Accounting Chapter 13 True or False

false

a business deposits the total of gross wages in a separate payroll checking account

false

federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation

false

the employer social security tax rate is different than the employee social security tax rate

true

Form W-2 reports an employee's annual earnings and the withholdings for federal income, social security, and Medicare taxes.

false

If the tax base for calculating unemployment taxes is $7,000 and 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.

true

Some employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes on the next banking day.

false

The tax base for Medicare tax is the same as the tax base for social security tax.

true

in each pay period, the payroll information for each employee is recorded on his her employee earnings record

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 payroll register provides all the payroll information needed to prepare a payroll

true

the timing of payroll tax payments is based on the amount owed

false

the transaction to record employer payroll taxes expense is journalized at the end of each quarter

true

Each employer is required by law to periodically report the payroll taxes withheld from employee salaries.

false

Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with a quarterly statement

true

employer payroll taxes are business expenses