3. All Deductions from Employee Wages Are Recorded in a Payroll Register

CHAPTER 12 REVIEW

1.  Know vocabulary words

2.  Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government

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

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

5.  Total earnings are sometimes referred to as gross pay or gross earnings.

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

7.  The amount of income tax withheld from each employee’s total earning is determined from the number of withholding allowances and by the employee’s marital status.

8.  When an employee’s earnings exceed the tax base, no more social security tax is deducted.

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

10.  A business is required by law to withhold certain payroll taxes from employee salaries.

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

12.  Social security tax is paid by the employer and employee.

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

14.  Employee regular earnings are calculated as regular hours times regular rate.

15.  The amount on the employee earnings record used to determine if certain payroll taxes apply to an employee’s earning is accumulated earnings.

16.  Federal income tax is withheld from employee earnings in all 50 states.

17.  The Accumulated Earnings column of the employee earnings record is the total earnings since the first of the year.

18.  The withholding allowances of an employee affect federal income tax withheld.

19.  A business form used to record details affecting payments made to an employee an employee earnings record.

20.  Each employee name is listed in a payroll register along with employee number, marital status, withholding allowances.

21.  Individual payroll checks are usually written on a special payroll checking accounts.

22.  The total earnings paid to an employee after payroll taxes and other deductions is recorded in the payroll register’s net pay column.