Payroll and Taxation Quiz

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

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

• True

• False

Employer payroll taxes are business expenses.

• True

• False

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

• True

• False

Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation.

• True

• False

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

• True

• False

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

• True

• False

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

• True

• False

Form W-2 reports an employee’s annual earnings and the withholdings for federal income, social security, and Medicare taxes.

• True

• False