Accounting Ch. 13

False

All deductions from Mr. Butler's salary for taxes and retirement plan contributions are shown on his Form W-2.

C.

All the payroll information needed to prepare payroll and tax reports is found on (A) Form W-4 and the employee earnings record (B) Form W-4 and the payroll register (C) the payroll register and the employee earnings record (D) Form W-4.

C.

An employee's earnings subject to unemployment taxes are referred to as (A) gross earnings (B) net earnings (C) FUTA earnings (D) accumulated earnings.

True

An employer is required to provide employees with a Form W-2 no later than January 31 of the year following the one for which the report has been completed.

False

State income tax was withheld from Mr. Butler's salary.

look back period

The 12-month period that ends on June 30th of the prior year that is used to determine how frequently a business must deposit payroll taxes

B.

The Total Earnings column total of a payroll register is journalized as a debit to (A) Cash (B) Salary Expense (C) Employee Income Tax Payable (D) Social Security Tax Payable.

True

The amount withheld for Mr. Butler's social security and Medicare tax was more than the amount withheld for his federal income tax.

controller

The chief accountant in the organization, having responsibility for both financial and managerial accounting activities. Sometimes call comptroller

C.

The form used to report annual earnings and payroll taxes for all employees to the Social Security Administration is the (A) W-2 (B) Form 941 (C) W-3 (D) W-4

A.

The payroll journal entry is based on the totals of the payroll register (A) Total Earnings column, each deduction column, and the Net Pay column (B) Total Earnings, Earnings Regular, Earnings Overtime, and Deductions Total columns (C) Earnings Regular, Earnings Overtime, and Deductions Total columns (D) Total Earnings, Earnings Regular, and Earnings Overtime Total columns.

deposit

the payment of payroll taxes to the government

wage garnishment

the process that requires an employer to withhold a portion of an employee's paycheck to pay a court-ordered debt settlement

C.

A federal tax used for state and federal administrative expenses of the unemployment program is the (A) social security tax (B) Medicare tax (C) federal unemployment tax (D) state unemployment tax.

D.

A state tax used to pay benefits to unemployed workers is the (A) social security tax (B) Medicare tax (C) federal unemployment tax (D) state unemployment tax

True

Businesses in states with state income tax must prepare additional copies of Form W-2.

B.

Each employer is required by law to report payroll taxes on an (A) IRS Form W-4 (B) IRS Form 941 (C) IRS Form W-2 (D) IRS Form W-3.

B.

Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee an (A) IRS Form W-4 (B) IRS Form W-2 (C) IRS Form W-3 (D) IRS Form 941.

B.

Employer payroll taxes are (A) assets (B) expenses (C) revenues (D) none of these.

True

If an employee works for several employers during the year, that employee must receive a Form W-2 from each employer.

False

John Butler's total salary is more than his total social security salary.

C.

Payroll taxes that are paid by both the employer and the employee are (A) federal unemployment tax and social security tax (B) federal unemployment tax and Medicare tax (C) social security tax and Medicare tax (D) federal income tax, social security tax, and Medicare tax.

salary expense

The total of gross earnings for all employees earning hourly wages, salaries, and commissions

C.

The total of the Federal Income Tax column of a payroll register is credited to (A) a revenue account (B) an expense account (C) a liability account (D) an asset account.

C.

The total of the Net Pay column of the payroll register is credited to (A) a revenue account (B) an expense account (C) an asset account (D) a liability account

False

This Form W-2 shows John Butler's net pay for the entire year.

False

This Form W-2 would indicate whether Mr. Butler had more than one employer during the year.

C.

To record the payment of federal unemployment tax, the account debited is (A) a revenue account (B) an expense account (C) a liability account (D) an asset account.

False

When John Butler files his federal income tax return, he must attach Copy A of Form W-2 to his return.

D.

When a semimonthly payroll is paid, the credit to Cash is equal to the (A) total earnings of all employees (B) total deductions for income tax and social security tax (C) total deductions (D) net pay of all employees

state unemployment tax

a state tax paid by employers that is used to pay benefits to unemployed workers