Accounting Book #8

Question 1

Federal Unemployment Tax (FUTA)

Answer 1

A federal tax used for administrations of state and and federal unemployment programs.

Question 2

Federal Insurance Contribution Act (FICA)

Answer 2

A law requiring employers and employees to pay taxes to the federal government to support Social Security programs; “FICA” also refers to the taxes themselves.

Question 3

Gross Earnings

Answer 3

The total amount due each employee for the pay period before any payroll deductions; also referred to as gross pay.

Question 4

Pay Period

Answer 4

A period covered by a salary payment.

Question 5

Payroll

Answer 5

All salaries and wages paid to employees.

Question 6

Payroll Deductions

Answer 6

Required and voluntary deductions from gross earnings to determine net pay.

Question 7

Salary

Answer 7

A payment plan that pays employees a fixed amount for each pay period.

Question 8

Semimonthly

Answer 8

Twice a month; refers to a pay period that usually falls on the 15th and the 31st of the month.

Question 9

State Unemployment Tax

Answer 9

A tax imposed by a state to pay benefits to the unemployed.

Question 10

Wages

Answer 10

Payment based on an hourly rate or a piecework basis.

Question 11

Withholding Allowance

Answer 11

The number of persons legally supported by the taxpayer.

Question 12

Time and a Half

Answer 12

A term used to describe the rate a worker is paid for overtime. The overtime rate is the worker’s regular hourly rate (“time”) plus half his regular rate (‘and a half”)

Question 13

Employee Earnings Record

Answer 13

a form used to summarize payroll payments made to each individual employee.

Question 14

Payroll Register

Answer 14

An accounting form that summarizes payroll information for all employees during a specific pay period.

Question 15

Quarterly

Answer 15

Every three months; in a calendar year the quarters are Jan through March, April through June, July through Sep, and Oct-Dec.