14 terms

Accounting Chapter 12 Test Review

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Salary
The money paid for employee services - also called wages
Pay Period
The time covered by a salary payment. (biweekly, semi-monthly, monthly).
Payroll
The total amount earned by all employees for a pay period.
Total Earnings
Gross Pay - the total pay due for a pay period before deductions.
Payroll Taxes
Taxes based on the payroll of a business
Employee Income Tax
Federal income tax withheld from all employee earnings. These must be forwarded to the federal government.
Withholding Allowance
A deduction from total earnings for each person supported by a taxpayer, including the employee.
Social Security Tax
A federal tax paid for old-age, survivors, and disability. (6.2%)
Medicare Tax
A federal tax paid for hospital insurance. (1.45%)
Tax Base
The maximum amount of earnings on which a tax is calculated up to a mazimum of 87,000.00 in each calendar year.
Payroll Register
A business form used to record payroll information.
Net Pay
The total earnings paid to an employee after payroll taxes and other deductions.
Gross Pay - Deductions = _____________________
Net Pay
Employee Earnings Record
A business form used to record details affecting payments made to an employee.