Name:
Class:
Date:
Indicate whether the statement is true or false.
1. The timing of payroll tax payments is based on the amount owed.
a.
True
b.
False
2. The transaction to record employer payroll taxes expense is journalized at the end of the quarter.
a.
True
b.
False
3. A business deposits the total of gross wages in a separate payroll checking account.
a.
True
b.
False
4. Form W-2 reports an employee’s annual earnings and the withholdings for federal income, social security, and
Medicare taxes.
a.
True
b.
False
5. Some employers must deposit payments for withheld employees’ federal income tax and social security and Medicare
taxes on the next banking day.
a.
True
b.
False
6. Employer payroll taxes are business expenses.
a.
True
b.
False
7. In the journal entry for a payroll, the amount debited to Salary Expense is the total of the Net Pay column of the payroll
register.
a.
True
b.
False
8. Federal unemployment insurance laws require that employers and employees pay taxes for unemployment
compensation.
a.
True
b.
False
9. The payroll register provides all the payroll information needed to prepare a payroll.
a.
True
b.
False
10. Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish
each employee with a quarterly statement.
a.
True
b.
False
Name:
Class:
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11. The employer social security tax rate is different than the employee social security tax rate.
a.
True
b.
False
12. In each pay period, the payroll information for each employee is recorded on his or her employee earnings record.
a.
True
b.
False
13. Each employer is required by law to periodically report the payroll taxes withheld from employee salaries.
a.
True
b.
False
14. The tax base for Medicare tax is the same as the tax base for social security tax.
a.
True
b.
False
15. If 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.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
16. The source document for paying state unemployment tax is
a.
a check.
b.
a receipt.
c.
a memorandum.
d.
none of these.
17. The total earnings subject to federal unemployment tax is referred to as
a.
unemployment taxable earnings.
b.
taxable earnings.
c.
gross earnings.
d.
total earnings.
18. The payment of payroll taxes to the government is referred to as a
a.
tax reimbursement.
b.
transfer payment.
c.
deposit.
d.
tax fulfillment.
19. Until the amounts withheld from employee salaries are paid by the employer, they are recorded as
a.
assets.
b.
liabilities.
c.
salary expense.
d.
revenue.
20. Employers are required to furnish each employee with an annual statement of earnings and withholdings before
a.
December 31 of the current year.
b.
January 1 of the following year.
c.
January 15 of the following year.
d.
January 31 of the following year.
21. In general, employers are required to pay state unemployment taxes
a.
monthly.
b.
during the month following each calendar quarter.
Name:
Class:
Date:
c.
annually.
d.
none of these.
22. Each employer must file a _________ federal tax return showing the federal income tax, social security tax, and
Medicare tax due the government.
a.
monthly
b.
quarterly
c.
yearly
d.
semiannual
23. The source document for paying employee income tax and social security and Medicare tax is
a.
a check.
b.
a receipt.
c.
a memorandum.
d.
none of these.
24. A state tax used to pay benefits to unemployed workers is
a.
social security tax.
b.
Medicare tax.
c.
federal unemployment tax.
d.
state unemployment tax.
Name:
Class:
Date: