liabilities or liability, Apart from the recording of payroll and payment to employees, what other payroll related journal entries would be recorded? A) True (C) annually. Company viability depends on expense control, form the link between the accounting and the human resource departments. A) True Magic Me is a manufacturer of magic kits. Employer only taxes. (C) a liability account Accounting 1 - Chapter 13 Flashcards | Quizlet D. FUTA Taxes Payable (6), True or False: Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with a quarterly statement. a. all the data must be both manually and digitally centered and checked, to ensure that the system is functioning properly. True False, An accounting firm would pay higher Workers' Compensation Insurance premiums than a steel mill because their employee wages would be higher. Ch 6 Payroll PRACTICE Flashcards | Quizlet T F, 28. (C) federal unemployment tax. True Garnishments d. they are used to determine where cumulative wages are in relationship to wage bases (caps) for various taxes, such as OASDI, FUTA and SUTA. One employee earnings record is used each payroll period to detail the earnings of all employees. d.None of these choices are correct. How good is your target country in enforcing the rule of law of the country? A fundamental concept in accounting is the _____ ____ , which must remain balanced. Liabilities. \text{Theoretical capacity} & \text{300} & \text{units}\\ E) Union dues withheld, 17. financial reports. (D) none of these. Have you computed the employer's share of the payroll taxes? b. variable, depending upon county that the levy originates. Multiple select question. What is the second line in the general journal entry used for? Suppose Nantucket Nectars has a machine for which it paid $160,000 several years ago and is currently not being used. (Check all that apply). -Employee contributes to United Way B) False, 3. In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by: d.Neither of these choices is correct. account balances form the basis for accounting reports; general ledger account balances aggregate data to determine payroll costs. Employer taxes, Shared taxes requires deduction from employee paychecks . Multiple choice question. The balances in the General Ledger accounts form the foundation of financial reports. (C) only in states where a state income tax is levied. and more. process of transferring amounts from the journal to the ledger is called posting; debit to an account in a journal transaction is a debit to that account in the ledger; ledger contains info about the individual accounts used in the journal transactions. true or false: A business is required by law to withhold certain payroll taxes from employee salaries. D) an administrative wage garnishment True False, The Form 940 is the source document for all employee payroll journal entries. 3. The employee earns tips. Cash -posting date and posting time Missed Exam ?'s. b. a credit to Cash = $1,178. A payroll accrual occurs The account balances form the basis for accounting reports. If employees must contribute to the state unemployment fund, this deduction should be shown in the payroll tax entry. False, 27. Study with Quizlet and memorize flashcards containing terms like a business form used to record payroll information os, the total earnings paid to an employee after payroll taxes and other deductions, a business form used to record details affecting payments made to an employee is and more. d.None of these choices are correct. Write the equation of the line passing through (5,-3) and parallel to the line with equation 2x+y=-3. Government officials C) Vacation pay earned by employees A) collecting the timesheets for the days accrued. Ch. 12 Flashcards | Quizlet Vacation pay earned by employees EEs' earnings records contain YTD gross pay which reflects when EEs reach tax bases; EEs' earnings records contain details of payroll tax reporting & may be considered as source documents. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. C246, Salary expense General ledger entries are made ______ (after/before) general journal entries. all income & expense accounts are included in the report; only accounts w/ balances @ the end of the period are included. The degree of completion of work-in-process inventory at September 30 was as follows: Required allocating employee expenses to departments. Would you expect the kinked demand curve to be more extreme (like a right angle) or less extreme (like a normal demand curve) if each firm in the cartel produces a near-identical product like OPEC and petroleum? Report an individual employees regular time and over time Carmen Gaetano worked 46 hours during this pay week. (p. 383), Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee an Multiple choice question. The withholding allowances of an employee affect (A) social security tax withheld. employer records the FICA, FUTA, and SUTA taxes? The contribution margin from the additional sales of 100% juices would be$90,000. Medicare tax when payday is after the end of the month. one-sided journal entries. Assets area Employee Income Tax Payable Assets area E) a percentage of the previous week's net payroll. FICA Taxes Payable - HI $358.94 -when managers want to pay employees later. c. state taxes. Which of the following acts prohibits discriminating in hiring, firing, promoting, compensating, or in any other condition of employment on the basis of race, color, religion, gender, or national origin? Multiple select question. Payroll Register, Employees' Earning Records, and Accounting System Entries, Payroll register and employees' earnings records are important payroll accountant tools (B) during the month following each calendar quarter. FICA Taxes Payable-OASDI. -Employer social security tax Employee Earnings Record. (1) . payroll report interface. Payment of voluntary withholdings A qualified retirement plan that provides most individuals with a deferred federal income tax benefit. salaries and wages payable. Government officials \text { Cash collections during the year } & 250,000 & 1,750,000 4. Under the Civil Rights Act of 1964 and the Age Discrimination in Employment Act, which of the following questions may not be asked by an employer during pre-hire inquiries? (2), True or False: The employer social security tax rate is different than the employee social security tax rate. Apart from recording of payroll and payment to employees, what other payroll related journal entries would be recorded? Amounts listed on Employees' Earnings Records are used to facilitate computations and to verify accuracy of Form 941, 940, 944, and W-2/W-3. for each event. In all computerized payroll systems, there is still the need to manually post from the printed payroll journal entry to the general ledger. (D) is the gross earnings for one quarter. c. is used to record Workers' Compensation premiums paid by the employee. State unemployment tax Have you prepared the appropriate tax returns? (B) Medicare tax. When payroll spans two months. debit to cash, credit to liability. Experts are tested by Chegg as specialists in their subject area. Payroll register. Each entry will be on one side per account. 7 and 8) 141 terms. Why is it important for a firm to use both a payroll register Social Security tax -chronological. Payment of statutory withholdings (5), True or False: Each employer is required by law to periodically report the payroll taxes withheld from employee salaries. following except: Since FUTA tax is paid only once a quarter, the FUTA tax expense is recorded only at the time of payment. Which basic records are generated in most payroll accounting systems? (B) transfer payment. Which of the following are true about the general ledger? (B) IRS Form W-2 Medicare tax The Employees ________ _______ Connects accounting and human resource records, The information to be transferred from the payroll register to the employee's earnings records is located in each ______, the employee _______ _______ contains year-to-date earnings for each employee, earnings record (the payroll register contains several earning records). (C) total hours plus overtime rate. The following information was obtained for the Assembling Department for the month of September. What is the original entry point for payroll information into the accounting system? Information gathered from the payroll register about each employee's payroll information is transferred to the ____ ____ ____. Provides information for decision-makers about costs and company profitability d. are the earnings paid for optional employee benefits. (D) in all 50 states. When the company pays for the state taxes withheld from the employee, the entry would be: Entering transactions in the general ledger. 4. When employees take vacation and use vacation time: general journal entries. \text{Selling price} & \text{\$ 50} & \text{per unit}\\ Study with Quizlet and memorize flashcards containing terms like True, False, False and more. True Although the garnishment would be deducted from the employee's pay, the business is responsible (liable) for remitting the deduction to the creditor. Payroll Taxes Acting on a tip from the local police, agents of Immigration and Customs Enforcement executed search warrants at the restaurant and at an apartment where some restaurant workers lived. (D) an asset account. Show your work. Type of entry \text{Normal capacity utilization} & \text{232.558} & \text{units}\\ Income Statement, A labor report provided to management would display: a. Wages expense, On which accounting reports would payroll-related assets appear? Payroll Accounting Final Exam Study Guide Part 1 - Quizlet useful in determining overhead allocations by department and the need for increased or decreased staff within a specific department, tracks the time employees have spent specifically on projects for which customers are paying, allow managers to determine how much overtime has been paid to employees during a specified time period, Trend reports of income over the period of the year can reveal seasonal increases or decreases in business. true or false:The investment income in a Roth IRA is not subject to federal income taxes when withdrawn. d. is used to record Workers' Compensation payments to injured workers. would be used for reporting, All of the following are examples of payroll liabilities except: d. companies are allowed to automatically enroll employees in the company's retirement plan. Study with Quizlet and memorize flashcards containing terms like . (B) January 1 of the following year. The issuance of checks to employees would reduce:(which account). \hline \text { Costs incurred during the year } & \$ 300,000 & \$ 1,575,000 \\ They must pay the employees with actual dollars. d.12. The total earnings paid to an employee after payroll taxes and other deductions is recorded in the payroll register's (A) Gross Pay column. (A) monthly. (c) The third group will determine the potential penalties that Tipton and Seferi could face for violating the Immigration Reform and Control Act by hiring six unauthorized workers. (B) IRS Form 941 and more. In recording the monthly adjusting entry for accrued wages at the end of the d.The Civil Rights Act of 1964 sets the minimum wage and the current minimum wage rate is $7.50 per hour. (B) separate payroll checking account. (B) accumulated earnings. True false question. Multiple select question. payment to employee based on a stated percentage of revenue. A separate record of each employee's earnings, used to complete W-2. electronic system. B) False, 15. Assume an initial starting FtF_tFt of 300 units, a trend (Tt)\left(T_t\right)(Tt) of eight units, an alpha of 0.300.300.30, and a delta of 0.400.400.40. preparing reports required by state unemployment compensation laws. T F, The only portion of wages that are exempt from a federal tax levy is: true or false: The larger the number of withholding allowances claimed, the larger the amount of income tax withheld. reversed in the next month. Assuming you can earn 6% on your funds, which option would you prefer? Tips received by employees are included as disposable earnings subject to garnishment for child support. Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday? Wages Expense In many payroll systems: (D) IRS Form 941. Do you have managerial approval for all employee pay for the period? (C) gross earnings. Promote analysis of payroll expenses. False, The employers' OASDI portion of FICA taxes is included as part of the payroll tax entry, but the b.The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. Each employee name is listed in a payroll register along with (A) employee number. Multiple choice question. The employees' earnings records are the link between accounting and human resources and contain information from the payroll register. Payroll Taxes a.SUTA funds are used to pay the state and federal administrative expenses and FUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. Multiple choice question. -Disciplinary actions The information needed in preparing a journal entry to record the wages earned, deductions from wages, and net amount paid each payday is obtained from the payroll register. a.Laborers for contractors who furnish materials, supplies, articles, and equipment to any agency of the United States, provided the minimum contract amount is $15,000. The garnishment that takes priority over all others is: The debit to Payroll Taxes for FICA, FUTA and SUTA taxes (rate = 4.5%) on a gross payroll of $200,876 (if no one has capped for FICA and not subject to the .9% Medicare on wages over $200,000, no one has capped for SUTA, and FUTA wages= $85,000), is: The employer FICA - OASDI ($200,876 x.062) + FICA - HI ($200,876 x .0145) + SUTA ($200,876 x .045) + FUTA ($85,000 x .006) = $24,916.43, On July 30, an analysis of the general ledger of Biomet Device Inc.'s shows the following credit balances: should be retained and destroyed at the same interval as other accounting records, A chronological record of a firms financial transactions, A record of a firm's financial transactions, grouped by account a. None of the above, The entry to deposit FICA taxes and federal income taxes withheld involves all of the following accounts except: general ledger entries. Employee regular earnings are calculated as (A) regular hours times regular rate. b. true or false:Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government. -cumulative total on the account In each pay period, the payroll information for each employee is recorded on his or her employee earnings record, The payroll register provides all the payroll information needed to prepare a payroll, A business deposits the total of gross wages in a separate payroll checking account, Employer payroll taxes are business expenses, The employer social security tax rate is different than the employee social security tax rate, Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation, The transaction to record employer payroll taxes expense is journalized at the end of the quarter, Each employer is required by law to periodically report the payroll taxes withheld from employee salaries, The timing of payroll tax payments is based on the amount owed, Form W-2 reports an employee's annual earnings and the withholdings for federal income, social security, and Medicare taxes, In the journal entry for a payroll, the amount debited to Salary Expense is the total of the Net Pay column of the payroll register, The tax base for Medicare tax is the same as the tax base for social security tax, If the tax base for calculating unemployment taxes is $7,000 and an employee's accumulated earnings are $6,500.00, and the employee earns another $1,500.00, the amount of new earnings subject to unemployment tax is $1,500.00, Some employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes on the next banking day, Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with a quarterly statement, Until the amounts withheld from employee salaries are paid by the employer, they are recorded as, The payment of payroll taxes to the government is referred to as a, The total earnings subject to federal unemployment tax is referred to as, Each employer must file a _________ federal tax return showing the federal income tax, social security tax, and Medicare tax due the government, Employers are required to furnish each employee with an annual statement of earnings and withholdings before (A) December 31 of the current year, The source document for paying employee income tax and social security and Medicare tax is, During the month following each calendar quarter, In general, employers are required to pay state unemployment taxes, The source document for paying state unemployment tax is, A state tax used to pay benefits to unemployed workers is, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine. Have you included any other mandatory deductions? Disposable earnings are the earnings remaining after withholding federal income taxes. Nicole Tipton and Sadik Seferi owned and operated a restaurant in Iowa. (5), True or False: In the journal entry for a payroll, the amount debited to Salary Expense is the total of the Net Pay column of the payroll register. Employees are assigned to departments to foster accurate measurements of business segment profitability. For each choice of denominator level, the budgeted production cost per unit is also the cost per unit of beginning inventory. \text{31-90 days}&\text{\hspace{5pt}36,540}&\text{17\\\%}\\ account -by account type. Study with Quizlet and memorize flashcards containing terms like How can the information shown in the employees' earnings record be used? Which of these accounts shows the total gross earnings that the employer union negotiations. engaged in a job in which tips of more than $30 a month are regularly recieved. What account would be classified as a liability account? Liabilities area Federal Income tax Social Security tax False. b. -Balances in the general ledger payroll accounts are used in payroll reports. FICA Taxes Payable-OASDI Data relating to the contract are summarized below: 20212022Costsincurredduringtheyear$300,000$1,575,000Estimatedcoststocompleteasof12/311,200,0000Billingsduringtheyear380,0001,620,000Cashcollectionsduringtheyear250,0001,750,000\begin{array}{lrr} Amounts withheld from employees' wages for health insurance are credited to a liability account. Recording the individual balances of each paycheck. (B) payroll . Wages Expense Entering the transactions in the general journal. -account number and date, Where will entries for payroll show in the trial balance? E) 26.85. 5. (B) marital status. Explain your reasoning. -when payday is after the end of the month. Other Quizlet sets. nonqualified pre-tax insurance; retirement plan. a. . A. regular hours times regular rate. a. a single standard deduction plus an exemption for the employee. True. FICA Taxes Payable - OASDI $1,534.78 EE retirement income security act (ERISA). Find the total for each response. When the fair value of the affiliate stock increases. unemployment tax payable-federal(multiply salary expense by .8%) using the wages of the salaried workers only. at the employer's discretion. Study with Quizlet and memorize flashcards containing terms like In each pay period, the payroll information for each employee is recorded on his or her employee earnings record, The payroll register provides all the payroll information needed to prepare a payroll, A business deposits the total of gross wages in a separate payroll checking account and more. True When remitting or depositing federal income taxes, the employer credits the cash account. Executive orders. A federal tax paid for hospital insurance. d.Only "A payroll register" and "The employee's earnings record" are correct. (B) quarterly a. (A) December 31 of the current year. treasurer, the account Union Dues Payable is debited. At the time that the entry is made to record the employers payroll taxes, the SUTA tax is recorded at the net amount (0.6%). answer choices . A) completing forms W-2. A) True (B) in states without a state income tax. (p. 387), Each employer is required by law to report payroll taxes on an a. can take 50% of an employee's disposable income for child support payments. d. the Payroll Manager is required by the IRS to submit the electronic records for verification. b.FUTA funds are used to pay the state and federal administrative expenses and SUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. c. affect the cash account. True or False: In each pay period, the payroll information for each employee is recorded on his or her employee earnings record. \text{Sales volume} & \text{260.000} & \text{units}\\ Past-DueCategory0-30days31-90daysOver90daysAccountsReceivableTotal$22,48036,54015,330PercentageUncollectible6%17%25%. 3 general ledger postings. b.To provide protection only for workers under the age of 18 What is the primary purpose of the Employee Retirement Income Security Act (ERISA)? What information is commonly provided by a job-seeker on the application for employment form? -journal entry and account number true or false:The first task in preparing a payroll is to determine the number of days worked by each employee. D) a percentage of the previous week's gross payroll. T-tables. 7. A deduction from total earnings for each person legally supported by a taxpayer, including the employee. Multiple choice question. Allocate employee expenses to specific accounts The maximum amount of gross earnings on which a tax is calculated, A retirement plan approved by the Internal Revenue Service. b. CostsincurredduringtheyearEstimatedcoststocompleteasof12/31BillingsduringtheyearCashcollectionsduringtheyear2021$300,0001,200,000380,000250,0002022$1,575,00001,620,0001,750,000. Denominator-level choices, changes in inventory levels, effect on operating income. Before beginning production of its new vacuum cleaner, the Devaney Company conducted an opinion survey of 1740 people. False, False b.The Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 What account would be classified as a liability account? T F, When recording the employer's payroll taxes, a liability account entitled Employers Payroll e.None of these choices are correct. A computer system based on a software package that performs all payroll record keeping and prepares payroll checks. Soccer teams Did you prepare tax deposits and have them checked for accuracy? c.Both of these choices are correct. employees' earnings records b.The payroll period Multiple select question. \hline\\ Tipton and Seferi were charged with hiring and harboring undocumented aliens. with the Form 940 reconciliation at the end of the year. \text{Over 90 days}&\text{\hspace{5pt}15,330}&\text{25\\\%}\\ . How are the funds used which are provided by FUTA and SUTA? B) False, 14. Identify some of the groups of users. c.Laborers for contractors who furnish materials, supplies, articles, and equipment to any agency of the United States, provided the minimum contract amount is $2,000. d. It allows payroll employees to create ghost employees . Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts. Multiple select question. Antidiscrimination orders for employees with contracts involving federal funds. -Each entry will be on one side per account. -letter and number Blank between entries The employee's _____ ____ connects accounting and human resource records earnings record Earnings records are supporting documents for Multiple choice question. B) False, 7. Earnings records are supporting documents for: Asset = Amounts belonging to the company Tipped employee. Multiple select question. a. the expense has already been recorded. E) None of the above, 16. payroll register employee's earnings record employee history record personnel record, The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. b.Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. -current entry amount per account type FIT Payable true or false:The amount of income tax withheld from each employee's total earnings is determined solely from the number of withholding allowances. Owners' Equity The employee's _____ ____ connects accounting and human resource records, Earnings records are supporting documents for, The payroll accountant may perform the following duties. pay cards. Do you know much each employee should be paid? -employees earn wages redundancy. The payroll register provides all the payroll information needed to prepare a payroll. Multiple choice question. Recording expenses only when paid is an example of: salaries and wages expense. (C) employee accounts payable record. Garnishment for child support payments Have you prepared the financial statements and managerial reports? Vacation Benefits Payable is credited. You purchased 200 shares of Smiley Incorporated, a small but profitable company. The reversal of General Journal entries is used to represent accrued employer payroll ____ and ____ at the end of the prior month. -before journal entries are recorded Multiple choice question. Restoration Midterm. A distribution column in a payroll register separates payroll expenses into classifications such as FUTA, SUTA and net payroll. A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents. Payroll transactions are recorded in the General Journal and posted to General Ledger accounts. jacksonglomb. The project began in 2021 and was completed in 2022. (D) overtime hours minus overtime rate. medicare tax payable, Recorded employer payroll tax expense for the semimonthly pay period ended april 15. D) Union dues withheld Period totals are also included (p. 390), To record the payment of federal unemployment tax, the account debited is (D) semiannually. (B) Total Earnings column. Entering the transactions in the general ledger. b.Executive employees who are 65 years or older and have held high policymaking positions during the two-year period prior to retirement. Did you journalize and post the employer's share transactions? (D) state unemployment tax. management/department heads False. E) FUTA Tax Expense- FUTA Taxes Payable, 14. 8 & 9 Part 2 - Infant Nutrition, Microsoft Office 2016 Excel 2016 Chapter 7 Wo, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus. Multiple select question. The reports are identical and provide necessary redundancy. Wages and taxes expenses (D) social security taxes. -union negotiations. a percentage of the previous week's gross payroll. bottles of its 100% juices. False. d. a credit to Vacation Benefits Payable = $1,178. In accrual accounting, there may also be end-of-period entries to accrue for payroll earned by the employees. Do you know what pay method each employee needs? a. they are part of the payroll package required to be sent to the IRS on an annual basis.

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