Accounting - Chapter 12

A single person will have less income tax withheld than a married employee.

All deductions from employee wages are recorded in a payroll register.

Employee total earnings are calculated as regular hours x regular rate, plus overtime hours x overtime rate.

Payroll taxes are based on employee total earnings.

Businesses must withhold federal income tax from employee total earnings.

Social security tax is paid by the employer only.

Payroll taxes withheld represent a liability for an employer until payment is made.

The amount of income tax withheld from each employee's total earnings is determined from the number of withholding allowances and the employee's marital status.

The information used to prepare payroll checks is taken from the payroll register.

The first task in preparing a payroll is to determine the number of days worked by each employee.