Acct Ch 12 & 13 - Payroll

If the payroll register includes ________, it provides all the information needed to journalize payroll and payroll taxes.

• accumulated earnings

• gross earnings for the current pay period

When using a separate payroll checking account, a business deposits the total of _____ into that account each payroll run.

• gross wages

• net pay

Federal unemployment insurance laws require that ____ pay taxes for unemployment compensation.

• employers and employees

• employers only

The transaction to record employer payroll taxes expense is journalized ____.

• at the end of the month following the quarter

• immediately after recording the Salary Expense transaction

Each employer is required by law not only to pay payroll taxes but also to file various forms and reports to various tax/government agencies.

• true
• false

The timing of required payroll tax payments ____.

• is based on the amount owed.

• depends on if you have to collect sales tax.

Which statement in TRUE

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

• There is no tax base for Medicare tax.

When an employee’s earnings exceed the tax base, ____

• no more tax is due from employee or employer

• no more tax is due from the employee ONLY.

The employer social security tax rate is the same as the employee social security tax rate.

• true
• false

A business can choose the pay period for their employees based on their needs (weekly, every two weeks, monthly, etc)

• true
• false