Trimester 2 Final EXAM/Accounting IB

1.

1 point

Some employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes on the next banking day.

True

False

2.

1 point

Employer payroll taxes are business expenses.

True

False

3.

1 point

This Form W-2 shows Rick Selby's net pay for the entire year.

True

False

4.

1 point

When Rick Selby files his federal income tax return, he must attach Copy B of Form W-2 to his return.

True

False

5.

1 point

An employer social security tax rate is not the same as the employee social security tax rate.

True

False

6.

1 point

The employer social security tax rate is not the same as the employee social security tax rate.

True

False

7.

1 point

The transaction to record employer payroll taxes expense is journalized at the end of the quarter.

True

False

8.

1 point

Businesses in states with state income tax do not have to prepare additional copies of Form W-2.

True

False

9.

1 point

Each employer is required by law to periodically report the payroll taxes withheld from employee salaries.

True

False

10.

1 point

Employee withheld income tax, employee social security and Medicare tax, and employer social security and Medicare tax are paid periodically to the federal government in a combined payment.

True

False

11.

1 point

All employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes using the Electronic Federal Tax Payment System (EFTPS).

True

False

12.

1 point

State income tax was withheld from Mr. Selby's salary.

True

False

13.

1 point

Each employer who withholds income tax and social security and Medicare tax from employee salaries must furnish each employee with a quarterly statement.

True

False

14.

1 point

The amount withheld for Mr. Selby's social security and Medicare tax was more than the amount withheld for his federal income tax.

True

False

15.

1 point

All deductions from Mr. Selby's salary are shown on his Form W-2.

True

False

16.

1 point

The payroll register and employee earnings records provide all the payroll information needed to prepare a payroll.

True

False

17.

1 point

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.

True

False

18.

1 point

The source document for payment of a payroll is the time card.

True

False

19.

1 point

An employer is required to provide employees with a Form W-2 no later than January 31 of the year following the one for which the report has be completed.

True

False

20.

1 point

This Form W-2 would indicate whether Mr. Selby had more than one employer during the year.

True

False

21.

1 point

If an employee works for several employers during the year, that employee must receive a Form W-2 from each employer.

True

False

22.

1 point

The source document for journalizing employer payroll taxes is a check.

True

False

23.

1 point

If an employee's accumulated earnings are $6,200, and the employee earns another $1,800, the amount of new earnings subject to unemployment tax is $800.

True

False

24.

1 point

Ricky Selby's total salary is more than his total social security salary.

True

False

25.

1 point

Employer payroll taxes expense is based on a percentage of employee earnings.

True

False