Chapter 13 True and False – Flashcards
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Each employer who withholds income tax and social security and Medicare tax from employee salaries must furnish each employee with a quarterly statement.
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False
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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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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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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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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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Federal unemployment tax is usually paid each month.
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False
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The timing of payment of tax payments is based on the amount owed.
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True
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Each employer is required by law to periodically report the payroll taxes withheld from employee salaries.
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True
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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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Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation.
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False
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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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Employer payroll taxes are business expenses.
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True
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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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The payroll register and employee earnings record provide all the payroll information needed to prepare a payroll.
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True
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In each pay period the payroll information for each employee is recorded on each employee earnings record.
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True
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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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Employer payroll taxes expense is based on a percentage of employee earnings.
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True
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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 calendar year.
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True
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All employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes using the Electronic Federal Tax Payment System (EFTPS).
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False
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The source document for journalizing employer payroll taxes is a check.
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False
