SUTA Taxes Payable-liability An employee is hired at a pay rate of $10 per hour. The payroll register needs to record the hours each employee has served in the firm in a day. Federal income tax payable 11,955. D) Credit $30. A) Both documents contain year-to-date totals of taxes. Any boxes left with a question mark will be C) Payroll accounts do not appear on the trial balance because of their changeable nature. Purchaseoftreasurystock. B) It is employee labor that does not pertain to labor on customer jobs. Calculate regular and overtime pay. Only "A payroll register" and "The employee's earnings record" are correct. A payroll register can also . An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. automatically graded as incorrect.) A) It should create a reminder about the accrual to ensure accuracy of computations on the next Of the items in the following list, which one (s) should appear in a payroll register? Click the card to flip Definition 1 / 66 True Click the card to flip Flashcards Learn Test Match Created by lauraberth67 Terms in this set (66) Does every state have state unemployment laws? & \text{ } & \text{ }\\ Employee SIT Payable-liability (review sheet 4), Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1, The purpose of the net pay and check number columns in the payroll register is to verify The employers total expense for Marys employment during the week is. The first answer is provided as an example. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services. ERISA provides for full vesting of the employer's contribution to an employee's pension fund in 3 years or gradually over: these factors are bona fide occupational qualifications for the job. We have been recognized by esteemed organizations for the value we bring to our clients, our associates and the global community. D) Debit Health Insurance Payable $27,237; Credit Cash $27,237. Plan B costs$0.20 per minute plus $0.10 per text message sent. so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. We provide payroll, global HCM and outsourcing services in more than 140 countries. Purchase of treasury stock.} Health Insurance payable 224 8,375. How does the FIFO method different from the weighted-average method? Jan 31 J4 420 1, Upload your study docs or become a Course Hero member to access this document Continue to access Term Winter Professor N/A Tags Besides payroll information, the payroll register contains ________. Click here to learn more. Payroll-Operating expense-liability Are FICA taxes levied upon employers only? McHale Enterprises has the following incomplete General Journal entry for the most recent pay Oct 27 Wages and salaries payable 226 202,671. Saleofequipmentforanotereceivable. For fill-in-the-blank questions, press or click on the blank space provided. Discover what others say about us. The primary journal entry for payroll is the summary-level entry that is compiled from the payroll register, and which is recorded in either the payroll journal or the general ledger. Which of the following are processes that occur in most payroll accounting systems? Fair Labor Standards Act Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. Sale of equipment for a note receivable.} Fast, easy, accurate payroll and tax, so you can save time and money. 9. Since Eco Brewers is a monthly schedule D) $1,875. Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO. Legalor equitable procedure by which a protion of the wages of any person must be withheld for payment of a debt. Learn more about Privacy at ADP, including understanding the steps that weve taken to protect personal data globally. Employee benefits, flexible administration, business insurance, and retirement plans. True False. & \text{ } & \text{ }\\ ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. Step 2: Working Hours. If you are recording it directly into the general ledger or the payroll journal, then use the same line items already noted for the primary payroll journal entry. Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. D) Debit $8. Journal entries? Which act sets the minimum wage, and what is the current wage rate? B) The account appears fourth in the list of liability accounts. What are the main kinds of information contained in a payroll register? See how we help organizations like yours with a wider range of payroll and HR options than any other provider. & \text{ } & \text{ }\\ Basic payroll register templates can be found online or created in programs like Excel. Paymentofemployeesalaries.OCO2. Which of the following is not a provision of ERISA? A) the beginning and ending dates of the pay period \begin{matrix} Direct labor usage. 34. Use rates of 6.2 percent for the employer's shareof the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. This will decrease What is the purpose of the Age Discrimination in Employment Act (ADEA)? Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? question mark Will be automatically graded as incorrect.) A) Debit $1, D) It adds complexity to the payroll register. 4. The accrual entry, as shown next, is simpler than the comprehensive payroll entry already shown, because you typically clump all payroll taxes into a single expense account and offsetting liability account. 1. Issuance of common stock.} A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. B) It depicts the ideal distribution of labor in a firm. 2. ERISA provides for full vesting of the employer's contributions in three years or gradually over six. D) Federal withholding tax payable A) It is a list of all persons and companies that the company pays money during a period. ls Form l-9 completed only by employees born in outside of the USA? Deductions. D) The same as the chart of accounts The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. 9. There will also be credits to a number of accounts, each one detailing the liability for payroll taxes that have not been paid, as well as for the amount of cash already paid to employees for their net pay. * Learn how we can tackle your industry demands together. C) Labor reports A) Ledgering The payroll register contains ________. True, Employee earnings records form the link between accounting and the human resources D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 ls the Federal Government covered under the Civil Rights Act of 1964? B) Both documents contain information about the employee's address and job title. & \text{ } & \text{ }\\ E. All are provisions of FLSA. B) A debit balance will increase the expenses of the firm's income statement. FICA Taxes payable-HI-liability & \text{ } & \text{ }\\ All rights reserved.AccountingCoach is a registered trademark. Payroll registers generally are more detailed than payroll journals and include specific information about each employee. During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) Jan 19 Wages and salaries payable 226 8,134. Current period taxable earnings for FICA taxes are as. False, Two complete payroll-related General Journal entries are recorded each pay period: one for the Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. Which of the following records lists all employees who earn remuneration, the amount of remuneration, the deductions, and the net amount paid for each payroll period? FICA (Federal Insurance Contributions Act). Payroll journals are records of all payroll transactions. D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General B) It must create an adjusting entry to recognize the payroll accrual. Workers' compensation insurance premiums are paid for by the employees, Workers' compensation insurance premiums vary according to the different degrees of danger in the employees' jobs. C) Debit $ lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? 39. Can employees view documents in their files that are marked confidential? If a firm accrues the payroll due but not paid at the end of a financial period, what should it do Cross), Give Me Liberty! Medicare tax payable 3,197. May criminal background checks be used by all employers for any person? A) the firm's payroll checking account information 1. A) Worker's Compensation The town is considering an ordinance that would prohibit putting 13. C) As expenses Correct answer: Option (1) Medicare tax is the correct answer. in its Federal withholding tax payable account. Purchaseofinventory.7. At ADP, we say that were Always Designing for People, starting with our own. In Philadelphia, Pennsylvania, most workers are subject to three income taxes upon their earnings - federal state and city. Under the Family and Medical Leave Act, employers can exempt an employee who has not worked for the employer for at least one year and has worked for the company for at least 1,250 hours in the last year. Find payroll and retirement calculators, plus tax and compliance resources. Based on the following data, prepare the appropriate journal entry when paying employees: Total wages earned were $8000 C) proof of payroll deposits The portion of the Federal Insurance Contributions Act that deals with Social Security is called. Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. They must disclose to the job applicant that they are seeking an investigative report. Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? Wages and salaries payable 226 117,334. 56. expense 522 $ 12,987. Collection of notes receivable.} Under FMLA, the time must be used in one uninterrupted period of time. The volume of manual paycheck entries can be reduced by continual attention to the underlying causes of transaction errors, so there are fewer payroll errors to be rectified with a manual paycheck. Paymentofincometaxes.9. e. None of the above. The higher payroll Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. A) Net pay Read more about the author. D) It is a report designed to be read by parties external to the firm. 1. What is the On which financial report will employer-paid portions of health insurance premiums be listed? Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? DEBIT CREDIT DEBIT CREDIT Which act covers employee pension and welfare plan.? Quickly connect ADP solutions to popular software, ERPs and other HR systems. Which report contains employer share tax expenses for a period? All salaried employees. 4. serves as a backup in the event of computer failure. Another important step in maintaining a payroll register is to perform audits. Prior year's earnings < Prev 18 of 40 . B. Pre-hire questions pertaining to religion, gender, national origin, or age are allowed if: Which of the following forms is used to notify the Payroll Department to add a new employee to the payroll? pay date. Jan 31 J4 420 1, & \text{ } & \text{ }\\ B) By dollar amount D) It may contain whatever accounts the accountant wishes to include. C. Restrictions the employment of child labor. Information available through a secured web sit, kiosk, or interactive voice response system. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. date: Oct 27 Wages and salaries expense 522 $298,384. Employee FIT Payable-liability Neither The Balance Sheet Nor The Income Statement. Accounting questions and answers. Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. the box With the question mark to empty the box for a wrong answer. 6. This information is also reflected in summary level entries in the businesss general ledger. 57. chronologically. Under the Consumer Credit Protection Act, what is the maximum percentage that can be deducted from an employee's pay to satisfy a student loan garnishment? C) It is the fourth repetition of the same entry. Are employers required to keep a photocopy of the l-9 form? ls the payroll register used in preparing the Form W-2? Any boxes left with a question mark will be automatically graded as B) the total gross pay, deductions, and net pay during the period Entitled to retirement program even if you're no longer working there. c. More than five have large-screen TVs? Factory payroll costs in cash. Employers use the employee's earnings record in preparing ___. Book the entry on the date paychecks are distributed. HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Didier and Sons had the following employer's share payroll tax general journal entry for the May Federal withholding tax payable 220 $ 2,207. B) It should make a note to create the reversing entry at the end of the next financial period. Sale of land for cash.} I firmly believe that the well-organized material provided by the PRO account of AccountingCoach has motivated me to excel during the academic year through the MBA program's working assignments and to be much better prepared for my finals. Collectionofanaccountreceivable. Chapter 6: Analyzing and Journalizing Payroll, , , AP Lang - Television: The Plug-In Drug (T/V), Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition, Alvin A Arens, Mark A Beasley, Randal J Elder, National Association for the Advancement of Colored People. On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. B) Payroll register How might globalists and traditionalists view cultures, places, and regions differently. Union Dues Payable-liability and year-to- date earnings. It is quite common to create a manual check, either because an employee was short-paid in the preceding payroll, or because the company is laying off or firing an employee, and so is obligated to pay that person before the next regularly scheduled payroll. D. Religion A) As assets 401(k) contributions payable 223 454. This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. You can enter a formula into a cell manually (typing it in) or by pointing to the cells. The other hourly employees receive overtime pay when they work more than 35 hours in one week. To which items is information from the payroll register transferred? 2. B) $15,298. Wages and salaries payable 226 202,671. Does the ADEA quit protecting employees after the age of 70? Wages and salaries-Operating expense-debit DEBIT CREDIT DEBIT CREDIT BALANCE D. FMLA So that the total amount of accumulated wages can be recorded for each pay period thus when the accumulated wages of an employee reaches the cutoff level has been reached. 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? Collectionofnotesreceivable. 64. 8. B) Debit Cash $13,618; Credit Health Insurance Payable $13,618. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Q09. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. A) It must credit the asset accounts for the appropriate payroll amounts. Rushing River Boats has the following data in its Social Security tax payable General Ledger The Federal Insurance Contributions Act covers restrictions on the employment of child labor. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? Vacation Benefits Expense-Operating expense \text{3. Whenever employers withhold taxes and deductions from wages, pay employees or deposit tax payments with government agencies, that information should be simultaneously documented in the payroll register. A) Form W- 31. posted an additional $4,390 on its October 31 pay date. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. False - also needs to be a reasonable amount. At ADP, we believe sports and business both require the right approach. Should an employer in Philadelphia record the liability for the withholding of all three income taxes in one liability account such as INcome Taxes Payable? D. Requires equal pay for equal work, regardless of gender. D) Company website B. Net pay $ 19,747. B) It contains a detailed listing of every transaction during a period. At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. (You may select more than one answer. & \text{ } & \text{ }\\ February 7 Journalize the employer . A) Debit $1, D. 50 Authorize a power of attorney. Federal Insurance Contribution Act (FICA), Form 941, Employer's Quarterly Federal Tax Return, Form W-3, Transmittal of Wage and Tax Statements, Applicable pay rates (regular or overtime), Review outgoing costs, either per employee or for the entire organization, Track employee deductions and tax withholding amounts, Reconcile payroll expenses to the general ledger, Record and track employee leave time, such as sick, vacation and paid time off (PTO), Validate direct deposit transactions and employer contributions to deferred compensation plans, such as a, Federal income taxes withheld from employee wages, State and local income taxes withheld from employee wages (if applicable), Federal unemployment taxes payable by the employer, State unemployment taxes payable by the employer, State unemployment taxes withheld from employee wages (if applicable), Benefits and other voluntary deductions from employee wages, Employer contributions to benefits and retirement savings plans. PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. 20. These details include the employee id number, the department they belong, their job profile, etc. Social Security tax payable 221 17,980. Record the health insurance deduction. Payment of income taxes.} I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." Application of overhead to goods in process. Payroll registers also provide aggregate employee information at a glance, which can be helpful when depositing tax payments, filing tax returns and performing other basic accounting tasks. 30. E. Sex, Which of the following statements is NOT a provisions of ERISA? Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? Saleoflandforcash.3. Explain the use of the "Cumulative" column in the employee's earnings record. During the past week, the employee worked 50 hours. Read the latest news, stories, insights and tips to help you ignite the power of your people. Under the U.S. payroll tax a employee has to pay the tax on hi . How do the Stanford-Binet and Wechsler tests differ? A) A debit balance will increase the expenses of the firm's income statement. 221 A. Medicare tax payable 222 ??? ADP hires in over 26 countries around the world for a variety of amazing careers. Forbids discrimination in hiring. the payroll register, employees' earning record, and accounting system entries the purpose of the net pay and check number columns in the payroll register is to Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew My Library Discovery Institutions Silver Creek High School (Colorado) Southern New Hampshire University Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). B) Payroll register Identify distinctive compensation plans. A) $1,582. A company may occasionally print manual paychecks to employees, either because of pay adjustments or employment terminations. Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. 3. & \text{ } & \text{ }\\ Issuanceofbonds. Learn how we can make your work easier. \text{12. \text{8. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? FUTA was designed to ensure that workers who are covered by pension plans receive benefits from those plans, Under ERISA, vesting conveys to employees the right to share in a retirement fund in the event they are terminated before the normal retirement age, Under ERISA, if there is a pension plan, every employee is eligible after reaching age 21 or completing one year of service, whichever is later, ERISA provides for full vesting of the employer's contributions in 3 years or gradually over 6, The total cost of workers' compensation insurance is borne by the employees, Worker's compensation insurance premiums for employers vary according to the different degrees of danger in various classes of jobs and the employers' accident experience rate, Workers' compensation benefits are paid directly to the employer, Only one state has passed a law to provide disability benefits to employees absent from their jobs due to illness, accident, or disease not arising out of their employment, The requisition for personnel form is sent to the Payroll Dept. Listed below are several transactions. (You may C) Employee earnings record Administrating the state unemployment taxes. Saleofequipmentforanotereceivable. department. A) Credit $8, Who is covered by the Walsh-Healey Public Contract Act? Does every state have both federal and state unemployment laws? C) It must remain in balance at all times. Access the definitive source for exclusive data-driven insights on todays working world. D) Credit $. Issuanceofcommonstock. Payroll register and employees' earnings records are important payroll accountant tools Tracking of governmental liabilities Yields the data needed for financial reports Provides information for decision-makers about costs and company profitability Accounting system entries record all payroll-related activity A) Debit R. Sanders Capital, $250,000; Credit Cash, $250, Union Dues payable 227 4,683. Purchaseofinventory. expenses In January 2023 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2022. You face specific challenges that require solutions based on experience. How are employees who do not have bank accounts paid by an employer who uses an electronic fundstransfer system for payroll. Wages and salaries payable 226 ??? Every state imposes a state unemployment tax on employers in their state. & \text{ } & \text{ }\\ B) It is an individual register maintained for each employee, listing of all the payroll information. & \text{ } & \text{ }\\ C. ERISA establishes minimum vesting schedules that protect the workers' benefits. the total incomes of the firm and decrease the net income of the firm. \end{matrix} The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. Define hours worked. B) The income statement A magnifying glass. A) Form W- 9. tax Remittance on February 15? It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. var d=new Date(); document.write(d.getFullYear()); ADP, Inc. Find the package that's right for your business. Security taxes? Your sister currently uses 1,700 minutes and sends 1,600 texts each month. 1. These entries are then incorporated into an entity's financial statements through the general ledger.

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