Chapter 14 Test Prep

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

• True

• False

Employee withheld income tax, employee social security, and medicare are taxed periodically to the federal government in a combined payment.

• True

• False

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

• True

• False

Employer payroll taxes are business expenses.

• True

• False

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

• True

• False

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

• True

• False

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

• True

• False

All employers must deposit payments for withheld employees' federal income tax and social security using the EFTPS.

• True

• False

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

• True

• False

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

• True

• False