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Accounting - Chapter 12

Total questions: 33

Worksheet time: 17mins

Name
Class
Date
1.

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

a)

Payroll taxes

b)

Withholding allowance

c)

Social Security tax

d)

None of the above

2.
A federal tax paid for hospital insurance
a)
Social Security tax
b)
Payroll tax
c)
Medicare tax
d)
None of the above
3.

A qualified retirement plan that allows tax-free withdrawals from the account

a)

Roth individual retirement account

b)

Individual retirement account

c)

401(k)

d)

None of the above

4.

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

a)

Salary

b)

Commission

c)

Net pay

d)

Payroll

5.

A qualified retirement plan sponsored by an employer

a)

Roth individual retirement account

b)

Individual retirement account

c)

401(k)

d)

None of the above

6.

The payment of an employee's net pay using electronic funds transfer

a)

Electronic funds transfer

b)

Net pay

c)

Voucher check

d)

Direct Deposit

7.
The maximum amount of earnings on which a tax is calculated
a)
Tax base
b)
Salary
c)
Total earnings
d)
Withholding allowance
8.
A federal tax paid for old-age, survivors, and disability insurance
a)
Medicare tax
b)
Federal income tax 
c)
Social security tax
d)
Tax base
9.

A retirement savings plan approved by the Internal Revenue Service that provides individuals with a tax benefit

a)

Roth individual retirement account

b)

Qualified retirement plan

c)

Individual retirement plan

d)

401(k)

10.

A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents

a)

Direct Deposit

b)

Electronic funds transfer

c)

Voucher check

d)

None of the above

11.

A single person will have more income tax withheld than a married employee

a)

True

b)

False

12.
The first task in preparing a payroll is to determine the number of days worked by each employee
a)
True
b)
False
13.

Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government

a)

True

b)

False

14.
Payroll taxes withheld represent a liability for an employer until payment is made
a)
True
b)
False
15.

Social security tax is paid by both employees and employers

a)

True

b)

False

16.

Qualified retirement plans are approved by an act of Congress

a)

True

b)

False

17.

Total earnings are sometimes referred to as net pay

a)

True

b)

False

18.

The investment income in a Roth IRA is not subject to federal income taxes when withdrawn

a)

True

b)

False

19.

When an employee's earnings exceed the tax base, no more social security tax is deducted

a)

True

b)

False

20.

A business is required by law to withhold certain payroll taxes from employee salaries

a)

True

b)

False

21.

The larger the number of withholding allowances claimed, the larger the amount of income tax withheld

a)

True

b)

False

22.

The amount of income tax withheld from each employee's total earnings is determined solely from the number of withholding allowances

a)

True

b)

False

23.

The total earnings paid to an empoyee after payroll taxes and other deductions is recorded in the payroll register's

a)

Total Earnings column

b)

Net Pay column

c)

Total Deductions column

d)

Gross Pay column

24.

A business form used to record details affecting payments made to an employee is a(n)

a)

Tax withholding form

b)

Employee earnings record

c)

Payroll journal

d)

Employee accounts payable record

25.

The Accumulated Earnings column of the employee earnings record

a)

Shows net pay for the year

b)

Is the total earnings since the first of the year

c)

Shows net pay for one quarter

d)

Is the gross earnings for one quarter

26.

Each employee name is listed in a payroll register along with

a)

Employee number

b)

Martial status

c)

Withholding allowances

d)

All of these

27.

Employee regular earnings are calculated as

a)

Regular hours times regular rate

b)

Total hours divided by regular rate

c)

Total hours plus overtime rate

d)

Overtime hours minus overtime rate

28.
The amount of the employee earnings record used to determine if certain payroll taxes apply to an employee's earning is 
a)
Net pay
b)
Accumulated earnings
c)
Gross earnings
d)
Social security taxes
29.

Individual payroll checks are usually written on a(n)

a)

Special purposes account

b)

Company's regular checking account

c)

Separate payroll checking account

d)

Employee earnings account

30.

Federal income tax is withheld from employee earnings

a)

In all 50 states

b)

Only in those states electing to do so

c)

In states without a state income tax

d)

Only in states where a state income tax is levied

31.

The withholding allowances of an employee affect

a)

Federal Unemployment tax owed

b)

Social Security tax withheld

c)

State Unemployment tax owed

d)

Federal Income tax withheld

32.

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

a)

Gross Pay

b)

Commission

c)

Salary

d)

Net Pay

33.

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

a)

Roth individual retirement account

b)

Qualified retirement plan

c)

Individual retirement account

d)

401(k)