Gross payroll is $35,000 and employee withholdings are $7,800. What net payroll cash is paid to employees?
Correct Answer
D) $27,200.
Net payroll paid to employees is gross payroll minus employee withholdings: $35,000 - $7,800 = $27,200.
Why This Is the Correct Answer
Net payroll paid to employees is gross payroll minus employee withholdings: $35,000 - $7,800 = $27,200.
Why the Other Options Are Wrong
Option A: $7,800.
$7,800. is below the supported result for net payroll; it likely skips a premium-pay or employer-cost component.
Option B: $27,000.
$27,000. is below the supported result for net payroll; it likely skips a premium-pay or employer-cost component.
Option C: $35,000.
$35,000. is above the supported result for net payroll; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Who controlled paid, who paid employees, where is the Reconciling Cash record?
Reference Hint
Study anchor (closed-book): memorize Net payroll from CSLB Law and Business Study Guide; California Employment Development. / California EDD payroll concepts; know the rule or calculation trigger without relying on exam-room lookup.
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