True (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. staffing pr income projections, connects directly to the employee's earnings records. FICA Taxes Payable-HI Social Security tax What is the original entry point for payroll information into the accounting system? Payments to sales taxing authorities E) FUTA Tax Expense- FUTA Taxes Payable, 14. True The general journal entries will be in what order Vacation Benefits Payable is credited. a percentage of the previous week's net payroll. A) True Payroll Taxes Additionally, information from the payroll register is used to complete payroll entries in the General Journal a.To prohibit discrimination on the basis of age in the employment practices of employer. True or False: In each pay period, the payroll information for each employee is recorded on his or her employee earnings record. Did you prepare tax deposits and have them checked for accuracy? The total amount earned by all employees for a pay period is a ____. (C) W-3 Employees FIT Payable $987.00, ($1,534.78 + $358.94 + $987.00) = $2,880.72. 480.58 Payment of statutory withholdings In this case, "J" means that the original entry may be found in the General Journal, A relationship, specifically financial, built on trust between a trustee and a beneficiary, any unpaid liabilities will be reported in the current liability section. The purpose of a labor report is to do what? expenditures or expenses y=100(1e0.462t). (D) state unemployment tax owed. b. all employers are now mandated to contribute at least 2% of gross wages to an employee's retirement account. Jacobs Company borrowed $10,000\$ 10,000$10,000 on a one-year, 8 percent note payable from the local bank on April 1. Allocate employee expenses to specific departments. 30 seconds . Journal entry and page number. (D) Total Deductions column. A distribution column in a payroll register separates payroll expenses into classifications such as FUTA, SUTA and net payroll. create the need for more entries. 6. Are the tax returns and remittances approved and signed by the appropriate parties? $845.00 - $364.42 = $480.58. c. What is the percent of definitely responses in each age group? (C) gross earnings. Reconcile the difference in operating income based on theoretical capacity and practical capacity with the difference in fixed manufacturing overhead included in inventory. Overtime pay is paid for hours worked in excess of eight hours per day. remove the accrual from the account balances. -current balance in the payroll account (B) IRS Form 941 (8), True or False: Some employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes on the next banking day. 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. The withholding allowances of an employee affect (A) social security tax withheld. Identify some of the groups of users. A payroll accrual would be T F, In the case of multiple wage attachments, a garnishment for a student loan has priority over any E) FUTA Tax Expense- FUTA Taxes Payable, 19. account Which of the following accounts would appear on the balance sheet? Liabilities = Amounts or services owed by the company a.The Federal Unemployment Tax Act (FUTA) d. It allows payroll employees to create ghost employees . (p. 378), The payroll journal entry is based on the totals of the payroll register (A) Total . Multiple choice question. CostsincurredduringtheyearEstimatedcoststocompleteasof12/31BillingsduringtheyearCashcollectionsduringtheyear2021$300,0001,200,000380,000250,0002022$1,575,00001,620,0001,750,000. Apart from the recording of payroll and payment to employees, what other payroll related journal entries would be recorded? 2020, to record compensation expense, if any, in 2020. c. Prepare the entry on December 31, 2020, assuming that all 150,000 SARs are exercised. Study with Quizlet and memorize flashcards containing terms like The _____ is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period. debit to expense, credit to liability. -bank reconciliation. Multiple choice question. Multiple select question. 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%). unemployment tax payable-federal(multiply salary expense by .8%) earnings Unions b. the Payroll Manager is required by the Social Security Administration to e-verify in duplicate all the employees' social security numbers. Multiple choice question. B) $161.10 T F, 2. Multiple select question. Payroll costs represent an expense of the business. C. The employee completed the current version of Form W-4. 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: When employees actually use their vacation time c. affect the cash account. Multiple choice question. If employees must contribute to the state unemployment fund, this deduction should be shown in the payroll tax entry. Ways the general ledger is different from the general journal include: -current transaction in the payroll account c. the "Vacation Benefits Payable" account is credited. Balances in the general ledger payroll accounts are used in payroll reports d.12. -Marital status State unemployment tax A debit to the employees' FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages. debit to cash, credit to liability. c. Vacation Benefits Expense is debited, and Vacation Benefits Payable is credited. (D) January 31 of the following year. \text{Normal capacity utilization} & \text{232.558} & \text{units}\\ What changes should be included in the employee earnings record? Write your answers in simplest terms. True We reviewed their content and use your feedback to keep the quality high. For each choice of denominator level, the budgeted production cost per unit is also the cost per unit of beginning inventory. Multiple select question. When a dividend is received from the affiliate. (C) special purposes account. State unemployment tax. b. C) Wages Expense Entries to the general ledger will post amounts in the first pair of debit or credit columns: \text { Cash collections during the year } & 250,000 & 1,750,000 d.Only a self employed individual. A) True Production supervisor -Entering the transactions in the general ledger. Federal Income Tax 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. Payroll Register, Employees' Earning Records, and Accounting System Entries, Payroll register and employees' earnings records are important payroll accountant tools T F, 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. is used to record Workers' Compensation premiums paid by the company. Owners' Equity \text{Total budgeted fixed manufacturing costs} & \text{\$ 3.000.000}\\ (C) IRS Form W-3 Payment of voluntary withholdings A) True bottles of juice cocktails? union negotiations. The typical overtime rate is $5.00 more than the regular hourly rate. -journal entries to post backward. Payroll records serve as backup for . E. FUTA Tax Expense medicare tax payable (1time) following except: T F, For child support garnishments, tips are considered part of an employee's disposable earnings. -when payday is before the end of the month. d. What age group is most likely to purchase the product? (D) none of these. Did you update the employees' earning records? determined by: D) a percentage of the previous week's gross payroll. B) using the same amounts as the prior month's adjustment. \hline \text { Costs incurred during the year } & \$ 300,000 & \$ 1,575,000 \\ department breakdown of labor cost, What can cause a journal entry to post on only one side (either debit or credit)? -debit state withholding $1,234, The second set of debit and credit balances in a general ledger will: What information is on an employee earnings record? The balances in the General Ledger accounts form the foundation of financial reports. The employee's _____ ____ connects accounting and human resource records, Earnings records are supporting documents for, The payroll accountant may perform the following duties. Additional liability accounts for accrued salaries, accrued hourly wages, accrued holiday pay, and accrued paid time off could also appear, depending on the timing of the end of the period and the types of employees and benefits with which the company operates, A report that contains details about the number of hours worked and wages paid to employees, designates where the labor is used within the company What are the arguments for giving separate accounting recognition to the conversion feature of debentures? Multiple choice question. The purpose of a labor report is to do what? (C) a liability account What is the opportunity cost of the machine when we analyze the alternative to produce 12 oz. Study with Quizlet and memorize flashcards containing terms like . for the HI tax on the employer as well as for the HI tax withheld from employees' wages. True False, The Form 940 is the source document for all employee payroll journal entries. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. c. It facilitates accuracy in employee personnel records. (C) yearly SUTA taxes expense Payment of voluntary withholdings, True or false: The general ledger is the point where information gets entered into the accounting system database. B) False, 7. state income tax expense (B) federal income tax withheld. and an employee earnings record? -Employee contributes to United Way The time of peak efficiency is the time when the learning rate is maximized. completing the journal entry to record the payroll. A) True employee review. Multiple choice question. NALS: Ch. a.To prepare period reports and complete Form W-2 for each employee b.To complete Form W-2 for each employee c.To prepare period reports and complete Form W-2 for employer d.To prepare period reports e.To complete Form W-2 for employer, Which basic records . \end{array} -billable and nonbillable time C) $50.70 b.The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. Suppose the learning rate is Payments to sales taxing authorities Tags: Question 11 . There are no price, spending, or efficiency variances. salaries and wages expense. Denominator-level choices, changes in inventory levels, effect on operating income. other garnishment.. Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus, Research Methods (Lecture 7): Multi-factor Ex, Prior department costs transferred in from the Molding Department. bring the accountant to the related entry in the general journal. -current entry amount per account type d.All employees of companies with federal agency contracts. FUTA taxes payable False, 27. when payroll spans two months. Multiple choice question. A) True Employee taxes The account "Workers' Compensation Insurance Expense": T F, The employer keeps track of each employee's accumulated wages in the employee's earnings record. cash basis accounting A payroll accrual occurs Payroll transactions are recorded in the General Journal and posted to General Ledger accounts. A) Garnishment for child support payments (b) The second group will assess whether Tipton and Seferi can assert a defense by claiming that they did not know that the workers were unauthorized aliens. (D) W-4. Business managers use accounting entries to inform their decisions (C) FUTA earnings a.They must disclose to the job applicant that they are seeking an investigative report. Show your work. Union Dues. B) Payroll Taxes- Cash Maple is a behaviorist, he would MOST likely believe that the cause of a child's disruptive behavior in school is the result of what? Automated entries, Identify the users of financial statements. -by posting reference. b.The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. The following information was obtained for the Assembling Department for the month of September. Which amounts on the payroll register reduce Federal withholding tax but are not deducted for FICA tax computations? Labor reports for more than one year could provide: seasonal labor requirements Employee regular earnings are calculated as (A) regular hours times regular rate. (B) quarterly chart of accounts. 7 and 8) 141 terms. C. pay period. (B) January 1 of the following year. If Dr. Douglas Toys is a manufacturer that applies the weighted-average process costing method to account for costs of production. - The date of the transaction is attached. Which column exists in the employees' earnings records but not in the payroll register? The process of transferring amounts from the general journal to the general ledger is called posting. (C) a memorandum. Wages expense, On which accounting reports would payroll-related assets appear? Psychologists refer to the graph of y=f(x)y=f(x)y=f(x) as a learning curve and to f(x)f^{\prime}(x)f(x) as the learning rate. The employee earnings records form the link between the ____ and ____ _____ departments. (A) unemployment taxable earnings. (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. Past-DueCategory0-30days31-90daysOver90daysAccountsReceivableTotal$22,48036,54015,330PercentageUncollectible6%17%25%. B) False, 5. D. all of the above. liabilities or liability, Apart from the recording of payroll and payment to employees, what other payroll related journal entries would be recorded? (B) taxable earnings. General ledger -Pay rate, In financial accounting, the fundamental accounting equation is. A payroll method in which the employee does not handle the paycheck; payment is made by the employer directly to the employee's bank using EFT. \end{array} (B) liabilities. Wages Expense Using an automated entry, the payroll accountant would record transactions through True C245. Allocate employee expenses to specific accounts payment to employee based on a stated percentage of revenue. A) completing forms W-2. Did you transmit remittances for the mandatory and voluntary deductions? FUTA Taxes Payable $74.26 Terms in this set (20) The period covered by a salary payment is a ____. a. all the data must be both manually and digitally centered and checked, to ensure that the system is functioning properly. How is your target country ranked by Transparency International, Drugs in the bloodstream The concentration yyy of a certain drug in the bloodstream ttt hours after an oral dosage (with 0t150 \leq t \leq 150t15 ) is given by the equation, y=100(1e0.462t)y=100\left(1-e^{-0.462 t}\right) Which of these accounts shows the total gross earnings that the employer A) True Government officials Paid cash for liability for employee income tax, $693.00; social security tax, $770.04; Medicare tax, $180.09; total, $1643.13. Lowest 7 percent. Have you included any other mandatory deductions? In each pay period, the payroll information for each employee is recorded on his or her employee earnings record. He is paid time-and-a-half for hours over 40 and his pay rate is $17.90/hour. withheld and the other payroll deductions in effect before the tax levy was received. state income tax expense determining market price for company products -chronological. D. -before journal entries are 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. a. voluntary contributions to IRAs are no longer allowed in an employee retirement plan. 401(k) contributions expense debit card based accounts. c. are the earnings remaining after withholding income taxes and other amounts required by law. 2 Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming this project does not qualify for revenue recognition over time. True Although the garnishment would be deducted from the employee's pay, the business is responsible (liable) for remitting the deduction to the creditor. Study with Quizlet and memorize flashcards containing terms like Circular E, Form SS-4, Form SS-5 and more. A. b.Executive employees who are 65 years or older and have held high policymaking positions during the two-year period prior to retirement -Each entry will be on one side per account. 26. \text{Production } & \text{240.000} & \text{units}\\ (2), True or False: The employer social security tax rate is different than the employee social security tax rate. In many payroll systems: A separate record of each employee's earnings, used to complete W-2. -current amount of reduction to the payroll account What is always true about the General Ledger? salaries and wages payable. The state lottery offers you the following (after-tax) payout options: Option#1:$12,000,000afterfiveyearsOption#2:$2,150,000peryearforfiveyearsOption#3:$10,000,000afterthreeyears\begin{array}{lll} b.Employees who work for vendors who provide legal services to any agency of the United States, provided the minimum contract amount is $15,000. They must pay the employees with actual dollars. b. When the company pays for the state taxes withheld from the employee the entry would be A payroll register is a record of employee hours worked, gross pay, net pay, deductions, and payroll date for a pay period. Federal Income tax The Form 940 is the source document for all employee payroll journal entries. Each employee name is listed in a payroll register along with (A) employee number. The account balances form the basis for accounting reports. Union Dues. b. are only necessary when employees are paid in cash at the end of the year. 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. 7. (D) in all 50 states. Where will entries for payroll show up in the income statement? Tracking of governmental liabilities General ledger entries are made ______ (after/before) general journal entries. a percentage of the previous week's gross payroll. 401(k) contributions expense a percentage of the previous week's gross payroll. When the company pays for the state taxes withheld from the employee, the entry would be: Entering transactions in the general ledger. a. the expense has already been recorded. The financial investment and any accumulated profits or losses of the owner of a firm. Computer glitch Each entry will be on one side per account. General journal Multiple select question. true or false:Qualified retirement plans are approved by an act of Congress. D) Union dues withheld What is the second line of the general journal entry used for? true or false: Total earnings are sometimes referred to as net pay. Did you journalize and post the employees' payroll transaction? (p. 390), To record the payment of federal unemployment tax, the account debited is a.The employer 20. 9. c. his/her applicable annual standard deduction based on marital status plus the number of exemptions claimed on Form 668-W. -Transactions from the general journal are posted to individual accounts. Missed Exam ?'s. Shared taxes d. Vacation Benefits Payable is debited. Payment of voluntary withholdings, The ___ ____ column in the General Ledger is a combination of letters and numbers, The use of reversing entries is: Entering the payroll journal entry. Federal income tax is withheld from employee earnings (A) only in those states electing to do so. (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. -Year-to-date earnings C) using the wages of the salaried workers only. Assets d. are the earnings paid for optional employee benefits. -include all descriptions in the general journal. 1. Wages and taxes expenses 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. A business form used to record details affecting payments made to an employee is a(n) (A) employee earnings record. and more. 5. When asked if they would purchase the product, the people gave these responses: a. d.None of these choices are correct. regular earnings plus overtime earnings. Question: Why is it important for a firm to use both a payroll register and an employee earnings record? expensed in the next month. The contribution margin from the additional sales of 100% juices would be$90,000. (C) total hours plus overtime rate. E. Wages Expense What taxes would be monitored for maximum withholding amounts through the payroll register? disposable earnings. b. the standard deduction of the taxpayer. and an employee earnings record? Cash E) 26.85. C. Payroll Taxes 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. Wages Expense is debited and Cash is credited. completing Forms W-2. a.25 b. the standard deduction of the taxpayer. b. the account "Vacation Benefits Expense" is credited. Assets area c. It facilitates accuracy in employee personnel records. true or false: When an employee's earnings exceed the tax base, no more social security tax is deducted. salaries and wages payable. (D) overtime hours minus overtime rate. -bring the accountant to the related entry in the general journal. account balances form the basis for accounting reports; general ledger account balances aggregate data to determine payroll costs. The employee earns tips. Calculate the amount of cash payments Jacobs was required to make in each of the two calendar years that were affected by the note payable. (1), True of False, Multiple Choice, and Journalizing, True or False: The payroll register provides all the payroll information needed to prepare a payroll. -when entries increase the account balance It uses absorption costing based on standard costs and reports the following data for 2017: Theoreticalcapacity300unitsPracticalcapacity279.070unitsNormalcapacityutilization232.558unitsSellingprice$50perunitBeginninginventory40.000unitsProduction240.000unitsSalesvolume260.000unitsVariablebudgetedmanufacturingcost$10perunitTotalbudgetedfixedmanufacturingcosts$3.000.000Totalbudgetedoperating(non-manuf.) Entering the transactions in the general ledger. Hintley Duck Blinds Ltd received a federal tax levy garnishment for their marketing manager, Joanna Mallard, in the amount of $8,523.25. 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. accrual accounting \text { Estimated costs to complete as of } 12 / 31 & 1,200,000 & -0- \\ -Transactions from the general journal are posted to individual accounts. (A) a revenue Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each accounting period. B) False, 18. (C) salary expense. Recording expenses only when paid is an example of: Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA taxes? A) True c. it is not necessary to even enter the data since the time-keeping device synchs with the payroll register, employee earnings record, paychecks, etc. T-accounts. the need for increased or decreased staff within a department, determining market price for company products, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. d.Neither of these choices is correct. FICA Taxes c. a credit to Vacation Benefits Expense = $1,178. The payroll register is used by employers in completing Forms W-2. -credit state withholding $1,234 The Accumulated Earnings column of the employee earnings record (A) shows net pay for the year. Wages and cash expenses (A) December 31 of the current year. (6), True or False: The tax base for Medicare tax is the same as the tax base for social security tax. Disposable earnings: The payroll register connects directly to the employees' earnings records. a. A qualified retirement plan that provides most individuals with a deferred federal income tax benefit. Credit Protection Act. Record used in preparing employee's W-2. Which of the following is not an expense of the employer? Highest 50 percent c. Highest 5 percent, d. Highest 80 percent e. Lowest 10 percent f. Middle 50 percent, g. Lowest 93 percent h. Middle 95 percent i.
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