Chapter 13
When paying cash for tax liabilities, you debit
All of the above
When does a monthly schedule depositor deposit taxes for the month?
Deposit taxes by the 15th of the following month
A business deposits the total of gross wages in a separate payroll checking account
FALSE
Amount Debited to Salary Expense is the total of the Net Pay column of the payroll register
FALSE
Employer who w/holds taxes from employee earnings must furnish employee with quarterly statement
FALSE
Federal unemployment insurance laws require employers & employees pay tax for unemployment
FALSE
The employer social security tax rate is different than the employee social security tax rate
FALSE
The payroll register provides all the payroll information needed to prepare a payroll
FALSE
The tax base for Medicare is the same as the tax base for social security tax
FALSE
Transaction to record employer payroll taxes expense is journalized at the end of the quarter
FALSE
When recording employer payroll taxes expense, Social Security Tax & Medicare Tax are doubled
FALSE
An employee's earnings subject to unemployment taxes are referred to as
FUTA earnings
Each employer is required by law to report payroll taxes on an
IRS Form 941
Employers are required to give employees an annual statement of earnings & withholdings before
January 31 of the following year
When paying cash for semimonthly payroll, you credit Cash for
Net Pay
The Total Earnings column total of a payroll register is journalized as a debit to
Salary Expense
Each pay period, the payroll info for employee is recorded on his/her employee earnings record
TRUE
Employer is required by law to periodically report payroll taxes withheld from employees
TRUE
Employer payroll taxes are business expenses
TRUE
Form W-2 reports an employee's annual earnings and withholdings taxes
TRUE
Paying cash for tax liabilities, Soc. Security & Medicare need to account for employee/employer
TRUE
Some employers must deposit payments for withheld taxes on the next banking day
TRUE
The timing of payroll tax payments is based on the amount owed
TRUE
When paying cash for semimonthly payroll, Salary Expense is debited
TRUE
When paying cash for semimonthly payroll, you debit Salary Expense for
Total Earnings
The payroll journal entry is based on the totals of the payroll register
Total Earnings, each deduction, & Net Pay
Form used to report annual earnings & taxes for all employees to the Soc. Security Admin. is
W-3
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 total of the Federal Income Tax column of a payroll register is credited to
a liability account
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
The payment of a payroll taxes to the government is referred to as a
deposit
In general, employers are required to pay state unemployment taxes
during the month following each calendar quarter
Employer payroll taxes are
expenses
Federal tax used for state & federal administrative expenses of the unemployment program is the
federal unemployment tax
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
Each employer must file a (-) federal tax return showing the taxes due to the government
quarterly
Payroll taxes that are paid by both the employer and the employee are
social security tax and Medicare tax
A state tax used to pay benefits to unemployed workers is
state unemployment tax
A state tax used to pay benefits to unemployed workers is the
state unemployment tax
All the payroll information needed to prepare payroll and tax reports is found on
the payroll register and the employee earnings record
The total earnings subject to federal unemployment tax is referred to as
unemployment taxable earnings
