Accounting - Chapter 12

A deduction from total earnings for each person legally supported by a taxpayer, including the employee.

• Payroll taxes

• Withholding allowance

• Social Security tax

• None of the above

A federal tax paid for hospital insurance

• Social Security tax
• Payroll tax
• Medicare tax
• None of the above

A qualified retirement plan that allows tax-free withdrawals from the account

• Roth individual retirement account

• Individual retirement account

• 401(k)

• None of the above

A method of paying an employee based on the amount of sales the employee generates

• Salary

• Commission

• Net pay

• Payroll

A qualified retirement plan sponsored by an employer

• Roth individual retirement account

• Individual retirement account

• 401(k)

• None of the above

The payment of an employee's net pay using electronic funds transfer

• Electronic funds transfer

• Net pay

• Voucher check

• Direct Deposit

The maximum amount of earnings on which a tax is calculated

• Tax base
• Salary
• Total earnings
• Withholding allowance

A federal tax paid for old-age, survivors, and disability insurance

• Medicare tax
• Federal income tax 
• Social security tax
• Tax base

A retirement savings plan approved by the Internal Revenue Service that provides individuals with a tax benefit

• Roth individual retirement account

• Qualified retirement plan

• Individual retirement plan

• 401(k)

A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents

• Direct Deposit

• Electronic funds transfer

• Voucher check

• None of the above