True/False
Indicate whether the statement is true or
false.
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1.
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The total amount earned by all employees for a pay period is
called gross pay.
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2.
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Total earnings are sometimes called gross pay or gross
earnings.
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3.
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All payroll taxes are based on employee total
earnings.
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4.
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Federal but not state governments may charge a business a
penalty for failure to pay correct payroll taxes when they are due.
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5.
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Payroll taxes withheld are an asset for the employer until
payment is made to the government, as the amount is held in a bank account.
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6.
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Federal income tax is withheld from employee earnings in all
50 states.
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7.
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A federal tax paid for hospital insurance is called
Hospitalization tax.
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8.
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Social security and Medicare taxes are paid by both
employees and employer.
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9.
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A business form used to record payroll information is called
a payroll register.
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10.
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A business form used to record details affecting payments
made to an employee is called a payroll ledger.
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Matching
Use the word list provided below not all
words will be used some may be used multiple times. Copy and paste so they are exact matches. Any
extra spaces or misspellings will be incorrect.
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A. | withholding allowance | G. | unemployment
insurance | B. | pay period | H. | certain low-income
employees | C. | social security tax | I. | account
balances | D. | the accounts receivable controlling
account | J. | payroll taxes | E. | total
earnings | K. | net pay | F. | Internal Revenue
Service | L. | tax base |
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1.
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The maximum amount of earnings on which a tax is calculated
is called a(n) ____.
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2.
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A federal tax paid for old-age, survivors, and disability
insurance is called ____.
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3.
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The money paid for employee services is called
____.
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4.
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The amount of federal income tax withheld from each
employee's total earnings is ____.
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5.
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Which of the following does not reduce net
pay?
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6.
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An exemption from withholding taxes is available for
____.
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7.
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Taxes based on the payroll of a business are called
____.
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8.
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The period covered by a salary payment is called a(n)
____.
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9.
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A deduction from total earnings for each person legally
supported by a taxpayer, including the employee, is called ____.
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10.
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The total pay due for a pay period before deductions is
called a(n)____.
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