Chapter 13 Accounting Review (11e)

Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with a quarterly statement.

• True

• False

If the tax base for calculating unemployment taxes is $7,000 and an employee’s accumulated earnings are $6,500.00, and the employee earns another $1,500.00, the amount of new earnings subject to unemployment tax is $1,500.00.

• True

• False

In the journal entry for a payroll, the amount debited to Salary Expense is the total of the Net Pay column of the payroll register.

• True

• False

The timing of payroll tax payments is based on the amount owed.

• True

• False

The transaction to record employer payroll taxes expense is journalized at the end of the quarter.

• True

• False

The employer social security tax rate is different than the employee social security tax rate.

• True

• False

A business deposits the total of gross wages in a separate payroll checking account.

• True

• False

In each pay period, the payroll information for each employee is recorded on his or her employee earnings record.

• True

• False

The payroll register provides all the payroll information needed to prepare a payroll.

• True

• False

Employer payroll taxes are business expenses.

• True

• False