Payroll - Accounting

Pension payments are required deductions from an employee's gross earnings

• True

• False

Both manual and electronic payroll systems require the same payroll input and output.

• True

• False

An employee's total earnings is known as net pay.

• True

• False

Under federal law, employers are required to withhold certain amounts from the total earnings of each employee to be applied toward payment of employee's federal income tax.

• True

• False

Unless an employer has only a few employees, manual systems can be inefficient.

• True

• False

An electronic payroll system is one in which data is processed using computers equipped with payroll software.

• True

• False

Under federal law, employers are required to withhold a % of employee's wages for health insurance premiums.

• True

• False

The Fair Labor Standards Act provides that all employees covered by the act will be paid 1 1/2 times the regular rate for hours worked over 40 per week.

• True

• False

Separate accounts are kept for each type of earnings deductions.

• True

• False

Companies must accumulate payroll data both for the business as a whole and for each employee.

• True

• False