Accounting 13 T or F – Flashcards
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The employer social security tax rate is different than the employee social security tax rate.
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false
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2. A business deposits the total of gross wages in a separate payroll checking account.
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false
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3. Each employer is required by law to periodically report the payroll taxes withheld from employees salaries.
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true
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4. If an employee's accumulated earnings are $6,500.00, and the employee earns another $1,500, the amount of new earnings subject to unemployment tax is $1,500.00.
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false
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5. Each employer who withholds income tax and social security and Medicare tax from employee earnings must furnish each employee with a quarterly statement.
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false
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6. The payroll register provides all the payroll information needed to prepare a payroll.
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false
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7. Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation.
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false
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8. The tax base for Medicare tax is the same as the tax base for social security tax.
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false
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9. The timing of payment of tax payments is based on the amount owed.
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true
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10. Employer payroll taxes are business expenses.
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true
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11. The transaction to record employer payroll taxes expense is journalized at the end of the quarter.
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false
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12. 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.
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false
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13. Form W-2 reports an employee's annual earnings and the withholdings for federal income, social security, and Medicare taxes.
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true
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14. Some employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes on the next banking day.
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true
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15. In each pay period the payroll information for each employee is recorded on his or her employee earnings record.
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true
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Employers are required to furnish each employee with an annual statement of earnings and withholdings before
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Jan. 31 of the following year
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Each employer must file a_______ federal tax return showing the federal income tax and social security tax, and Medicare tax due the government
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quarterly
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The source document for paying state unemployment tax is
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a check
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Until the amounts withheld from employee salaries are paid by the employer, they are recorded as
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liabilities
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A state tax used to pay benefits to unemployed workers is
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state unemployment tax
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The payment of payroll taxes to the government is referred to as a
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deposit
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The total earnings subject to federal unemployment tax is referred to as
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unemployment taxable earnings
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In general, employers are required to pay state unemployment taxes
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during the month following each calander quarter
