Chapter 13 Accounting (True & False)
Terms in this set (20)
The SS tax is paid by both the employer and employees.
The fed. unemployment tax rate is greater than the state unemployment tax rate.
An employer normally pays federal withholding taxes, ss taxes, and medicare taxes once a year.
The payment of the payroll increases the expenses of the business
Employee payroll is a major expense for most companies
The payroll register is the source of information for preparing the journal entry for payroll
Amounts deducted from employees earnings and held for payment by the employer are recorded as expenses in the accounting records
The payroll tax expense account normally has a debit balance
FICA taxes on an employees gross earnings are paid both by the employer and the employee
The amount entered for the payroll tax expense is the total gross earnings for the pay period
Amounts deducted from employees earnings and held for payment by the employer become liabilities to the business
Business often use computers and special software to prepare payroll in an effort to reduce simple mathematical errors and to improve productivity
The hospital insurance premiums payable account normally has a credit balance
In a few states, employees are required to pay unemployment taxes
The entry for salaries expense is recorded each pay period but the entry for payroll tax expense is recorded only at the end of the year
The cash in bank account is debited for the amount the employees actually earn in the pay period
The state unemployment tax payable account normally has a debit balance.
The only taxes that the employer must pay are unemployment taxes
When a business pays its state unemployment taxes, the state unemployment tax payable account is credited
The employees total gross earnings amount is debited to the salaries expense account each pay period
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