Accounting: Chapter 12
The year-to-date gross earnings of an employee
accumulated earnings
An amount paid to an employee based on a percentage of the employee's sales
commission
A fixed amount of money paid to an employee for each pay period
salary
A record of the arrival time, departure time, and total number of hours worked each day for an employee
time card
A business may obtain a daily printout on employee work hours by using electronic badge readers
true
A payroll register is prepared for each pay period
true
FICA rates are changeable at any time by Congress
true
Form W-4 lists the marital status and the number of exemptions claimed by each employee
true
If an employee qualifies as exempt, he or she may not be required to pay federal or state income taxes in a given year
true
Most businesses use computers to prepare the payroll
true
The employee payroll is a major expense for most companies
true
The employer acts as a tax collection agent for the federal government
true
The number of columns on a payroll register varies depending on the company's specific needs
true
The payroll register is the source of information for preparing the paychecks
true
The payroll register summarizes information about employees' earning for the pay period
true
The social security system was established by the Federal Insurance Contributions Act
true
The social security tax and Medicare tax are both part of the FICA system
true
To ensure that taxpayers have the funds to pay their taxes, employers are required to withhold a certain amount of money from employees' earnings
true
When a company has only a few employees, paychecks are often written on the company's regular checking account
true
An amount of money paid to an employee at a specific rate per hour worked
wage
A voluntary payroll deduction that allows employees to defer paying taxes until retirement
401(k) plan
An amount subtracted from an employee's gross earnings
deduction
The employer's deposit of net pay in an employee's personal bank account is known as
direct deposit
An employee's gross earnings may be calculated by any of the four methods - salary, piece rate, hourly wage, or commission - but never by a combination of these methods
false
Employees paid by direct deposit have their gross pay electronically deposited in their personal bank accounts
false
Employees' earnings records are kept on a monthly basis to make it easier to complete government reports that are required
false
Overtime is paid to most employees after 44 hours of work in a pay week
false
Payroll is no a major expense of most businesses
false
The amount of taxes withheld from each employee's paycheck is the exact amount that the employee will owe at the end of the tax year
false
The more withholding allowances a taxpayer claims, the higher the amount of income taxes an employer withholds from earnings
false
The number of hours worked multiplied by the hourly wage gives the net earnings for the pay period
false
The total amount earned by an employee in a pay period
gross earnings
The amount of money left after all deductions are subtracted from the gross earnings paid to an employee
net pay
1 1/2 times an employee's regular hourly rate of pay and is paid for all the hours worked over 40 per work week
overtime rate
The amount of time for which an employee is paid
pay period
A list of the employees of a business and the payments use to each employee for a specific pay period
payroll
The person who is responsible for preparing the payroll
payroll clerk
A form that summarizes information about employees' earning for each pay period
payroll register