Chapters 12-13
A state tax used to pay benefits to unemployed workers is the (A) social security tax (B) Medicare tax (C) unemployment tax (D) state unemployment tax
D
True or False: Social security tax is paid by the employer only.
False
True or False: Total earnings are sometimes referred to as net pay or net earnings.
False
The maximum amount of earnings on which a tax is calculated.
Tax base
True or False: A business is required by law to withhold federal income taxes from employee total earnings.
True
True or False: A check for the total net pay is written and deposited in the payroll checking account.
True
True or False: A single person will have less income tax withheld than a married employee.
True
True or False: All deductions from employee wages are recorded in a payroll register.
True
True or False: Businesses use payrolls records to inform employees of their annual earnings and to prepare payroll reports for the government.
True
True or False: Employee total earnings are calculated as regular hours x regular rate, plus overtime hours x overtime rate.
True
True or False: Payroll taxes withheld represent a liability for an employer until payment is made to the government.
True
True or False: Payroll time cards can be used as the basic source of information to prepare a payroll.
True
True or False: The amount of income tax withheld from each employee's total earnings is determined from the number of withholding allowances and by the employee's marital status.
True
True or False: The information used to prepare payroll checks is takes from a payroll register.
True
True or False: When an employee's earnings exceed the tax base, no more social security tax is deducted.
True
A deduction from total earnings for each person legally supported by a taxpayer, including the employee.
Withholding allowance
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
The Earnings Total column total is journalized as a debit to (A) Cash (B) Salary Expense (C) Employee Income Tax Payable (D) Social Security Tax Payable
B
A federal tax used for state and federal administrative expenses of 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 a 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) From W-4
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 and medicare tax (D) federal income tax, social security tax, and Medicare tax
C
The total of the Federal Income Tax column of a payroll register is credited to (A) a revenue account (B) an expense account (C) a liability account (D) an asset account
C
Social security tax is calculated on (A) total earnings and marital status (B) number of withholding allowances (C) total earnings and number of withholding allowances (D) employee earnings up to a maximum paid in a calendar year.
D
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
D
When a semimonthly payroll is paid, the credit Cash is equal to the (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
D
A business form used to record details affecting payments made to an employee.
Employee earnings record
A federal tax paid for hospital insurance.
Medicare tax
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 total amount earned by all employees for a pay period.
Payroll
A business form used to record payroll information.
Payroll register
Taxes based on the payroll of a business.
Payroll taxes
The money paid for employee services
Salary
A federal tax paid for old-aged, survivors, and disability insurance.
Social security tax
The total pay due for a pay period before deductions.
Total earnings