Payroll Final Exam Questions with Complete Correct Answers | Grade A+

Companies usually provide a separate column in the payroll register to record the employers payroll taxes Ans: False An employer will use the payroll register to keep track of an employees accumulated wages Ans: False Deduction from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll Ans: True If wages are paid weekly, postings to the employees earnings record would be done once a month Ans: False In order to prepare Forms W-2, an employer would utilize the employees earning record Ans: True Tax withholding from employees pay reduce the amount of the debit to salary expense in the payroll entry Ans: False The wages and salaries expense account is an operating expense account debited for total net pay each payroll period Ans: False The SUTA tax is not a social security tax Ans: False Since the Advance EIC payments are added to the employees take home pay checks, it is an added expense to the employer Ans: False FIT Payable is a liability account used to record both the employees withheld federal income taxes and also the employers match of that tax Ans: False A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees wages Ans: True When withheld union dues are turned over to the union by the employer, a journal entry is made debiting the liability account and crediting the Cash Account Ans: True Under the provision of the Consumer Credit Protection Act, an employer can discharge an employee simply because the employees wage is subject to garnishment for a single indebtedness Ans: False