Accounting 1 Chapter 13

Front 1

the money paid for employee services

Back 1

salary

Front 2

the period covered by a salary payment

Back 2

pay period

Front 3

the total amount earned by all employees for a pay period

Back 3

payroll

Front 4

the total pay due for a pay period before deductions

Back 4

total earnings

Front 5

taxes based on the payroll of a business

Back 5

payroll taxes

Front 6

a deduction from total earnings for each person legally supported by a taxpayer, including the employee

Back 6

withholding allowance

Front 7

a federal tax paid for old-age, survivors, and disability insurance

Back 7

social security tax

Front 8

a federal tax paid for hospital insurance

Back 8

Medicare tax

Front 9

the maximum amount of earnings on which a tax is calculated

Back 9

tax base

Front 10

a business form used to record payroll information

Back 10

payroll register

Front 11

the total earnings paid to an employee after payroll taxes and other deductions

Back 11

net pay

Front 12

a business form used to record details affecting payments made to an employee

Back 12

employee earnings record

Front 13

(T/F) A business may decide to pay employee salaries every week, every two weeks, twice a month, or once a month

Back 13

true

Front 14

(T/F) Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government

Back 14

True

Front 15

(T/F) Payroll time cards can be used as the basic source of information to prepare a payroll

Back 15

true

Front 16

(T/F) The first task in preparing a payroll is to determine the number of days worked by each employee

Back 16

false

Front 17

(T/F) total earnings are sometimes referred to as net pay or net earnings

Back 17

false

Front 18

(T/F) employee total earnings are calculated as regular hours x regular rate, plus overtimes hours x overtime rate.

Back 18

true

Front 19

(true payroll taxes are based on employee total earnings

Back 19

true

Front 20

(T/F) a business is required by law to withhold certain payroll taxes from employee salaries

Back 20

true

Front 21

(T/F) employers in many states are required to withhold state, city, or county income tax form employee earnings

Back 21

true

Front 22

(T/F) payroll taxes withheld represent a liability for an employer until payment is made

Back 22

true

Front 23

(T/F) Federal law requires that each employer have on file a properly completed From W-2, Employee's Withholding Allowance Certificate, for each employee

Back 23

false

Front 24

(T/F) the amount of income tax withheld from each employyee's total earnings is determined from the number of withholding allowances and by the employee's marital status

Back 24

true

Front 25

(T/F) a single person will have less income tax withheld than a married employee

Back 25

false

Front 26

(T/F) an employee can be exempt from having federal income tax withheld under certain conditions

Back 26

true

Front 27

(T/F) social security tax is paid by the employer only

Back 27

false

Front 28

(T/F) an act of Congress can change the social security tax base and tax rate at any time

Back 28

true

Front 29

(T/F) when an employee's earnings exceed the tax base, no more social security tax is deducted

Back 29

true

Front 30

(T/F) all deductions from employee wages are recorded in a payroll register

Back 30

true

Front 31

(T/F) the columns of the employee earnings record consist of the amount columns in a payroll register and an accumulated earnings column

Back 31

true

Front 32

(T/F) the information used to prepare payroll checks is taken from a payroll register

Back 32

true

Front 33

how many hours were worked by an employee who arrived at 8:10 a.m. and departed at 12:10 p.m.?

Back 33

4 hours

Front 34

How many hours were worked by an employee who arrived at 7:05 a.m. and departed at 6:05 p.m. with one hour off for lunch?

Back 34

10 hours

Front 35

Employee regular earnings are calculated as...

Back 35

regular hours times regular rate

Front 36

information needed to determine the employee social security tas withholding for a pay period includes...

Back 36

total earnings, accumulated earnings, and social security tax rate and tax base.

Front 37

a separate payroll checking accoount is used primarily to...

Back 37

provide additional protection and control of individual payroll checks