Century 21 Accounting - Chapter 13

Wage garnishment

A process that requires an employer to withhold a portion of an employee's paycheck to pay a court-ordered debt settlement.16. Earnings paid to an employee after payroll taxes and other deductions.

State unemployment tax

A state tax paid by employers that is used to pay benefits to unemployed workers

D

A state tax used to pay benefits to unemployment workers is the A) social security tax B) Medicare tax C) unemployment tax D) state unemployment tax

C

A tax paid to administer the unemployment program is the A) social security tax B) Medicare tax C) federal unemployment tax D) state unemployment tax

C

All the payroll information needed to prepare payroll and tax reports is found on A) form w-4 and the employee earnings record B) form w-4 and the payroll register C) the payroll register and the employee earnings record D) form w-4

C

An employee's earnings subject to unemployment taxes are referred to as A) gross earnings B) net earnings C) FUTA earnings D) accumulated earnings

B

Each employer is required by law to report payroll taxes on an A) IRS form w-4 B) IRS form 941 C) IRS form w-2 D) IRS form w-3

B

Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee an A) IRS form w-4 B) IRS form w-2 C) IRS form w-3 D) IRS form 941

B

Employer payroll taxes are A) assets B) expenses C) revenues D) none of these

C

Payroll taxes that are paid by both the employer and the employee are A) federal unemployment tax and social security tax B) federal unemployment tax and Medicare tax C) social security tax and Medicare tax D) federal income tax, social security tax, and Medicare tax

Look back period

The 12-month period that ends on June 30th of the prior year that is used to determine how frequently a business must deposit payroll taxes

Controller

The chief accountant in an organization, having responsibility for both financial and managerial accounting activities. Sometimes called comptroller.

C

The form used to report annual earnings and payroll taxes for all employees to the social security administration is the A) w-2 B) form 941 C) w-3 D) w-4

Deposit

The payment of payroll taxes to the government

A

The payroll journal entry is based on the total of the payroll register A) total earnings column, each deduction column, and the net pay column B) total earnings, earnings regular, earnings overtime, and deductions total columns C) earnings regular, earnings overtime, and deductions total columns D) total earnings, earnings regular, and earnings overtime total columns

B

The total earnings column total of a payroll register is journalized as a debit to A) cash B) salary expense C) employee income tax payable D) social security tax payable

Salary expense

The total gross earnings for all employees earning hourly wages, salaries, and commissions

C

The total of the federal income tax column on the payroll register is credited to A) a revenue account B) an expense account C) a liability account D) an asset account

C

The total of the net pay column of the payroll register is credited to A) a revenue account B) an expense account C) an asset account D) a liability account

C

To record the payment of federal unemployment tax, the account debited is A) a revenue account B) an expense account C) a liability account D) an asset account

D

When a semimonthly payroll is paid, the credit to cash is equal to A) total earnings of all employees B) total deductions for income tax and social security tax C) total deductions D) net pay of all employees

federal unemployment tax

a federal tax used for state and federal administrative expenses of the unemployment program