Chapter 12

Question 1

payroll

Answer 1

a list of the employees and the payments due to each employee for a specific pay period

Question 2

pay period

Answer 2

amount of time over which an employee is paid

Question 3

payroll clerk

Answer 3

• makes sure employees are paid on time
• makes sure each employee is paid the correct amount
• completes payroll records
• submits payroll reports
• pays payroll taxes

Question 4

gross earnings

Answer 4

total amount of money an employee earns in a pay period

Question 5

salary

Answer 5

a fixed amount of money paid to an employee for each pay period

Question 6

wage

Answer 6

an amount of money paid to an employee at a specified rate per hour worked

Question 7

time card

Answer 7

a record of the times an employee arrives and leaves work each day

Question 8

commission

Answer 8

an amount paid to an employee based on a percentage of the employees sales

Question 9

W 4 Form

Answer 9

a form filled out by each employee when starting a job

Question 10

overtime rate

Answer 10

1.5 x regular rate

Question 11

deduction

Answer 11

an amount that is subtracted from gross earnings

Question 12

allowance

Answer 12

reduces the amount of income tax to be withheld

Question 13

401K Plan

Answer 13

an employee contributes a portion of gross earnings to an account in the 401 (k) plan and does not pay more income tax on the contributed earnings

Question 14

payroll register

Answer 14

form that summarizes information about employees earnings for each pay period

Question 15

net pay

Answer 15

gross earnings - total deductions

Question 16

direct deposit

Answer 16

the net pay is deposited in the employees personal bank account by the employer

Question 17

accumulated earnings

Answer 17

the employee’s year-to-date gross earnings, or the employee’s gross earnings from the beginning of the year through the end of each pay period