Accounting 11 Review test

Each employer must file a federal tax return showing the federal income tax and social security and Medicare taxes due the government on a Form ____.

941

n the entry to journalize paying the liability for the first quarter federal unemployment tax, the account credited would be ____.

Cash

The source document for payment of a payroll is ____.

Check

The payroll journal entry is based on the totals of ____.

Earnings Total column, each deduction column, and Net Pay column

All businesses must use the Electronic Federal Tax Payment System to deposit payroll taxes.

False

An employee who earns $1,000.00 semimonthly will have unemployment taxable earnings until the middle of May.

False

Calculating federal and state unemployment tax is complicated because the state and federal unemployment tax regulations use different tax bases.

False

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

False

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

False

If 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.

False

In the journal entry for a payroll, the amount credited to Cash is the total of the Total Earnings column of the payroll register.

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

Separate payroll accounts for each employee are kept in the general ledger.

False

The column totals of an employee earnings record provide the debit and credit amounts needed to journalize a payroll.

False

The employer social security tax rate is not the same as the employee social security tax rate.

False

The only reason an employee receives a Form W-2 Wage and Tax Statement from an employer is to check it for accuracy.

False

The payment of payroll taxes with the government is referred to as a deposit.

False

The source document for journalizing employer payroll taxes is a check.

False

The source document for payment of a payroll is the time card.

False

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

False

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

False

Employers are required to furnish each employee an annual statement of earnings and withholdings before ____.

January 31 of the following year

Until the amounts withheld from employee salaries are paid by the employer, they are recorded as ____.

Liabilities

The Total Earnings column total is journalized as a debit to ____.

Salary Expense

To record the employer payroll taxes expense, the following accounts are credited:

Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable-Federal, and Unemployment Tax Payable-State

Amounts recorded in the General columns of a journal are posted individually to general ledger accounts.

True

An employer is not required to pay federal unemployment taxes on an employee who has already earned $7,000.00 during the calendar year.

True

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

True

Each pay period the payroll information for each employee is recorded on each employee earnings record.

True

Employee withheld income tax, employee social security and Medicare tax, and employer social security and Medicare tax are paid periodically to the federal government in a combined payment.

True

Employer payroll taxes are business expenses.

True

Employer payroll taxes expense is based on a percentage of employee earnings.

True

Employers must pay to the government the taxes withheld from employee earnings.

True

Form W-3, Transmittal of Income and Tax Statements, is sent to the Social Security Administration by February 28 each year.

True

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

True

The 12-month period that ends on June 30th of the prior year is called the lookback period.

True

The Internal Revenue Service provides businesses with a flowchart to assist them in determining when to make tax deposits.

True

The payroll register and employee earnings records provide all the payroll information needed to prepare a payroll.

True

In the entry to journalize employer payroll taxes expense for a semimonthly period, an account credited would be ____.

Unemployment Tax Payable-Federal

In the entry to journalize paying the liability for the first quarter federal unemployment tax, an account debited would be ____.

Unemployment Tax Payable-Federal

The report that shows total year's earnings and amounts withheld for taxes for an employee is prepared on Form ____.

W-2

The form used for the transmittal of the previous year's earnings and payroll taxes withheld for all employees is Form ____.

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

To record the total federal tax payment for employee income tax, social security tax and Medicare tax, the account credited is ____.

cash

In general, employers are required to pay state unemployment taxes ____.

during the month following each calendar quarter

Social security and Medicare taxes are paid by ____.

employers and employees

A federal tax used for state and federal administrative expenses of the unemployment program is ____

federal unemployment tax

When a semimonthly payroll is paid, the credit to Cash is equal to the ____.

net pay of all employees

In the entry to journalize employer payroll taxes expense for a semimonthly period, the account debited would be ____.

payroll taxes expense

Each employer must file a federal tax return showing the federal income tax and social security and Medicare taxes due the government ____.

quarterly

The entry to journalize paying a semimonthly payroll less deductions for employee income tax, social security and Medicare tax, and U.S. Savings Bonds is a credit to Cash and the liability accounts and a debit to ____.

salary expense

Employers must pay payroll taxes for ____.

social security and Medicare, federal unemployment, and state unemployment taxes

A state tax used to pay benefits to unemployed workers is ____.

state unemployment tax

All the payroll information needed to prepare a payroll and tax reports is found on ____.

the payroll register and the employee earnings record

The employer social security tax rate is based on ____.

the same rate and earnings as employee social security tax

The total earnings subject to federal unemployment tax is referred to as ____.

unemployment taxable earnings