Accounting Chapter 13

In general, employers are required to pay state unemployment taxes (A) monthly. (B) during the month following each calendar quarter. (C) annually. (D) none of these.

B

Until the amounts withheld from employee salaries are paid by the employer, they are recorded as (A) assets. (B) liabilities. (C) salary expense. (D) revenue.

B

Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings 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 the tax base for calculating unemployment taxes is $7,000 and 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 debited to Salary Expense is the total of the Net Pay column of the payroll register.

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 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

Employer payroll taxes are business expenses.

True

The timing of payroll taxes payments is based on the amount owed.

True

The source document for paying employee income tax, social security tax, and Medicare tax is (A) a check. (B) a receipt. (C) a memorandum. (D) none of these.

A

The source document for paying state unemployment tax is (A) a check. (B) a receipt. (C) a memorandum. (D) none of these.

A

The total earnings subject to federal unemployment tax is referred to as (A) unemployment taxable earnings. (B) taxable earnings. (C) gross earnings. (D) total earnings.

A

Each employer must file a ___________ federal tax return showing the federal income tax, social security tax, and Medicare tax due the government. (A) monthly (B) quarterly (C) yearly (D) semiannually

B

The payment of payroll taxes to the government is referred to as a (A) tax reimbursement. (B) transfer payment. (C) deposit. (D) tax fulfillment.

C

A state tax used to pay benefits to unemployed workers is (A) social security tax. (B) Medicare tax. (C) unemployment tax. (D) state unemployment tax.

D

Employers are required to furnish each employee with an annual statement of earnings and withholdings before (A) December 31 of the current year. (B) January 1 of the following year. (C) January 15 of the following year. (D) January 31 of the following year.

D

A business deposits the total of gross wages in a separate payroll checking account.

False

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

True

Form W-2 reports an employee's annual earnings and the withholdings for federal income, social security, and Medicare taxes.

True

In each pay period, the payroll information for each employee is recorded on his or her employee earnings record.

True

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

True