Accounting Chapter 13 True or False
false
a business deposits the total of gross wages in a separate payroll checking account
false
federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation
false
the employer social security tax rate is different than the employee social security tax rate
true
Form W-2 reports an employee's annual earnings and the withholdings for federal income, social security, and Medicare taxes.
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.
true
Some employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes on the next banking day.
false
The tax base for Medicare tax is the same as the tax base for social security tax.
true
in each pay period, the payroll information for each employee is recorded on his her employee earnings record
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 payroll register provides all the payroll information needed to prepare a payroll
true
the timing of payroll tax payments is based on the amount owed
false
the transaction to record employer payroll taxes expense is journalized at the end of each quarter
true
Each employer is required by law to periodically report the payroll taxes withheld from employee salaries.
false
Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with a quarterly statement
true
employer payroll taxes are business expenses