True/False Accounting Chapter 3

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Both employers and employees are required to pay a federal unemply. tax.

False

Employees are paid two times the regular rate for overtime hours.

False

Employers pay government agencies all payroll taxes withheld from employee salaries on an annual basis.

False

In proving a payroll register's accuracy, the total of the Net Pay column is subtracted from the Total Deductions column.

False

Like S.S. , Medicare has a tax base

False

One payroll system is used by all employers in U.S.

False

The amount of federal income tax to be withheld is determined solely by the number of withholding allowances.

False

Federal, state, and local laws require employers to keep records of the payroll information and other payments related to employee services.

True

IF a business is classified as a monthly schedule depositor the business bust pay the total amount due by the 15th day of the following month.

True

Income and two FICA Taxes are the federal taxes deducted from earnings of each employee

True

Laws for handling state, city, and county taxes vary.

True

Other deductions from employee earnings include Heath Ins., Life Ins., pension plans, and savings deposits.

True

Payroll records must show an employee's earnings, amounts withheld, net amount paid, and the total amount of payroll taxes that a business must pay.

True

The frequency of payments for federal, state, and local government taxes is determined by the amount of tax paid each year.

True

Transferring payroll amounts electronically from the employer's account to the employee's bank account is known as electronic funds transfer.

True

Unemployment Taxes are used to pay qualified workers cash benefits for limited periods of unemployment.

True

After a biweekly payroll register has been completed, a check for the total earnings indicated on the payroll register is written for each employee.

False

All time worked in excess of 40 hours in any one week is considered overtime.

True

An employee's total earnings and deductions for the quarter are summarized on one line of the employee earnings record.

True

Businesses that paid more than $50,000 in taxes during the previous four quarter are classified as semiweekly schedule depositors.

True

Businesses with a quarterly federal unemployment tax of more than $500 must make quarterly payments in the month following the end of the quarter.

True

By January 31, businesses must report to employees the earning and amounts withheld for the previous calendar year.

True

Commissions, cost-of-living adjustments, a share of profits, an a bonus are included in an employee's earnings.

True

Congress sets the tax base and the tax rates for S.S. tax

True

Employers are required by law to withhold certain payroll taxes from employee salaries each pay period.

True


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