Acct Ch 13 – Flashcards
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The source document for payment of a payroll is the time card.
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False
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Employers must pay to the government the taxes withheld from employee earnings.
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True
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Employers payroll taxes are business expenses.
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True
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Employer payroll taxes expense is based on a percentage of employee earnings.
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True
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The employer social security tax rate is not the same as the employee social security tax rate.
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False
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Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation.
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False
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An employer is not required to pay federal unemployment taxes on an employee who has already earned $7,000.00 during the calender year.
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True
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The source document for journalizing employer payroll taxes is a check.
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False
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Employee withheld income tax, employee social security and Medicare tax, and employer social security and Medicare tax are paid periodically to the federal government in a combined payment.
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True
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The 12-month period that ends on June 30th of the prior year is called the lookback period.
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True
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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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In the journal entry for a payroll, the amount credited to Cash is the total of the Total Earnings column of the payroll register.
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False
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The tax base for Medicare tax is usually the same as the tax base for social security tax.
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False
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If an employee's accumulated earnings are $6,500.00, and the employee earns another $1,500.00, the amount of new earnings subject to unemployment tax is $1,500.00.
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False
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Some employers must deposit payments for withheld employees' federl income tax and social security and Medicare taxes on the next banking day.
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True
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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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The source document for payment of a payroll is ________.
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a check
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The entry to journalize paying a semimonthly payroll less deductions for employee income tax, social security and Medicare tax, and U.S. Savings Bonds is a credit to Cash and liability accounts and a debit to ___________.
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Salary Expense
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Employers must pay payroll taxes for _______.
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social security and Medicare, federal unemployment, and state unemployment, and state unemployment taxes
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Social security and Medicare taxes are paid by __________.
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employers and employees
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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 the entry to journalize employer payroll taxes expenses for a semimonthly period, the account debited would be ________.
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Payroll tax Expense
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The report that shows total year's earnings and amounts withheld for taxes for an employee is prepared on form __________.
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W-2
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Employers are required to furnish each employee an annual statement of earnings and withholding before ___________.
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January 31 of the following year
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The source document for paying employee income tax and social security and Medicare tax is __________.
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a check
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In the entry to journalize paying the liability for the first quarter federal unemployment tax, the account credited would be __________.
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Cash
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The source document for paying state unemployment tax is __________.
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a check
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The total of the Net Pay column of the payroll register is credited to ________.
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an asset account
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When a semimonthly payroll is paid, the credit to Cash is equal to the _________.
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net pay of all employees
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A federal tax used for state and federal administrative expenses of the unemployment program is _________.
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federal unemployment tax
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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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To record the employer payroll taxes expense, the following accounts are credited:
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Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax
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To record the total federal tax payment for employee income tax, social security tax and Medicare tax, the account credited is __________.
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Cash
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To record the payment of federal unemployment tax, the account debited is __________.
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a liability account
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The Total Earnings column total is journalized as a debit to _________.
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Salary Expense
