Chapter 12 Payroll Accounting
Payroll
a ? is a list of the employees of a business and the payments due to each employee for specific pay period
Wage
a ? is an amount of money paid to an employee at a specific rate per hour worked
True
a business may obtain daily printout on employee work hours by using electronic badge readers
Salary
a fixed amount of money paid to an employee for each pay period is
Time card
a record of the arrival time, departure time, and total number of hours worked each day for an employee is kept on a ?
401k plan
a voluntary deduction that allows employees to defer paying taxes until retirement is called
Commission
an amount paid to an employee based on a percentage of the employee's sale
Deduction
an amount subtracted from an employee's gross earnings
False
an employee's gross earnings may be calculated by any of the four methods, but never by a combination of these methods
Overtime rate
the ? is 1.5 times an employees regular hourly rate of pay and is paid for all hours worked over 40 per work week
Payroll register
the ? is a form that summarizes information about employee's earnings for each pay period
Net pay
the ? is the amount of money left after all deductions are subtracted from the gross earnings paid to an employee
Pay period
the ? is the amount of time for which an employee is paid
False
the amount of taxes withheld from each employee's paycheck is the exact amount that the employee will owe at the end of the tax year
True
the employee payroll is a major expense for most companies
True
the employer acts as a tax collection agent for the federal government
Direct deposit
the employer's deposit of net pay in an employee's personal bank account is known
False
the more withholding allowances a taxpayer claims the higher the amount of income taxes an employer withholds from earnings
True
the payroll register is the source of information or preparing the paychecks
Payroll clerk
the person who is responsible for preparing the payroll
Gross earnings
the total amount earned by an employee in a pay period
Accumulated earnings
the year to do date gross earnings of an employee are called
True
to ensure that taxpayers have the funds to pay their taxes, employers are required to withhold a certain amount of money from employees earnings
True
when a company has only a few employee's paychecks are often written on the company's regular checking account
True
FICA rates are changeable at any time by congress
False
employee's earnings records are kept on a monthly basis to make it easier to complete government reports that are required
True
if an employee qualifies as exempt, he or she may not be required to pay federal or state income taxes in a given year
