Chapter 13 True and False

question

Each employer who withholds income tax and social security and Medicare tax from employee salaries must furnish each employee with a quarterly statement.
answer

False
question

Some employers must deposit payments for withheld employees’ federal income tax and social security and Medicare taxes on the next banking day.
answer

True
question

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.
answer

False
question

The tax base for Medicare tax is usually the same as the tax base for social security tax.
answer

False
question

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.
answer

False
question

Federal unemployment tax is usually paid each month.
answer

False
question

The timing of payment of tax payments is based on the amount owed.
answer

True
question

Each employer is required by law to periodically report the payroll taxes withheld from employee salaries.
answer

True
question

The transaction to record employer payroll taxes expense is journalized at the end of the quarter.
answer

False
question

Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation.
answer

False
question

The employer social security tax rate is not the same as the employee social security tax rate.
answer

False
question

Employer payroll taxes are business expenses.
answer

True
question

The source document for payment of a payroll is the time card.
answer

False
question

The payroll register and employee earnings record provide all the payroll information needed to prepare a payroll.
answer

True
question

In each pay period the payroll information for each employee is recorded on each employee earnings record.
answer

True
question

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.
answer

True
question

Employer payroll taxes expense is based on a percentage of employee earnings.
answer

True
question

An employer is not required to pay federal unemployment taxes on an employee who has already earned $7,000.00 during the calendar year.
answer

True
question

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).
answer

False
question

The source document for journalizing employer payroll taxes is a check.
answer

False

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