Payroll Accounting

In a few states, employees are also required to pay unemployment taxes.

• True
• False

The Cash in Bank account is debited for the amount the employees actually earn in the pay period

• True
• False

The only taxes that the employer must pay are unemployment taxes.

• True
• False

The amount entered for Payroll Tax Expense is the total gross earnings of the pay period.

• True
• False

The social security tax is paid by both employer and employees.

• True
• False

Amount deducted from employees' earnings and held for payment by the employer become liabilities to the business.

• True
• False

The entry for Salaries Expense is recorded each pay period, but the entry for Payroll Tax Expense is recorded only at the end of the year.

• True
• False

When a business transfers money from its regular checking account to the payroll checking account, the check is written for the total net pay amount.

• True
• False

An employer normally pays federal withholding taxes, social security taxes, and medicare taxes once a year.

• True
• False

The payroll register is the source of information for preparing the journal entry for payroll.

• True
• False