Acct Ch 13
Employers are required to furnish each employee an annual statement of earnings and withholding before ___________.
January 31 of the following year
An employer is not required to pay federal unemployment taxes on an employee who has already earned $7,000.00 during the calender year.
True
Employer payroll taxes expense is based on a percentage of employee earnings.
True
Employers must pay to the government the taxes withheld from employee earnings.
True
Employers payroll taxes are business expenses.
True
Some employers must deposit payments for withheld employees' federl income tax and social security and Medicare taxes on the next banking day.
True
Social security and Medicare taxes are paid by __________.
employers and employees
A federal tax used for state and federal administrative expenses of the unemployment program is _________.
federal unemployment tax
In the entry to journalize paying the liability for the first quarter federal unemployment tax, the account credited would be __________.
Cash
To record the total federal tax payment for employee income tax, social security tax and Medicare tax, the account credited is __________.
Cash
Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation.
False
If an employee's accumulated earnings are $6,500.00, and the employee earns another $1,500.00, the amount of new earnings subject to unemployment tax is $1,500.00.
False
In the journal entry for a payroll, the amount credited to Cash is the total of the Total Earnings column of the payroll register.
False
In the journal entry for a payroll, the amount debited to Salary Expense is the total of the Net Pay column of the payroll register.
False
The employer social security tax rate is not the same as the employee social security tax rate.
False
The source document for journalizing employer payroll taxes is a check.
False
The source document for payment of a payroll is the time card.
False
The tax base for Medicare tax is usually the same as the tax base for social security tax.
False
In the entry to journalize employer payroll taxes expenses for a semimonthly period, the account debited would be ________.
Payroll tax Expense
The Total Earnings column total is journalized as a debit to _________.
Salary Expense
The entry to journalize paying a semimonthly payroll less deductions for employee income tax, social security and Medicare tax, and U.S. Savings Bonds is a credit to Cash and liability accounts and a debit to ___________.
Salary Expense
To record the employer payroll taxes expense, the following accounts are credited:
Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax
Employee withheld income tax, employee social security and Medicare tax, and employer social security and Medicare tax are paid periodically to the federal government in a combined payment.
True
The 12-month period that ends on June 30th of the prior year is called the lookback period.
True
The report that shows total year's earnings and amounts withheld for taxes for an employee is prepared on form __________.
W-2
The source document for paying employee income tax and social security and Medicare tax is __________.
a check
The source document for paying state unemployment tax is __________.
a check
The source document for payment of a payroll is ________.
a check
To record the payment of federal unemployment tax, the account debited is __________.
a liability account
The total of the Net Pay column of the payroll register is credited to ________.
an asset account
Until the amounts withheld from employee salaries are paid by the employer, they are recorded as ________.
liabilities
When a semimonthly payroll is paid, the credit to Cash is equal to the _________.
net pay of all employees
Employers must pay payroll taxes for _______.
social security and Medicare, federal unemployment, and state unemployment, and state unemployment taxes
A state tax used to pay benefits to unemployed workers is ___________.
state unemployment tax
The total earnings subject to federal unemployment tax is referred to as ___________.
unemployment taxable earnings
