Qualified retirement plans are approved by an act of Congress.

The first task in preparing a payroll is to determine the number of days worked by each employee.

Total earnings are sometimes referred to as net pay.

Payroll taxes withheld represent a liability for an employer until payment is made.

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

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

The investment income in a Roth IRA is not subject to federal income taxes when withdrawn.

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

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

Social security tax is paid by both employees and employers.

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

Employee regular earnings are calculated as

The Accumulated Earnings column of the employee earnings record

Each employee name is listed in a payroll register along with

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

recorded in the payroll register’s

Individual payroll checks are usually written on a(n)

Federal income tax is withheld from employee earnings

The withholding allowances of an employee affect

The amount on the employee earnings record used to determine if certain payroll taxes

apply to an employee’s earnings is

A federal tax paid for hospital insurance.

A qualified retirement plan that provides most individuals

with a deferred federal income tax benefit.

A qualified retirement plan that allows tax-free withdrawals

from the account.

A computerized cash payments system that transfers funds

without the use of checks, currency, or other paper

documents.

A retirement plan approved by the IRS is called:

The maximum amount of gross earnings on which a tax is calculated:

A qualified retirement plan sponsored by an employer is called:

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

A qualified retirement plan that provides most individuals with a deferred federal income tax benefit is called:

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

To find the accumulated earnings, you add the ___________ to the previous accumulated earnings amount.

In each pay period, the payroll information for each employee is recorded on his or her employee earnings record.

The payroll register provides all the payroll information needed to prepare a payroll.

Employer payroll taxes are business expenses.

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

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

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

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

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

Form W-4 reports an employee’s annual earnings and the withholdings for federal income, social security, and Medicare taxes.

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

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

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

Some employers must deposit payments for withheld employees’ federal income tax and social security and Medicare taxes on the next banking day.

Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with a quarterly statement.

Until the amounts withheld from employee salaries are paid by the employer, they are recorded as

The payment of payroll taxes to the government is referred to as a

The total earnings subject to federal unemployment tax is referred to as

Each employer must file a _________ federal tax return showing the federal income tax, social security tax, and Medicare tax due the government.

Employers are required to furnish each employee with an annual statement of earnings and withholdings before

The source document for paying employee income tax and social security and Medicare tax is

In general, employers are required to pay state unemployment taxes

The source document for paying state unemployment tax is

A state tax used to pay benefits to unemployed workers is

Which tax provides for medical benefits?

Net pay:

The Social Security tax rate is:

Employees send their payroll taxes directly to the federal government.

Employers use which form to compute the amount of federal income tax to withhold?

Gross pay is the amount of pay the employee takes home.

Who completes Form W-4?

The Medicare tax rate is:

The Wage and Tax Statement is also known as:

Which of the following is not reported on From W-2?