Accounting Test: Unit 13.12 (true and false)
The column totals of an employee earnings record provide the debit and credit amounts needed to journalize a payroll.
False
The employer social security tax rate is not the same as the employee social security tax rate.
False
The only reason an employee receives a Form W-2 Wage and Tax Statement from an employer is to check it for accuracy.
False
The payment of payroll taxes with the government is referred to as a deposit.
False
The source document for journalizing employer payroll taxes is a check.
False
The source document for payment of a payroll is the time card.
False
The tax base for Medicare tax is usually 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
Amounts recorded in the General columns of a journal are posted individually to general ledger accounts.
True
An employer is not required to pay federal unemployment taxes on an employee who has already earned $7,000.00 during the calendar year.
True
Each employer is required by law to periodically report the payroll taxes withheld from employee salaries.
True
Each pay period the payroll information for each employee is recorded on each employee earnings record.
True
Employee withheld income tax, employee social security and Medicare tax, and employer social security and Medicare tax are paid periodically to the federal government in a combined payment.
True
Employer payroll taxes are business expenses.
True
Employer payroll taxes expense is based on a percentage of employee earnings.
True
Employers must pay to the government the taxes withheld from employee earnings.
True
Form W-3, Transmittal of Income and Tax Statements, is sent to the Social Security Administration by February 28 each year.
True
Separate payroll accounts for each employee are kept in the general ledger.
True
Some employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes on the next banking day.
True
The 12-month period that ends on June 30th of the prior year is called the look back period.
True
The Internal Revenue Service provides businesses with a flowchart to assist them in determining when to make tax deposits.
True
The payroll register and employee earnings records provide all the payroll information needed to prepare a payroll.
True
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
All businesses must use the Electronic Federal Tax Payment System to deposit payroll taxes.
False
An employee who earns $1,000.00 semimonthly will have unemployment taxable earnings until the middle of May.
False
Calculating federal and state unemployment tax is complicated because the state and federal unemployment tax regulations use different tax bases.
False
Each employer who withholds income tax and social security and Medicare tax from employee salaries 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 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 credited to Cash is the total of the Total Earnings column of the payroll register.
False