CHAPTER 12 - M/C

All employees must report their withholding allowances on a

• PAYROLL

• MEMO

• W4

• W2

Each employee name is listed in a payroll register along with

• EMPLOYEE NUMBER

• MARITAL STATUS

• WITHHOLDING ALLOWANCES

• ALL OF THESE

Employee regular earnings are calculated as

• regular hours times regular rate.

• total hours divided by regular rate.

• total hours plus overtime rate.

• overtime hours minus overtime rate.

Federal income tax is withheld from employee earnings

• only in those states electing to do so.

• in all states with over 10,000,000 population.

• only in states where a state income tax is levied.

• in all states

The Accumulated Earnings column of the employee earnings record

• shows net pay for the year

• is the total earnings since the first of the year

• shows net pay for one quarter

• is the gross earnings for one quarter

The amount on the employee earnings record used to determine if certain payroll taxes 6. b

apply to an employee’s earnings is

• net pay

• accumulated earnings

• gross earnings

• social security taxes

The social security tax is calculated by

• multiplying total earnings by the tax rate.

• multiplying net earnings by the tax rate.

• using a tax table

• none of these

The withholding allowances of an employee affect

• social security tax withheld

• federal income tax withheld

• federal unemployment tax owed.

• state unemployment tax owed.

Some businesses deposit employee net pay directly to each employee bank account by using

• payroll checks

• payroll registers

• EFT

• none of these