Accounting 2 Chapter 3

Overtime pay is paid for hours worked in excess of eight hours per day for a typical business. The typical overtime rate is $1.00 more than the regular hourly rate.

• True

• False

A business form used to record payroll information is called a payroll register.

• True

• False

A business must provide a yearly report to each employee showing the total salary earned and the total taxes withheld.

• True

• False

The period covered by a salary payment is called a quarterly period.

• True

• False

In a departmental business, the total earnings are classified by department to provide better cost control.

• True

• False

One employee earnings record is used each payroll period to detail the earnings of all employees.

• True

• False

Employers make periodic payments to the government for all payroll taxes withheld from employees, as well as for employer payroll taxes.

• True

• False

Employer payroll taxes include federal income tax, social security tax, Medicare tax, federal unemployment tax, and state unemployment tax.

• True

• False

The only deductions that may be legally made from an employee's pay are those required by the federal, state, or local governments.

• True

• False

A tax base is the lowest amount of earnings on which a tax is calculated.

• True

• False