Chapter 13 Accounting
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The Cash in Bank account is debited for the amount fo the employees actually earn in the pay period.
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false
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The only taxes that the employer must pay are unemployment taxes.
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false
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The amount entered for Payroll Tax Expense is the total gross earnings of the pay period.
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false
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Social security tax is paid by the employer and the employees.
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true
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Amounts deducted from the employees' earnings and held for payment by the employer become liabilities to the business.
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true
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The entry for Salaries Expense is recorded each pay period but the entry for Payroll Tax Expense is recorded only at the end of the year.
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false
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Federal withholding taxes and social security taxes are normally paid once a year by the employer.
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false
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The payroll register is the source of information for preparing the journal entry for payroll.
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true
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Form W-2 must be prepared and given to each employee by January 31 of the year following that in which the taxes were deducted.
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true
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The amount of gross earnings is entered on the ___ side of the Salaries Expense account.
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debit
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The account Employees' Federal Income Tax Payable would normally have a __ balance
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credit
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Salaries Expense would normally have a __ balance
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debit
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The total net pay for the period is entered on the __ side of the Cash in Bank account.
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credit
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The Medicare Tax Payable account would normally have a __ balance.
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credit
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When a payment is made to the state government for the employees' state income tax, an entry is made on the __ side of the Employees' State Income Tax Payable account.
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debit
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The Payroll Tax Expense account normally has a __ balance.
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debit
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A decrease in U.S. Savings Bonds Payable would be a __
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debit
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An increase in State Unemployment Tax Payable would be a ___.
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credit
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The account Insurance Premiums Payable would normally have a ___ balance.
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credit
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The taxes that an employer must pay are FICA taxes and unemployment taxes.
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true
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The Unemployment Tax Payable account is used to record both federal and state unemployment taxes.
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false
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Both the employee and the employer pay the same rate for social security and Medicare taxes.
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true
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Amounts withheld from gross earnings and held by the employer until the time of payment are assets of the business.
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false
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The salary expense of a business is equal to the total gross earnings.
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true
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When a business transfers money from its regular checking account to the payroll checking account the check is written for the amount of gross earnings.
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false
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Employees' wages are a liability of the business.
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false
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The Cash in Bank account is credited for the total amount that is paid by the employer to the employees.
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true
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An employer is required to file only an annual tax report on employee earnings and on taxes paid by the employee and the employer.
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false
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The form that is prepared and sent wuth the employer's check to show the amount of taxes being sent to the federal government is a ___
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federa tax deposit coupon
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The transmittal of income and tax statements that is filed by the employer with the Internal Revenue Service is called__.
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Form W-3
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___ is the tax return that includes both federal and state unemployment taxes paid by the employer during the year.
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Form 940
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The document that reports the accumulated amounts of federal income taxes and FICA taxes withheld from employees' earnings for the quarter is __
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Form 941
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___ are usually paid only by the employer and collected to provide funds for workers who are temporarily out of work
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unemployment taxes
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The wage and tax statement that summarizes an employee's earnings and tax decutions for the previous calendar year is called__.
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Form W-2
