Practice Test Geeks(CA) Chartered Certified Accountant Practice Test
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Payroll Processing & Administration Flashcards

7 cards from real CA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Payroll Processing & Administration flashcards as text

  1. An employer deposits payroll taxes using the monthly deposit schedule. For March wages paid on March 31, by what date must the deposit be made?

    Answer: April 15

    Monthly depositors must deposit taxes accumulated during each calendar month by the 15th of the following month.

  2. Which of the following is a correct statement about the Additional Medicare Tax under the ACA?

    Answer: The 0.9% surtax applies to wages exceeding $200,000 for single filers

    Employers must withhold the 0.9% Additional Medicare Tax on wages over $200,000 paid to an employee in a calendar year; there is no employer match.

  3. A salaried exempt employee is absent for three full days due to personal reasons and the employer docks pay. What is the FLSA implication?

    Answer: Impermissible; docking destroys the salary basis and may eliminate exemption

    Docking an exempt employee's pay for partial-week personal absences violates the salary basis test and can destroy the FLSA exemption.

  4. What is the purpose of the IRS Publication 15 (Circular E)?

    Answer: To provide employers with federal income tax withholding tables and payroll tax guidance

    IRS Publication 15 (Employer's Tax Guide) provides withholding tables and instructions for calculating federal payroll taxes.

  5. Under IRC Section 125, a cafeteria plan allows employees to pay for qualified benefits with pre-tax dollars. Which of the following is NOT a qualified benefit under a Section 125 plan?

    Answer: Vacation pay cash-out

    Vacation pay cash-outs are not a qualified benefit under Section 125 and cannot be paid with pre-tax dollars through a cafeteria plan.

  6. An employee's gross pay is $5,000 per month. Their pre-tax 401(k) contribution is $500 and health insurance premium is $200. What is the employee's FICA taxable wage base for that month?

    Answer: $4,800

    401(k) contributions reduce federal income tax but not FICA wages; only the $200 health premium (Section 125) reduces FICA, leaving $4,800 subject to FICA.

  7. Which form must employers file to report annual federal unemployment (FUTA) tax?

    Answer: Form 940

    Form 940 (Employer's Annual Federal Unemployment Tax Return) is used to report and pay FUTA tax annually.