Accounting Chapter 12 Test

What are the two primary sources of information to prepare a payroll check?

• time card

• payroll register

• wage

• tax base

Employers are not required to withhold and deposit the employees' taxes and pay a matching amount of these taxes.

• True

• False

The maximum amount of earnings on which a tax is calculated is called ___

• net pay

• tax base

• commission

• wage

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

• payroll register

• commission

• 401(k)

• withholding allowance

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

• Medicare Tax

• Social Security Tax

• Withholding allowance

A qualified retirement plan sponsored by an employer

• Roth individual retirement account

• Individual retirement account

• 401(k)

• None of the above

The total earnings paid to an employee after payroll taxes and other deductions

• Gross Pay

• Commission

• Salary

• Net Pay

A qualified retirement plan that provides the most individuals with a deferred federal income tax benefit

• Roth individual retirement account

• Qualified retirement plan

• Individual retirement account

• 401(k)

The number of days or weeks of work covered by an employee's paycheck is called a

• salary

• pay period

• net pay

• payroll

A business form used to record details of an employee's earnings and deductions is called a

• individual retirement acccount (IRA)

• wage

• payroll register

• employee earnings record