Accounting - Chapter 12

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

• True

• False

All deductions from employee wages are recorded in a payroll register.

• True

• False

Employee total earnings are calculated as regular hours x regular rate, plus overtime hours x overtime rate.

• True

• False

Payroll taxes are based on employee total earnings.

• True

• False

Businesses must withhold federal income tax from employee total earnings.

• True

• False

Social security tax is paid by the employer only.

• True

• False

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

• True

• False

The amount of income tax withheld from each employee's total earnings is determined from the number of withholding allowances and the employee's marital status.

• True

• False

The information used to prepare payroll checks is taken from the payroll register.

• True

• False

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

• True

• False