REVIEW QUESTIONS 100 LO1 LO2 LO2 LO2 TIPS 20 1. Why is it important for payroll accounting purposes to between an employee and an independent contractor? 2. Name three major categories of deductions from an employee's gross pay. LO3 LO3 LO3 LO37. LO4 distinguish 3. Identify the four factors that determine the amount of federal income tax that is withheld from an employee's pay each pay period. 4. In general, an employee is entitled to withholding allowances for what purposes? 5. Identify the three payroll records usually needed by an employer. 6. Describe the information contained in the payroll register. Why is it important to total and verify the totals of the payroll regis- ter after the data for each employee have been entered? 8. Distinguish between the payroll register and the employee earnings record. 9. Explain what an employer does with the amounts withheld from an employee's pay. LO5 10. Explain why payroll processing centers and electronic systems are commonly used in payroll accounting.

LO1 1. Why is it important for payroll accounting purposes to distinguish between an employee and an independent contractor? LO2 2. Name three major categories of deductions from an employee's gross pay. LO2 3. Identify the four factors that determine the amount of federal income tax that is withheld from an employee's pay each pay period. LO2 4. In general, an employee is entitled to withholding allowances for what purposes? LO3 5. Identify the three payroll records usually needed by an employer. LO3 6. Describe the information contained in the payroll register. LO3 7. Why is it important to total and verify the totals of the payroll register after the data for each employee have been entered? LO3 8. Distinguish between the payroll register and the employee earnings record. LO4 9. Explain what an employer does with the amounts withheld from an employee's pay. LO5 10. Explain why payroll processing centers and electronic systems are commonly used in payroll accounting