Recording a Payroll
Recording Employer Payroll Taxes
Reporting Withholding and Payroll Taxes
Paying Withholding and Payroll Taxes
Just The Basics
100
The total of the Federal Income Tax column of a payroll register is credited to

a. a revenue account.
b. an expense account.
c. a liability account.
d. an asset account.
c. a liability account.
100
The source document for paying employee income tax and social security and Medicare tax is

a. a check.
b. a receipt.
c. a memorandum.
d. none of these.
a. a check.
100
What is a W-2?
a. a rock group from Dublin, Ireland.
b. a quarterly tax statement sent to the government.
c. a wage and tax statement given to employees annually.
d. a business annual dividends statement.
c. a wage and tax statement given to employees annually.
100
The Federal and State unemployment tax rates are what percent respectively?

a. 6.2% and 1.45%.
b. 0.8% and 5.4%.
c. 3% and 4%.
d. 1% and 2%.
b. 0.8% and 5.4%.
100
The normal balance of Accounts Receivable is a

a. Positive.
b. Negative.
c. Debit.
d. Credit.
c. Debit.
200
When a semimonthly payroll is paid, the credit to Cash is equal to the

a. total earnings of all employees.
b. total deductions for income tax and social security and Medicare tax.
c. total deductions.
d. net pay of all employees.
d. net pay of all employees.
200
A federal tax used for state and federal administrative expenses of the unemployment program is

a. Social Security tax.
b. Medicare tax.
c. federal unemployment tax.
d. state unemployment tax.
c. federal unemployment tax.
200
The Social Security tax and Medicare tax rates are what percent respectively?

a. 6.2% and 1.45%.
b. 0.8% and 5.4%.
c. 3% and 4%.
d. 1% and 2%.
a. 6.2% and 1.45%.
200
Journalizing the payment of federal taxes involves crediting Cash and debiting ALL of the following accounts:

a. Employee Income Tax Payable.
b. Employee Income Tax Payable, Social Security Tax Payable, and Medicare Tax Payable.
c. Employee Income Tax Payable and Social Security Tax Payable.
d. Social Security Tax Payable and Medicare Tax Payable.
b. Employee Income Tax Payable, Social Security Tax Payable, and Medicare Tax Payable.
200
The normal balance of Cash is a

a. Positive.
b. Negative.
c. Debit.
d. Credit.
c. Debit.
300
The source document for payment of a payroll is

a. a receipt.
b. a check.
c. a memorandum.
d. none of these.
b. a check.
300
To record the EMPLOYER payroll taxes expense, the following accounts are credited:

a. Payroll Taxes Expense and Employee Income Tax Payable.
b. Employee Income Tax Payable, Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable—Federal, and Unemployment Tax Payable—State.
c. Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable—Federal, and Unemployment Tax Payable—State.
d. none of these.
c. Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable—Federal, and Unemployment Tax Payable—State.
300
Employers must pay payroll taxes for

a. social security and Medicare.
b. social security and Medicare, federal unemployment, and state unemployment taxes.
c. federal income and social security and Medicare taxes.
d. none of these.
b. social security and Medicare, federal unemployment, and state unemployment taxes.
300
In the entry to journalize paying the liability for the first quarter federal unemployment tax, the account credited would be

a. Salary Expense.
b. Unemployment Tax Payable—Federal.
c. Payroll Taxes Expense.
d. Cash.
d. Cash.
300
The normal balance of Accounts Payable is a

a. Positive.
b. Negative.
c. Debit.
d. Credit.
d. Credit.
400
The entry to journalize paying a semimonthly payroll less deductions for employee income tax, social security and Medicare tax, and U.S. Savings Bonds is a credit to Cash and the liability accounts and a debit to

a. Salary Expense.
b. Unemployment Tax Payable—Federal.
c. Payroll Taxes Expense.
d. Cash.
a. Salary Expense.
400
A state tax used to pay benefits to unemployed workers is

a. Social Security tax.
b. Medicare tax.
c. unemployment tax.
d. state unemployment tax.
d. state unemployment tax.
400
Employers are required to furnish each employee with an annual statement of earnings and withholdings before

a. December 31 of the current year.
b. January 1 of the following year.
c. January 15 of the following year.
d. January 31 of the following year.
d. January 31 of the following year.
400
The source document for paying state unemployment tax is

a. a check.
b. a receipt.
c. a memorandum.
d. none of these.
a. a check.
400
The normal balance of Sales Tax Payable is a

a. Positive.
b. Negative.
c. Debit.
d. Credit.
d. Credit.
500
Until the amounts withheld from employee salaries are paid by the employer, they are recorded as

a. assets.
b. liabilities.
c. salary expense.
d. revenue.
b. liabilities.
500
The total earnings subject to federal unemployment tax is referred to as

a. unemployment taxable earnings.
b. taxable earnings.
c. gross earnings.
d. total earnings.
a. unemployment taxable earnings.
500
Each employer must file a federal tax return showing the federal income tax and social security and Medicare taxes due the government

a. monthly.
b. quarterly.
c. yearly.
d. semiannually.
b. quarterly.
500
In general, employers are required to pay state unemployment taxes

a. monthly.
b. during the month following each calendar quarter.
c. annually.
d. none of these.
b. during the month following each calendar quarter.
500
When applying a credit to a debit balance, or debit to a credit balance, you

a. add.
b. subtract.
c. enter a letter in the Post. Ref. column.
d. none of the above.
b. subtract.
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