Question

TRUE/FALSE 1. Social Security taxes are levied equally on the employee and the employer. 2. Employee benefits costs represent expenses to the employer in addition to the direct costs of salaries and wages. .3. Unearned revenues are classified as current liabilities 4. Each time a payroll is recorded, a separate journal entry usually is made to record the employer's FICA and state and federal unemployment taxes. 5. Since Jon Company has very little employee turnover, the company has received a very Tavorable merit rating. As a result, Jon Company should expect to pay substantial smaller amounts of FICA taxes than normal. 6. Employee payroll deductions include FICA taxes, income tax, and voluntary deductions such as for pensions and charities. Employers report FICA Taxes and federal income tax withholdings using Form 941. .7. An employer's payroll records include a payroll register for each pay period, payroll checks and statements of earnings, and individual employee earning reports. 8. Net pay is recorded as taxes payable. 9.

Answer 1

As per HOMEWORKLIB POLICY and guideline, the 1^st-four questions are answered below:

1.

Answer: True

It includes old age, survivors, and disability insurance. The periodic employee pay is deducted by the amount of employee contribution and the same amount is also funded by the employer as well.

2.

Answer: True

This is fringe benefits or non-wage benefits, like car facility, furnished accommodation, etc. These are provided by an employer to employee apart from the normal periodic wage payment. This is also known as perquisites.

3.

Answer: True

If a customer paid in advance, for which the required sales activities have not yet been done, then it becomes unearned revenue. Receiving of such advance becomes a current liability till the fulfilment of required performance obligation.

4.

Answer: True

There are two parts in payroll journal – one is employee payroll and the other is employer payroll taxes. In case of second journal (employer payroll taxes), employer’s contributions to FICA tax, state unemployment tax, and Federal unemployment tax are considered.