Accounting I Chapter 12 Review

A(n) ____ is paid to the employee as a percentage of the employee's sales.

Commission

A(n) ____ is an amount subtracted from gross earnings.

Deduction

If an employee has ____,the employer placed the employee's net pay into their personal bank account.

Direct Deposit

A(n) ____ is a device used to scan certain information encoded on a magnetic strip on an employee's time card or identification badge.

Electronic Badge Readers

The ____ is an individual payroll record kept for each employee.

Employee's Earning Records

The amount deducted from gross earnings for federal income tax each pay period depends on the total earnings, marital status, and the number of ____ an employee claims on Form W-4.

Exemptions

The FICA tax has no maximum taxable amount.

False

The number of hours worked multiplied by the hourly wage gives the net earnings for the pay period.

False

The overtime rate set by the Fair Labor Standards Act of 1938 is two times the employee's regular hourly pay rate.

False

The ____ is the total amount earned by the employee in the pay period.

Gross Earnings

A Form W-4 lists the marital status and number of exemptions claimed by the employee.

True

An example of a voluntary deduction is one for a health insurance premium.

True

Businesses often use computers and special software to prepare payroll in an effort to reduce simple mathematical errors and to improve productivity.

True

The payroll register summarizes information about employees' earnings during a pay period.

True

The total FICA tax is divided into two parts: the social security tax and the Medicare tax.

True

An amount of money paid to employees at a specific rate per hour is a(n) ____.

Wage

____ are the year-to-date gross earnings of an employee.

Accumulated Earnings

The amount of money actually received by the employee after all deductions are subtracted is called the ____.

Net Pay

An employee paid 1 1/2 times the regular wage is paid at a(n) ____.

Overtime Rate

The amount of time for which an employee is paid is called the ____.

Pay Period

A list of employees in a business and the earnings due to each employee for a specific period of time is a(n) ____.

Payroll

The individual who prepares the payroll is called the ____.

Payroll Clerk

A(n) ____ is a form summarizing information about employees' earnings for each pay period.

Payroll Register

A(n) ____ is a fixed amount of money paid to an employee each pay period.

Salary

Most companies use a(n) ____ to keep track of an hourly wage employee's hours.

Time Card