Accounting Chapter 12 &13

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Terms in this set (...)

The total amount earned by all employees during a pay period
payroll
taxes based on the payroll of a business
payroll taxes
The money paid for employee services
salary
A business form used to record details affecting payments made to the employees
employee earnings record
A federal tax made for hospital insurance
Medicare tax
The maximum amount of earnings in which a tax is calculated
tax base
A business form to record payroll information
Payroll register
The period covered by a salary payment
Pay period
The total earnings paid to an employee after payroll and tax deductions
net pay
a deduction from the total earnings for each person leagally supported by the taxpayer, including the employee
witholding allowance
A federal tax paid for old-age, survivors, and disability insurance
social security tax
the total pay due for a pay period before deductions
total earnings
a single person will have less income tax withheld than a married employee
false
all deductions from employee wages are recorded in a payroll register
true
employee total earnings are calculate as regular hours times regular rate, plus over time hours times overtime rate
true
payroll taxes are based on employee total earnings
true
businesses must withhold federal income tax from employee total earnings
true
payroll taxes withheld represent a liability for an employer until payment is made
true
social security tax is paid by the employer only
false
the amount of income tax withhled form each employee's total earnings is determinde from the number of withholding allowances and by the employee's marital status
true
the first task is preparing a payroll is to determine the number of days worked by each employee
false
the information used to prepare payroll checks is taken from a payroll register
true
when an employee's earnings exceed the tax base, no more medicare tax is deducted
false
a seperate checking account for payroll checks helps to protect and controll payroll payments
true
all employees must report their withholding allowances on a
form w-4
each employee name i listed in a payroll register along with
all of these
employee regular earnings are calculated as
regular hours times regular rate
federal income tax is withheld from employee earnings
in all fifty states
the accumulated earings column of the employee earnings record
is the total earings since the first of the year
the amount of the employee earnings record used to determine if certain payroll taxes apply to an employee's earnings is
accumualted earnings
the social security tax is calculated by
multiplying total earnings by the tax rate
the withholdings allowances of an employee affect
federal income tax withheld
some businesses deposit net pay directly to each employee bank account by using
EFT
the source document for payment of a payroll is the time card
false
employee withheld income tax, employee social securit and medicare tax, and employer social security and medicare tax are paid periodically to the federal government in a combined payment
true
some employers must deposit payments for withhled employees' federal income tax and social security and medicare taxes on the next banking day
true
employer payroll taxws are business expenses
true
the employer social security tax rate is not the same as the employee social security tax rate
false
an employer is not required to pay federal unemployment taxes on an employee who has already earned 7,000 durng the calender year
true
all employers must deposit payments for withheld employee's federal income tax and social security and medicare taxes using the electronic federal tax payment system (EFTPS)
false
the source document for jounalizing employer payroll taxes withheld from employee salaries
true
the payroll register and employee earnings records provide all the payroll information needed to prepare a payroll
true
each employer who withholds income tax and social security and medicare tax from employee salaries must furnish each employee with a quarterly statment
false
in the journal entry for a payroll, the amount debited to salary expense is the total of the net pay column of the payroll register
false
if an employee's accumualted earnings are 6,500 and the employee earns another 1,500, the amount of new earings subject to unemployment tax is 1500
false
the transaction to record employer payroll taxes expense is journalized at the end of the quarter
false
employers mst pay paroll taxes for
social security and mesicare, federal unemployment, and state unemployment taxes
employers are required to furnish eache employee with an actual statement of earings and withholdings before
January 31st of the following year
in the entry to journalize paying the liability for the first quarter federal unemployment tax, the account credited would be
cash
the source document for paying state unemployment tax is a
check
when a semimonthly payroll is paid, the credit to cash is equal to the
net pay of all employees
the total of the Federal Income tax column of a payroll register is credited to
a liability account
a federal tax used for state and federal administrative expenses of the undemployment program is
federal unemployment tax
the source document for payment of a payroll is a
check
to record the employer payroll taxes expense, the following accounts are credited
social sexurity tax payable, mediacare tax payab;e,unemployment tax payable federal and state
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