Accounting II chapter 3

Current period earnings are $550.00. Deductions for the payroll period are $112.45. The previous period's accumulated earnings are $12,862.44. The new accumulated earnings are ____.

$13,412.44

Current period earnings are $830.00. Deductions for the payroll period are $145.24. The previous period's accumulated earnings are $5,422.68. The new accumulated earnings are ____.

$6,252.68

Kristin Brown earns $10.00 per hour for all hours worked up to 40 each week. She earns 1 1/2 her hourly rate for all hours worked in excess of 40 hours. She is paid biweekly. If Kristin works 45 hours one week and 42 hours the next week, her total biweekly earnings are ____.

$905

Total sales for the previous month were $32,684. Sales discounts were $188 and sales returns and allowances were $440. Roberta Franklin is paid a 1% commission on net sales. Her commission for the previous month amounted to ____.

320.56

All time worked in excess of ____ hours in any one week is considered overtime.

40

Total sales for the previous month were $44,860. Sales discounts were $642 and sales returns and allowances were $418. Devon Bennett is paid a 1% commission on net sales. His commission for the previous month amounted to ____.

438.00

Ross Wagner earns $8.00 per hour for all hours worked up to 40 each week. He earns 1 1/2 his hourly rate for all hours worked in excess of 40 hours. He is paid biweekly. If Ross works 43 hours one week and 40 hours the next week, his total biweekly earnings are ____.

676

A payroll register does not need to categorize earnings by department, since, the employee earnings record provides the departmental information.

False

The yearly report of each employee's total salary earned and the total taxes withheld is provided on which form?

Form W-2

When journalizing a payroll, the liability amounts are entered in the cash payments journal in the

General Credit column

The accounting concept that is applied when payroll taxes are reported as a separate item in the accounting records and on financial statements is

Materiality

Taxes used to pay cash benefits to qualified workers for limited periods of unemployment are known as unemployment taxes.

True

In a departmental payroll register, administrative salaries represent the earnings of

all nondepartmental personnel

Unemployment taxes are paid by the employer and are due to the ____.

both federal and state government

When employees are paid a percentage of sales in addition to their regular salary, the earnings are often referred to as ____.

commissions

When all employees have cashed their payroll checks, the balance of the payroll bank account ____.

equals zero

In a biweekly payroll system employees are paid ____.

every two weeks

A tax base is the lowest amount of earnings on which a tax is calculated.

false

If the business uses a special bank account for payroll, the general ledger will include an account commonly known as Payroll Checking.

false

In an employer's annual state unemployment tax liability is less than $100.00, the employer makes annual payments.

false

The federal income taxes that must be withheld from the pay of every employee are federal income tax, sales tax, social security tax, and Medicare tax.

false

The period covered by a salary payment is called a salary period.

false

The typical overtime rate is $1.00 more than the regular hourly rate.

false

Employer payroll taxes include all of the following, except ____.

federal income tax

A tax which is not deducted from employee's pay is ____.

federal unemployment tax

The amount due an individual for a pay period after deductions is referred to as ____.

none of the above

The total amount earned by all employees for a pay period is called ____.

payroll

A business form used to record payroll information is called a ____.

payroll register

If the annual federal unemployment tax for a business is $100.00 or more, the business must make ____.

quarterly payments in the month following the end of the quarter

The money paid for employee services is called ____.

salary

The frequency of employer payments of payroll taxes is determined by ____.

the amount owed

The date that appears at the top of the employee earnings record is ____.

the last day of the quarter

In a payroll register, the net pay represents ____.

total earnings less total deductions

A business form used to record details affecting payments made to an employee is called an employee earnings record.

true

A business form used to record payroll information is called a payroll register.

true

A withholding allowance deduction reduces the amount of income tax withheld from an employee's earnings.

true

All semiweekly schedule depositors having total deposits in excess of $200,000 per year must deposit the amounts accumulated using the Electronic Federal Tax Payment System (EFTPS).

true

All time worked in excess of 40 hours in any one week is considered overtime and paid at 1 1/2 times the regular rate.

true

Depositing net pay directly to an employee's checking or savings account is an example of electronic funds transfer.

true

Depositing payroll checks directly to an employee's checking or savings accounts in a specific bank is called an automatic check deposit.

true

Electronic funds transfer eliminates the need for preparing payroll checks. Instead, each employee simply receives a statement of earnings and deductions.

true

Employers make periodic payments to the government for all payroll taxes withheld from employees, as well as for employer payroll taxes.

true

Federal, state, and local laws require employers to keep records of the payroll information and other payments related to employee services.

true

Laws for handling city, county, and state taxes vary.

true

Taxes based on the payroll of a business are called payroll taxes.

true

The payment of the payroll is journalized in the cash payments journal.

true

The source document for journalizing employer payroll taxes is a memorandum.

true

The total amount earned by all employees for a pay period is called a payroll.

true

The total earnings, marital status, and the number of withholding allowances claimed by an employee determine the federal income tax withheld.

true

Typical employee benefits in which payments are made to employees for hours not worked include vacation time, sick leave time, and personal leave time.

true

Accumulated earnings are also known as ____.

year-to-date earnings

When a special payroll account is used, the balance after all payroll checks have been cashed is

zero