Q 01/05

Per US survey figures on the Wikipedia payroll page, which pay frequency do about 46% of employers use?

A) Weekly

B) Semi-monthly

C) Monthly

D) Biweekly

Answer · why

D) Biweekly

That means 26 pay periods a year. Weekly is next at about 32%, semi-monthly 18% and monthly under 5%.

Q 02/05

How many pay periods does a semi-monthly payroll produce in a year?

A) 26

B) 48

C) 24

D) 52

Answer · why

C) 24

Two pay dates per month. Biweekly produces 26, which is why some months have three paydays.

Q 03/05

What is the term for an employee's total earnings before any taxes or deductions are taken out?

A) Net pay

B) Take-home pay

C) Base pay

D) Gross pay

Answer · why

D) Gross pay

For hourly workers it is simply the rate multiplied by regular hours, before overtime and deductions.

Q 04/05

FICA payroll taxes fund which two federal programs?

A) Medicaid and food stamps

B) Unemployment and workers' comp

C) Federal pensions and veterans' benefits

D) Social Security and Medicare

Answer · why

D) Social Security and Medicare

The Federal Insurance Contributions Act tax is paid by both employees and employers and sits in Chapter 21 of the tax code.

Q 05/05

Since 1990, the employee's Social Security share of FICA has been what percentage of pay?

A) 7.65%

B) 12.4%

C) 6.2%

D) 15.3%

Answer · why

C) 6.2%

The employer matches it. It applies only up to the Social Security Wage Base, which rises each year with average national wages.