Accounting Chapter 13
Debit or Credit the total amount of net pay of all employees is entered on the ____________ side of the cash in bank account
credit
Debit or Credit an increase in the state unemployment tax payable account is recorded as a ____________.
credit
Debit or Credit the medicare tax payable account has a normal _____________ balance.
credit
Debit or Credit the payroll tax expense account has a normal _____________ balance.
debit
Debit or Credit the salaries expense account has a normal _______________ balance
debit
T or F the salary expense of a business is equal to the total gross earnings
true
T or F the taxes that an employer must pay are FICA taxes and unemployment taxes.
true
the form that is prepared and sent with the employer's check to show the amount of taxes being sent to the federal government is a
Federal tax deposit coupon
_____ is the tax return that includes both federal and state unemployment taxes paid by the employer during the year.
Form 940
the document that reports the accumulated amounts of federal income taxes and FICA taxes withheld from employees' earnings for the quarter is
Form 941
Debit or Credit the total amount of gross earnings is entered on the _______________ side of the salaries expense account.
debit
Debit or Credit when a payment is made to the federal government for the employees federal income tax, an entry is made on the ____________ side of the employees federal income tax payable account.
debit
T or F when a business transfers money from its regular checking account to the payroll checking account, the check is written for the same amount of gross earnings.
false
T or F the amount entered for payroll tax expense is the total gross earnings of the pay period.
false
T or F the cash in bank account is debited for the amount the employees actually earn in the pay period
false
T or F the entry for salaries expense is recorded each pay perks but the entry for payroll tax expense is recorded only at the end of the year.
false
T or F the unemployment tax payable account is used to record both federal and state unemployment taxes.
false
T or F Form W-2 must be prepared and given do each employee by January 31 is the year following that in which the taxes were deducted.
true
T or F amounts deducted from employees' earnings and held for payment by the employer become liabilities to the business.
true
T or F both the employee and the employer pay the same rate for social security and medicare taxes.
true
T or F the cash in bank account is created for the total amount that is paid by the employer to the employees
true
T or F the employer'/ payroll taxes are operating expenses of the business.
true
T or F the employers payroll taxes are operating expenses of the business.
true
T or F the payroll register is the source of information for preparing the journal entry for payroll.
true
_________ are usually paid only by the employer and collected to provide funds for workers who are temporarily out of work.
unemployment taxes
the wage and tax statement that summarizes an employee's earnings and tax deductions for the previous calendar years is called
Form W-2
the transmittal of income and tax statements that is filled by the employer with the Internal Revenue Service is called
Form W-3
T or F amounts withheld from gross earnings and held by the employer until the time of payment are assets of the business.
false
T or F an employer is required to file only an annual tax report on employer earnings and on taxes paid by the employer and the employer.
false
T or F employees' wages are a liability of the business.
false
T or F federal withholding taxes and social security taxes are normally paid once a year by the employer.
false
T or F the only taxes that the employer must pay are unemployment taxes.
false
T or F form W-2 must be prepared and given to each employer by January 31 of the year following that in which the taxes were deducted.
true
T or F social security tax is paid by the employer and the employees.
true
