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Worksheets

Acct Ch 12 & 13 - Payroll

Total questions: 37

Worksheet time: 19mins

Name
Class
Date
1.

If the payroll register includes ________, it provides all the information needed to journalize payroll and payroll taxes.

a)

accumulated earnings

b)

gross earnings for the current pay period

2.

When using a separate payroll checking account, a business deposits the total of _____ into that account each payroll run.

a)

gross wages

b)

net pay

3.

Federal unemployment insurance laws require that ____ pay taxes for unemployment compensation.

a)

employers and employees

b)

employers only

4.

The transaction to record employer payroll taxes expense is journalized ____.

a)

at the end of the month following the quarter

b)

immediately after recording the Salary Expense transaction

5.
Each employer is required by law not only to pay payroll taxes but also to file various forms and reports to various tax/government agencies.
a)
true
b)
false
6.

The timing of required payroll tax payments ____.

a)

is based on the amount owed.

b)

depends on if you have to collect sales tax.

7.

Which statement in TRUE

a)

The tax base for Medicare tax is the same as the tax base for social security tax.

b)

There is no tax base for Medicare tax.

8.

When an employee’s earnings exceed the tax base, ____

a)

no more tax is due from employee or employer

b)

no more tax is due from the employee ONLY.

9.

The employer social security tax rate is the same as the employee social security tax rate.

a)
true
b)
false
10.
A business can choose the pay period for their employees based on their needs (weekly, every two weeks, monthly, etc)
a)
true
b)
false
11.

Amounts withheld from employee salaries for reasons other than taxes, (ex: Health insurance, retirement contributions, etc.) are ____ for the business

a)

expenses

b)

Liabilities

12.

Payroll taxes (Income tax, SS tax, Medicare tax, etc.) withheld from employees’ earnings are recorded as

a)

expenses

b)

liabilities

13.

Taxes an employer must pay on their P/R (Employer payroll taxes) are

a)

expenses

b)

liabilities

14.

Each employer must file a ________ federal tax return (Form 941) showing the federal income tax, social security tax, and Medicare tax due the government

a)

monthly

b)

quarterly

15.

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

a)

$ 1500

b)

$ 500

16.

In general, most employers are required to submit payment (tax deposit) for Employee Income Tax, SS Tax, and Medicare Tax by the ____ following the payroll date

a)

15th of the month

b)

end of the month

17.

In general, most employers are required to submit payment of unemployment taxes by the ______ following the payroll date

a)

monthly

b)

quarterly

18.

In the journal entry to record payment of FUTA tax ...

a)

Dr: FUTA liability

b)

Cr: FUTA liability

19.

In the journal entry to record employer payroll taxes ...

a)

Dr: Payroll Tax Expense

b)

Cr: Payroll Tax Expense

20.

_____ is/are subject to a tax base

a)

Social Security and Medicare tax

b)

Social Security tax only

21.

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

a)

Net Pay

b)

Total earnings

22.

In the journal entry for a payroll, the amount credited to Cash is the amount of the _____.

a)

Net pay

b)

Total Earnings

23.

In the journal entry for a payroll, the monies withheld from employees’ earnings are recorded as ____

a)

Cash

b)

Liabilities

24.
For a monthly schedule depositor, Employee Income tax, SS Tax, and Medicare tax for the payroll paid on 11/7/18, was due to be paid by 11/15/18
a)

11/15/18

b)

12/15/18

25.

FUTA and SUTA tax for a 11/7/18 payroll was due to be paid by 12/31/18

a)

12/31/18

b)

1/31/19

26.

Social Security Tax is paid by ...

a)

employee

b)

employer

c)

both

d)

neither

27.

Medicare Tax is paid by ...

a)

employee

b)

employer

c)

both

d)

neither

28.

Income tax on Employee Earnings is paid by ...

a)

employee

b)

employer

c)

both

d)

neither

29.

FUTA is paid by ...

a)

employee

b)

employer

c)

both

d)

neither

30.

SUTA is paid by ...

a)

employee

b)

employer

c)

both

d)

neither

31.

(vocab) The payment of payroll taxes to the government is referred to as a ____

a)

tax reimbursement

b)

tax deposit

32.

(vocab) The total earnings subject to federal unemployment tax is referred to as ____

a)

unemployment taxable earnings

b)

accumulated earnings

33.

(vocab) The total amount an employee has earned from the beginning of the year to a given date is referred to as ____

a)

gross earnings

b)

accumulated earnings

34.

(vocab) An accounting form that summarizes the earnings, deductions, and net pay for each employee for one pay period is called a __

a)

W2

b)

payroll register

35.

(vocab) Employee Income tax, SS Tax, and Medicare taxes are known as ____

a)

941 taxes or FICA taxes

b)

unemployment taxes

36.
Payroll taxes withheld represent a liability for an employer until payment is made.
a)
True
b)
False
37.

What is the difference in Gross Pay and Net Pay

a)

Gross pay describes your pay after deductions; net pay is before.

b)

Gross and net pay are the same.

c)

Net pay describes your pay after deductions; gross pay is before.

d)

Gross pay describes when you do not get paid enough; net pay is the amount of your check