Accounting Ch. 12
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Created by:
FluFluFluffy on June 19, 2011
Subjects:
accounting, chapter 12, century 21
Description:
Key Points from Chapter 12 of the Century 21 South-Western Accounting (8E) book.
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24 terms
Terms | Definitions |
|---|---|
 Salary | the money paid for employee services |
| Pay Period | the period covered by a salary payment |
| Payroll | the total amount earned by all employees for a pay period |
| Total Earnings | the total pay due for a pay period before deductions |
| Payroll Taxes | taxes based on the payroll of a business |
| Withholding Allowance | a deduction from total earnings for each person legally supported by a taxpayer, including the employee |
| Social Security Tax | a federal tax paid for old-age, survivors, and disability insurance |
| Medicare Tax | a federal tax paid for hospital insurance |
| Tax Base | the maximum amount of earnings on which a tax is calculated |
| Payroll Register | a business form used to record payroll information |
| Employee Earnings Record | a business form used to record details affecting payments to an employee |
| A Pay Period May Be | every week, every two weeks, twice a month, or once a month |
| Payroll is reduced by | state and federal taxes and other deductions, such as health insurance |
| Round Arrival and Departure Times to | nearest quarter hour |
| All Payroll Taxes Are Based On | employee total earnings |
| Payroll taxes withheld represent a | liability for the employer until payment is made to the government |
| Form W-4 | Employee's Withholding Allowance Certificate [required for all employees] |
| Amount of Income Tax Withheld is Based On | marital status and number of withholding allowances |
| Exemption from Withholding is available for | low-income and part-time employees |
| Cannot claim Exemption if | 1. income exceeds $750, includes more than $250 of unearned income 2. claimed as dependent by another person |
| Amount Withheld is determined by | withholding tables by Internal Revenue Service |
| Medicare - Tax Base | none |
| Accumulated Earnings | add total earnings, not net pay |
| Separate checking account for payroll checks | helps to protect and control payroll payments |
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