Accounting - Chapter 12

Front

Do businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government?

Back

True

Front

Qualified retirement plans are approved by an act of Congress.

Back

False

Front

The first task in preparing a payroll is to determine the number of days worked by each employee.

Back

False

Front

Total earnings are sometimes referred to as net pay.

Back

False

Front

Payroll taxes withheld represent a liability for an employer until payment is made.

Back

True

Front

When an employee’s earnings exceed the tax base, no more social security tax is deducted.

Back

True

Front

The amount of income tax withheld from each employee’s total earnings is determined solely from the number of withholding allowances.

Back

False

Front

Is the investment income in a Roth IRA subject to federal income taxes when withdrawn?

Back

No, it is not subject to federal income taxes when withdrawn.

Front

A business is required by law to withhold certain payroll taxes from employee salaries.

Back

True

Front

A single person will have more income tax withheld than a married employee.

Back

True