Unit 4: Chapters 12 & 13

Question 1

payroll

Answer 1

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

Question 2

pay period

Answer 2

the amount of time over which an employee is paid

Question 3

payroll clerk

Answer 3

an employee responsible for preparing the payroll

Question 4

gross earnings

Answer 4

the total amount of money an employee earns in a pay period; also called gross pay

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 time an employee arrives at work, leaves work, and the total number of hours worked each day

Question 8

electronic badge readers

Answer 8

an electronic device that scans the magnetic strip containing employee information on a employee identification badge and then transfer the information directly to the computer

Question 9

commission

Answer 9

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

Question 10

piece rate

Answer 10

a rate of pay based on the number of items produced

Question 11

overtime rate

Answer 11

pay rate employers are required to pay certain employees covered by state and federal laws; the Fair Labor Standard Act of 1938 sets the rate a 1.5 times the regular hourly rate after 40 hours per week

Question 12

deduction

Answer 12

an amount that is subtracted from an employees gross earnings

Question 13

withholding allowance

Answer 13

an allowance an individual claims on a Form W-4; it is used to calculate the amount of income tax withheld from an employee’s paycheck

Question 14

40l(k) plan

Answer 14

a voluntary payroll deduction from gross earnings; the employee does not pay income tax on the amount contributed until the money is withdrawn from the plan, usually after age 59.5

Question 15

payroll register

Answer 15

a form that summarizes information about employees earnings for each pay period

Question 16

net pay

Answer 16

the amount left after total deductions have been subtracted through gross earnings

Question 17

direct deposit

Answer 17

depositing net pay directly into an employees personal bank account through electronic funds transfer

Question 18

employee’s earning records

Answer 18

a record prepared for each employee that contains all payroll information related to the employee; it is kept on a quarterly basis

Question 19

accumulated earnings

Answer 19

the employees year-to-date gross earnings

Question 20

salaries expense

Answer 20

the expense account used to calculate GROSS earnings

Question 21

Federal Unemployment Tax Act (FUTA)

Answer 21

law that requires employer’s to pay unemployment

Question 22

State Unemployment Tax Act (SUTA)

Answer 22

law that requires employer’s to pay state unemployment taxes to individual states

Question 23

unemployment taxes

Answer 23

taxes paid by employer to provide funds for those temporarily out of work

Question 24

payroll tax expense

Answer 24

account used to record employers payroll taxes (FICA)

Question 25

W-2

Answer 25

given to employee’s to summarize earnings + amounts withheld for federal, state, and local taxes

Question 26

W-3

Answer 26

summarizes a W-2 and accompanies when sent to the government

Question 27

Form 941

Answer 27

reports income tax, social security tax, or medicare tax withheld from employee’s paychecks

-quarterly federal tax return

Question 28

Form 940

Answer 28

reports employees federal unemployment tax

Question 29

FICA

Answer 29

-social security
-medicare
-federal income tax