Accounting Final

false

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

state unemployment tax

A state tax used to pay benefits to unemployed workers is

true

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

quarterly

Each employer must file a _________ federal tax return showing the federal income tax, social security tax, and Medicare tax due the government

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

January 31 of the following year

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

false

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

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

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

during the month following each calendar quarter

In general, employers are required to pay state unemployment taxes

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

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 employer social security tax rate is different than the employee social security tax rate

deposit

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

false

The payroll register provides all the payroll information needed to prepare a payroll

a check

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

false

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

true

The timing of payroll tax payments is based on the amount owed

unemployment taxable earnings

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

false

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

liabilities

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