Payroll Accounting

Federal Income Tax is withheld from employee earnings in all 50 states.

• True
• False

The document that records all employees total earnings as well as total deductions is the

• Payroll Register
• Employee Earnings Record
• Payroll Tax Record
• Gross Pay Calculator

An employees earnings after all taxes and optional deductions are taken out is called

• Gross pay
• Net Pay
• Total Earnings
• Total deductions

The form used to record an individual employees total earnings and total deductions is called the

• Payroll register
• Employee Earnings Record
• Gross Pay calculator
• Income Tax Accumulation

Deductions a business makes from its employees earnings (such as Fed Inc Tax) are recorded in a journal as ____________ to the business.

• Assets
• Expenses
• Liabilities
• Equities

A business is subject to unemployment tax on behalf of its employees earnings up to what amount each year?

• $5,200
• 3.75%
• 6.2%
• $7,000

Which account is debited when a business records it employee payroll?

• Salaries Expense
• Payroll Tax Expense
• Cash
• Salaries Payable

How does a business know how much to withhold from an employee for Federal Income  Tax?

• Its 6.2%
• Its 3.75%
• It looks at Publication 15
• Its .08%

What % is withheld from employees to pay for Social Security?

• 1.45%
• 3.75%
• 5%
• 6.2%

How much is withheld from employees earnings to pay for Medicare Tax?

• 1.45%
• 5%
• 6.2&
• 8%