Payments received as workers’ compensation benefit are not included in an employee’s gross income and are not subject to social security, Medicare, or FUTA taxes.
a. T
b. F
Director Steven Spielberg earned $332 million from June 2005 to June 2006, or about $159,615 per hour*. What did a worker in America receive per hour if he or she earned the federal minimum wage during that same time?
*Calculation based on a 40 hour workweek for 52 weeks. *
a. $4.75 an hour
b. $5.15 an hour
c. $5.30 an hour
d. $5.50 an hour
Gifts provided to an employee by his or her employer are excluded from income.
a. T
b. F
Which of the following is governed by the FLSA?
a. The frequency of pay for employees
b. Recordkeeping requirements
c. Hours worked by employees over the age of 16
d. Lunch and rest break requirements
What journal entry is made to record the deposit of federal income tax?
a. Debit payroll taxes expense, credit federal income tax payable
b. Debit cash, credit federal income tax payable
c. Credit payroll taxes expense, debit cash
d. Debit federal income tax payable, credit cash
