Accounting: Chapter 12 Test Review – Flashcards
Flashcard maker : Sara Edwards
salary
the money paid for employee services
pay period
the period covered by a salary payment
payroll
the total amount earned by all employees for a pay period
total earnings
the total pay due for a pay period before deductions
payroll taxes
taxes based on the payroll of a business
withholding allowance
a deduction form total earnings for each person legally supported by a taxpayer, including the employee
social security tax
A federal tax paid for old-age, survivors, and disability insurance
medicare tax
a federal tax paid for hospital insurance
tax base
the maximum amount of earnings on which a tax is calculated
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
employee earnings record
a business form used to record details affecting payments made to an employee
regular hours times regular rate
Employee regular earnings are calculated as:
employee earnings up to a maximum paid in a calendar year
social security tax is calculated on:
provide additional protection and control payroll payments
A separate payroll checking account is used primarily to:
True
True/False: A business may decide to pay employee salaries every week, every two weeks, twice a month, or once a month
True
True/False: Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government
True
True/False: Payroll time cards can be sued as the basic source of information to prepare a payroll
False
True/False: The first task in preparing a payroll is to determine the number of days worked by each employee
False
True/False: Total earnings are sometimes referred to as net pay or net earnings
True
True/False: Employee total earnings are calculated as regular house x regular rate, plus overtime hours x overtime rate
True
True/False: Payroll taxes withheld represent a liability for an employer until payment is made to government
True
True/False: A business is required by law to withhold federal income taxes form employee total earnings
True
True/False: Employers in many states are required to withhold state, city, or county income tax form employee earnings
True
True/False: The amount of income tax withheld from each employee’s total earnings is determined from the number of withholding allowances and by the employee’s marital status
False
True/False: A single person will have less income tax withheld than a married employee
False
True/False: The larger the number of withholding allowances claimed, the larger the amount of income tax withheld
True
True/False: An employee can be exempt form having federal income tax withheld under certain conditions
False
True/False: Social security tax is paid by the employer only
True
True/False: An act of congress can change the social security tax base and tax rate at any time
True
True/False: When an employee’s earnings exceed the tax base, no more social security tax is deducted
True
True/False: All deductions form employee wages are recorded in a payroll register
True
True/False: The columns of the employee earnings record consists of the amount columns in a payroll register and an accumulated earnings column
False
True/False: a new earnings record is prepared for each employee each year
True
True/False: A check for the total net pay is written and deposited in the payroll checking account
True
True/False: The information used to prepare payroll checks is taken forma payroll register
True
True/False: When EFT is used, the employee does not recieve an individual check
