Chapter 12

Total earnings are sometimes referred to as net pay or net earnings

false

a new earnings record is prepared for each employee each year

false

social security tax is paid by the employer only

flase

The total earnings paid to an employee after payroll taxes and other deductions

net pay

The period covered by a salary payment

pay period

the money paid to employees services is

paycheck

A business may decide to pay employee salaries every week, every two weeks, twice a month, or once a month

true

Federal income tax is withheld from employee earnings in all 50 states.

true

Payroll time cards can be used as the basic source of information to prepare a payroll

true

what does not reduce net pay

unemployment insurance

How many hours were worked by an employee who arrives at 8:10 am and left at 12:10?

4 hours

The larger the number of withholding allowances claimed, the larger the amount of income tax withheld.

false

the total amount earned by all employees in a pay period is called gross pay

false

Employees in many states are required to withhold state, city or country income tax from employee earnings

true

Payroll taxes withheld represent a liability for an employer until payment is made to the government

true

Social security and Medicare taxes are paid by both employees and employer.

true

The amount of income tax withheld from each employees total earnings is dertminded by the number of withholding allowances and by the employeer's martital status

true

The columns of the employee earnings record consist of the amount columns in a payroll register and an accumulated earnings column

true

When EFT is used, the employee does not receive an individual check

true

When an employee wages exceed the tax base no more social security tax is deducted

true

all payroll taxes are based on employees total earnings

true

total earnings are sometimes called gross pay or gross earnings

true

A deduction from total earnings for each person legally supported by a taxpayer, including the employee, is called a:

withholding allowance

how many hours were worled by an employee who arrived at 7:05 and left at 6:05 with one hour off lunch/

10 hours

A federal tax paid for hospital insurance

Medicare tax

An exemption from withholding taxes is available for:

certain low income employees

A business form used to record details affecting payments made to an employee

employee earning record

Social security tax is calculated as

employee earnings up to max paid in a calender year

A business form used to record details affecting payments made to an employee is called a payroll ledger.

false

A federal tax paid for hospital insurance is called Hospitalization tax.

false

A single person will have less income tax withheld than a married employee

false

Federal but not state governments may charge a business a penalty for failure to pay correct payroll taxes when they are due.

false

Payroll taxes withheld are an asset for the employer until payment is made to the government, as the amount is held in a bank account.

false

The amount of federal income tax withheld from each employee's total earnings is determined from withholding tables prepared by the:

internal revenue services

the period covered by a salary payment is

pay period

The total amount earned by all employees for a pay period

pay roll

Taxes based on the payroll of a business

payroll taxes

A separate pay roll checking account is used to primarly

provide additional protection and control payroll payments

Employee regular earnings are calculated as

regular hours times regular rate

A federal tax paid for old-age, survivors, and disability insurance is called:

social security tax

The maximum amount of earnings on which a tax is calculated is called:

tax base

The total pay due before deductions is

total earnings

A business form used to record payroll information is called a payroll register.

true

A check for the total net pay is written and deposited in the payroll checking account

true

All deductions from employee wages are recorded in a payroll register

true

An act of Congress can change the social security tax base and tax rate at any time.

true

An employee can be exempt from having federal income tax withheld under certain conditions

true

Employee total earnings are calculated as regular hours x regular rate, plus overtime hours x overtime rate

true