Chapter 12 True/False
A payroll ledger is a business from used to record payroll information.
False
A single person will have less income tax withheld than a married employee.
False
All businesses base their salary payments on the same length of time.
False
Federal income tax is withheld from employee earning in all but two states.
False
Federal law requires that each employer have on file a properly completed from W-2, Employee's Withholding Allowance Certificate, to each employeee
False
Medicare is funded by the federal government but not under the social security law.
False
No employees are exempt from having federal income taxes withheld.
False
Social Security tax is paid by the employer only.
False
The first task in preparing a payroll is to determine the number of days worked by each employee.
False
A business may decide to pay employee salaries every week, every two weeks, twice a month, or once a month.
True
A pay period may be weekly.
True
A payroll system must include an accurate record of the time each employee has worked.
True
A separate checking account for payroll checks helps to protect and control payroll payments.
True
All deducations from employee wages are recorded in a payroll register.
True
An act of Congress can change the social security tax base and tax rate at any time.
True
Businesses must withhold federal income tax from employee total earnings.
True
Employee total earnings are calculated as regular hours x regular rate, plus overtime hours x overtime rate.
True
Employers in many states are required to withhold state, city, or county income tax from employee earnings.
True
Payroll taxes are based on employee total earnings.
True
Payroll taxes withheld represent a liability for an employer until payment is made.
True
Payroll time cards can be used as the basic source of information to prepare a payroll.
True
Social security tax is a federal tax paid by employees and employers for old-age, survivors, and disability insurance.
True
Th total amount earned by all employees for a pay period is a payroll.
True
The columns of the employee earnings record consist of the amount columns in a payroll register and an accumulated earnings column.
True
The information used to prepare payroll checks is taken from a payroll register.
True
The marital status and withholding allowances of an employee affect the amount of federal income tax withheld.
True
The money paid for employee services is a salary.
True
The period covered by a salary payment is a pay period
True
Total earning are sometimes referred to as gross pay.
True
When an employee's earnings exceed the tax base, no more social security tax is deducted.
True