True/False

Indicate whether the statement is true or false.

____ 1. Overtime pay is defined by the Fair Labor Standards Act as double an employees regular hourly wage rate.

____ 2. Gross earnings are an employees earnings before any amount is deducted by the employer.

____ 3. Net pay is calculated by subtracting all deductions from the employees gross earnings.

____ 4. The three basic payroll taxes imposed on most employers are FICA, SUTA, and FUTA.

____ 5. The Social Security program is funded solely by the contributions of employees.

____ 6. The FICAHI rate is 6.2% of all earnings.

____ 7. The total amount of the payroll taxes expense should be credited to a single liability account.

____ 8. The liability accounts used to record the employees share of the FICA taxes are different from the liability accounts used to record the employers share.

____ 9. The schedule an employer uses for depositing FICA taxes and federal income taxes withheld is based on the total tax liability reported during a two-quarter lookback period.

____ 10. Employers must file Form 941 at the end of each calendar