The company that hires the workers is referred to as the
employer
A(n) ____ is the person hired by a company who will receive salary or wages on a regular basis.
employee
Payroll involves all of the following except
preparing a spreadsheet with government agencies names and addresses.
Withholdings generally refer to
the payroll taxes the employer is required to take out of the employee's paycheck and submit to the appropriate government agency.
____ generally refer(s) to amounts taken out of the employee's paycheck for various fringe benefits such as insurance, pension, and so on.
Deductions
Payroll Setup in QuickBooks includes all of the following except
Activating the Item List.
Items such as earnings, payroll tax, and payroll deductions are contained in the ____ List/Center.
Payroll Item
Gross pay is the total earnings for the employee for a specific pay period
before any withholdings and deductions.
By what acronym is the Social Security tax known?
FICA
With regard to payroll and federal income tax (FIT), which of the following statements is not true?
Employers generally do, but are not required to, withhold federal income tax from employees' pay.
The acronym FUTA refers to the ____ tax.
Federal Unemployment Insurance
Which of the following pairs of taxes represent the federal and state versions of unemployment insurance tax?
FUTA and SUI
These taxes are imposed on both the employer and the employee.
FICA and Medicare
____% is the FICA tax rate up to $____ of each employee's gross earnings.
6.2; 118,500
Which of the following payroll items would not be considered an expense for the company?
Federal Income Tax (FIT)
Because the company is responsible for remitting to the tax-collecting agencies the federal and state income taxes it withholds from employees' gross pay, these taxes are recorded as ____ on the books of the company.
liabilities
The United States Treasury is responsible for collecting all of the following taxes, except
SUI
To activate the QuickBooks payroll feature in a company that has already been set up, begin by clicking ____ on the main menu bar, and then Preferences.
Edit
When you activate the payroll feature, QuickBooks creates these ledger accounts.
Payroll Expenses and Payroll Liabilities
When the payroll feature is activated, QuickBooks establishes
one default liability posting account for all payroll-related liabilities.
When processing payroll in QuickBooks, most companies
create several payroll liabilities accounts and expense accounts which are subaccounts of the accounts created by QuickBooks.
In order to process payroll using QuickBooks, a company
must indicate a QuickBooks payroll service will be used or that payroll will be processed manually.
Once a company subscribes to a QuickBooks payroll service
employee withholdings and taxes on the employer are computed automatically.
To set up payroll for manual processing, the company
must use the Help menu.
How is the Payroll Item List made available in QuickBooks?
It is automatically set up when you activate the payroll feature and subscribe to a payroll service or activate the manual entries feature.
The Payroll Item List usually has to be customized based on the following for the company except
the number of employees.
When QuickBooks creates the Payroll Item List, what items are included?
Items generally applicable to all payroll situations.
What are the two methods for adding a payroll item in QuickBooks?
EZ Setup and Custom Setup
For each item on the Payroll Item List,
there are several pages of information that are displayed each time you click Next.
For items on the Payroll Item List that were created by QuickBooks,
you may customize the default name.
The Agency page of the payroll item
is a vendor in the Vendor Center.
When selecting liability accounts and expense accounts for payroll items, a company should
use the payroll subaccounts.
When customizing the Social Security and Medicare payroll items, you must choose ____ liability account(s) and ____ expense account(s).
2, 1
When adding a new payroll item, you must first choose a payroll item type on one page, and then choose a subtype on the next page. How many payroll item types are there?
7
Which is not one of the choices on the Payroll item type page?
Employer