | | B | | 3. | |

4. | | Ron Case, married with four dependents, failed to complete and file Form W-4 with his employer. | | | | | |

| | The employer should (A) withhold federal income taxes as if Case were single and claimed six | | | | | |

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