WorksheetsChapter 12: Preparing Payroll Records
Total questions: 15
Worksheet time: 9mins
Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government.
True
False
The amount of income tax withheld from each employee's total earnings is determined solely from the number of withholding allowances.
True
False
A business is required by law to withhold certain payroll taxes from employee salaries.
True
False
Individual payroll checks are usually written on a(n)
company's regular checking account
separate payroll checking account
special purposes account
employee earnings account
The amount on the employee earnings record used to determine if certain payroll taxes apply to an employee's earnings is
net pay
gross earnings
social security taxes
accumulated earnings
Payroll taxes are based on
employer total earnings
employee total earnings
employee net pay
employee accumulated earnings
The information used to prepare payroll checks is taken from the
employee earnings record
journal
payroll register
general ledger
Which tax(es) are subjected to a tax base?
Federal Income Tax
Social Security Tax
Medicare Tax
Retirement fund contributions
Social security tax is calculated by
multiplying net pay by the tax rate
multiplying total earnings by the tax rate
multiplying accumulated earnings by the tax rate
using a tax table
Federal income tax laws are written and passed by
the President of the United States
the Department of Treasury
Congress
the Internal Revenue Service
___ sets the tax base and the tax rates for the social security tax.
Congress
the President of the United States
the Department of the Treasury
the Internal Revenue Service
The total of the total earnings column of the payroll register is deposited into a separate payroll checking account to write checks to employees.
True
False
The voucher portion of a voucher check is usually referred to as the
voucher statement
check
check stub
voucher stub
(a) would be an example of a qualified retirement plan.
Name one source used to complete the payroll register.
(a)
