Accounting Chapter 12
true
FICA rates are changeable at any time by Congress
medicare
FICA taxes include social security and _________ taxes
payroll
contributions to 401(k) plan are an example of a ________ deduction
false
employees paid by direct deposit have their gross pay electronically deposited in their personal bank accounts
false
employees' earnings records are kept on a monthly basis to make it easier to complete government reports that are required
true
form W-4 lists the marital status and the number of exemptions claimed by each employee
true
if an employee qualifies as exempt, he or she may not be required to pay federal or state income taxes in a given year
timecard
most businesses use a(n) ________ to keep track of an hourly wage employee's hours
true
most businesses use computers to prepare the payroll
false
overtime is paid to most employees after 44 hours of work in a pay week
false
payroll is not a major expense of most businesses
pay period
the _____ is the amount of time for which an employee is paid
net pay
the ______ is the amount of money left after all deductions are subtracted from the gross earnings paid to an employee
gross earnings
the ______ is the total amount earned by the employee in the pay period
payroll register
the _______ is a form that summarizes information about employee's earnings for each pay period
overtime rate
the ________ is 1.5 times an employee's regular hourly rate of pay and is paid for all hours worked over 40 per work week
net pay
the amount of money actually received by the employee after all deductions are subtracted is called the ______
allowances
the amount of tax withheld from an employee's earnings depends on the number of _______ claimed
false
the amount of taxes withheld from each employee's paycheck is the exact amount that the employee will owe at the end of the tax year
pay period
the amount of time for which an employee is paid is called the _____
net pay
the amount the employee receives for a pay period is _______
true
the employee payroll is a major expense for most companies
true
the employer acts as a tax collection agent for the federal government
direct deposit
the employer's deposit of net pay in an employee's personal bank account is known as ______
false
the more withholding allowances a taxpayer claims, the higher the amount of income taxes an employer withholds from earnings
true
the number of columns on a payroll register varies depending on the company's specific needs
false
the number of hours worked multiplied by the hourly wage gives the net earnings for the pay period
1.5
the overtime rate is ______ times an employee's regular hourly pay
true
the payroll register is the source of information for preparing the paychecks
true
the payroll register summarizes information about employees' earnings for the pay period
payroll clerk
the person who is responsible for preparing the payroll is called a(n) ______
true
the social security system was established by the federal insurance contributions act
true
the social security tax and medicare tax are both part of the FICA system
gross earnings
the total amount an employee earns during a pay period is ________
gross earnings
the total amount earned by an employee in a pay period is called ______
accumulated earnings
the year-to-date gross earnings of an employee are called _______
true
to ensure that taxpayers have the funds to pay their taxes, employers are required to withhold a certain amount of money from employees' earnings
true
when a company has only a few employees, paychecks are often written on the company's regular checking account
quarter
when calculating hours worked, the time is rounded to the nearest _______ hour
false
an employee's gross earnings may be calculated by any of the four methods---salary, piece rate, hourly wage, or commission---but never by a combination of these methods
commission
an employee who is paid a percentage of sales works on ______
accumulated earnings
_______ are the year-to-date gross earnings of an employee
payroll
a _____ is a list of employees and payments due to each for a specific pay period
salary
a __________ is a fixed amount of money paid to an employee
true
a business may obtain a daily printout on employee work hours by using electronic badge readers
salary
a fixed amount of money paid to an employee for each pay period is a(n) _____
payroll
a list of employees in a business and the earnings due each employee for a specific period of time is a(n) _____
true
a payroll register is prepared for each pay period
time card
a record of the arrival time, departure time, and total number of hours worked each day for an employee is kept on a(n) ______
401 (k) plan
a voluntary payroll deduction that allows employees to defer paying taxes until retirement is called a(n) ________
direct deposit
a(n) _____ is the deposit by the employer of an employee's net pay into a personal bank account
deduction
a(n) ______ is an amount subtracted from gross earnings
commission
a(n) ______ is paid to the employee as a percentage of the employee's sales
wage
a(n) _______ is an amount of money paid to an employee at a specific rate per hour worked
payroll
a(n) ________ is a list of the employees of a business and the payments due to each employee for a specific pay period
commission
an amount paid to an employee based on a percentage of the employee's sales is a(n) ______
wage
an amount paid to employees at a specific rate per hour is a(n) ______
deduction
an amount subtracted from an employee's gross earnings is a(n) ______
