Chapter 12
Total earnings are sometimes referred to as net pay or net earnings
false
a new earnings record is prepared for each employee each year
false
social security tax is paid by the employer only
flase
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 money paid to employees services is
paycheck
A business may decide to pay employee salaries every week, every two weeks, twice a month, or once a month
true
Federal income tax is withheld from employee earnings in all 50 states.
true
Payroll time cards can be used as the basic source of information to prepare a payroll
true
what does not reduce net pay
unemployment insurance
How many hours were worked by an employee who arrives at 8:10 am and left at 12:10?
4 hours
The larger the number of withholding allowances claimed, the larger the amount of income tax withheld.
false
the total amount earned by all employees in a pay period is called gross pay
false
Employees in many states are required to withhold state, city or country income tax from employee earnings
true
Payroll taxes withheld represent a liability for an employer until payment is made to the government
true
Social security and Medicare taxes are paid by both employees and employer.
true
The amount of income tax withheld from each employees total earnings is dertminded by the number of withholding allowances and by the employeer's martital status
true
The columns of the employee earnings record consist of the amount columns in a payroll register and an accumulated earnings column
true
When EFT is used, the employee does not receive an individual check
true
When an employee wages exceed the tax base no more social security tax is deducted
true
all payroll taxes are based on employees total earnings
true
total earnings are sometimes called gross pay or gross earnings
true
A deduction from total earnings for each person legally supported by a taxpayer, including the employee, is called a:
withholding allowance
how many hours were worled by an employee who arrived at 7:05 and left at 6:05 with one hour off lunch/
10 hours
A federal tax paid for hospital insurance
Medicare tax
An exemption from withholding taxes is available for:
certain low income employees
A business form used to record details affecting payments made to an employee
employee earning record
Social security tax is calculated as
employee earnings up to max paid in a calender year
A business form used to record details affecting payments made to an employee is called a payroll ledger.
false
A federal tax paid for hospital insurance is called Hospitalization tax.
false
A single person will have less income tax withheld than a married employee
false
Federal but not state governments may charge a business a penalty for failure to pay correct payroll taxes when they are due.
false
Payroll taxes withheld are an asset for the employer until payment is made to the government, as the amount is held in a bank account.
false
The amount of federal income tax withheld from each employee's total earnings is determined from withholding tables prepared by the:
internal revenue services
the period covered by a salary payment is
pay period
The total amount earned by all employees for a pay period
pay roll
Taxes based on the payroll of a business
payroll taxes
A separate pay roll checking account is used to primarly
provide additional protection and control payroll payments
Employee regular earnings are calculated as
regular hours times regular rate
A federal tax paid for old-age, survivors, and disability insurance is called:
social security tax
The maximum amount of earnings on which a tax is calculated is called:
tax base
The total pay due before deductions is
total earnings
A business form used to record payroll information is called a payroll register.
true
A check for the total net pay is written and deposited in the payroll checking account
true
All deductions from employee wages are recorded in a payroll register
true
An act of Congress can change the social security tax base and tax rate at any time.
true
An employee can be exempt from having federal income tax withheld under certain conditions
true
Employee total earnings are calculated as regular hours x regular rate, plus overtime hours x overtime rate
true