ACC 2 Ch 3 Review

A monthly schedule depositor for federal payroll tax purposes must deposit payroll taxed by the:

• 15th day of the next month

• 15th day of the current month

• last day of the current month

• last day of the next month

Employers make periodic payments to the ___ for all payroll taxes withheld from employees, as well as for employer payroll taxes.

• business

• government

• tax companies

• credit card companies

Employer payroll taxes do NOT include which of the following?

• federal income tax

• social security tax

• Medicare tax

• federal unemployment tax

A withholding allowance deduction ___ the amount of income tax withheld from an employer's earnings.

• reduces

• increases

The only deductions that may be legally made from an employee's pay are those required by the federal, state, or local governments.

• True

• False

If an employer's annual federal unemployment tax liability is greater than ___, the employer makes quarterly payments.

• $100

• $500

• $200

• $1000

In a departmental business, the total earnings are classified by department to provide better cost control.

• True

• False

Depositing payroll checks directly to an employee's checking or savings account is called:

• automatic check deposit

• payroll taxes

• unemployment taxes

• Employee Earnings Record

The total amount earned by all employees for a pay period is called:

• payroll

• unemployment

• deductions

• tax base

One employee earnings record is used each payroll period to detail the earnings of all employees.

• True

• False