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WorksheetsAccounting - Chapter 12
Total questions: 21
Worksheet time: 11mins
Name
Class
Date
1.
Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government.
a)
True
b)
False
2.
Qualified retirement plans are approved by an act of Congress.
a)
True
b)
False
3.
The first task in preparing a payroll is to determine the number of days worked by each employee.
a)
True
b)
False
4.
Total earnings are sometimes referred to as net pay.
a)
True
b)
False
5.
Payroll taxes withheld represent a liability for an employer until payment is made.
a)
True
b)
False
6.
When an employee’s earnings exceed the tax base, no more social security tax is deducted.
a)
True
b)
False
7.
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
8.
The investment income in a Roth IRA is not subject to federal income taxes when withdrawn.
a)
True
b)
False
9.
A business is required by law to withhold certain payroll taxes from employee salaries.
a)
True
b)
False
10.
A single person will have more income tax withheld than a married employee.
a)
True
b)
False
11.
Social security tax is paid by both employees and employers.
a)
True
b)
False
12.
Employee regular earnings are calculated as.
a)
a. regular hours times regular rate.
b)
b. total hours divided by regular rate
c)
c. total hours plus overtime rate.
d)
d. overtime hours minus overtime rate.
13.
The larger the number of withholding allowances claimed, the larger the amount of income tax withheld.
a)
True
b)
False
14.
A business form used to record details affecting payments made to an employee is a(n)
a)
a. employee earnings record.
b)
b. payroll journal
c)
c. employee accounts payable record
d)
d. tax withholding form.
15.
The Accumulated Earnings column of the employee earnings record
a)
a. shows net pay for the year.
b)
b. is the total earnings since the first of the year
c)
c. shows net pay for one quarter
d)
d. is the gross earnings for one quarter.
16.
Each employee name is listed in a payroll register along with
a)
a. employee number.
b)
b. marital status
c)
c. withholding allowances.
d)
d. all of these.
17.
The total earnings paid to an employee after payroll taxes and other deductions is recorded in the payroll register’s
a)
a. Gross Pay column.
b)
b. Total Earnings column.
c)
c. Net Pay column.
d)
d. Total Deductions column.
18.
Individual payroll checks are usually written on a(n)
a)
a. company’s regular checking account.
b)
b. separate payroll checking account.
c)
c. special purposes account.
d)
d. employee earnings account.
19.
Federal income tax is withheld from employee earnings
a)
a. only in those states electing to do so.
b)
b. in states without a state income tax.
c)
c. only in states where a state income tax is levied.
d)
d. in all 50 states.
20.
The withholding allowances of an employee affect
a)
a. social security tax withheld.
b)
b. federal income tax withheld
c)
c. federal unemployment tax owed.
d)
d. state unemployment tax owed.
21.
The amount on the employee earnings record used to determine if certain payroll taxes apply to an employee’s earnings is
a)
a. net pay.
b)
b. accumulated earnings.
c)
c. gross earnings.
d)
d. social security taxes.
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