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expense 522 $ 12,987. How to do payroll accounting: 7 steps At first glance, payroll accounting can be scary. 1. A payroll register lists all basic information related to employee take-home pay. The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. What does the Civil Rights Act of 1954 cover? 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? For classifying the gross wages and salaries according to the nature of the wage and salary expense. Verify the date and enter General as the reference. B) As equity Fair Labor Standards Act We have credited a liability account for each of the tax amounts. Book the entry on the date paychecks are distributed. How do accrued, but not paid, wages appear on the balance sheet? The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. What is your sisters total cost under each of the two plans? Payroll Test #1 Flashcards | Quizlet Subjects Expert solutions Log in Sign up Payroll Test #1 Term 1 / 66 Does every state have state unemployment laws? Neither The Balance Sheet Nor The Income Statement. Issuance of common stock.} A) $2,253. 33. Want more exclusive business insights like this delivered to your inbox? Discover how easy and intuitive it is to use our solutions. Does FLSA require all employees to be paid weekly, biweekly', monthly? Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO. A) It is employee labor that may be billed to customers. chronologically. Indirect labor usage. The W-2 provides all of the information required by the Affordable Care Act. What options might Hazel consider if the (You may select more than one answer. They must disclose to the job applicant that they are seeking an investigative report. Payment of a long-term note payable.} 65. What is your sisters total cost under each of the two plans? Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. 2. Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. This will decrease 220 Only "A payroll register" and "The employee's earnings record" are correct. ls the FUTA tax used to pay unemployment benefits? At ADP, security is integral to our products, our business processes and our infrastructure. I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." E. All are provisions of FLSA. Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. Prior year's earnings < Prev 18 of 40 . Basic payroll register templates can be found online or created in programs like Excel. After recording this entry, reverse it at the beginning of the following accounting period, and then record the actual payroll expense (as just described under the "Primary Payroll Journal Entry" section whenever it occurs. 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. A) $399,472. so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. 13. Which report contains employer share tax expenses for a period? What are the General Journal entries that should appear on each pay date? (You may select more than one answer. & \text{ } & \text{ }\\ Oct 27 Wages and salaries payable 226 202,671. Authorize a power of attorney. Using the accounting equation, determine the following amounts: a. Owners equity as of December 31, 2013. B) It is always expressed as assets = liabilities - owners' equity. 30. A. ERISA applies to pension and welfare plans established by any employer engages in commerce. Gross wages of $500.00 + employer's portion of FICA $38.25 ($500.00 X employer rate of 7.65%) + unemployment tax of $24.00 + worker comp insurance of $5.00. Ring up sales and take payments in style with the sleek touchscreen Register device Make it mobile Every Register comes with a PAX A920 terminal to use as a mobile credit card reader Add on wireless POS hardware Complete your hardware suite with Bluetooth barcode scanners, receipt printers and cash drawers Hardware that won't hold you back Define hours worked. For example, there may be deductions for 401(k) pension plans, health insurance, life insurance, vision insurance, and for the repayment of advances. check mark For a correct answer and double click the box with the question mark to empty the What is the primary purpose of a labor report? 7. C) It is a report designed for external stakeholders. 1. What is the amount of the 401(k) contributions for the pay date? These details include the employee id number, the department they belong, their job profile, etc. Purchaseofrentinadvance.4. date: Oct 27 Wages and salaries expense 522 $298,384. the health Insurance is qualified under Section 125? D) Credit $. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. Required: 1. February 7 Journalize the employer . 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. Free True False Q03 Computing the sum of rows and columns is known by the term Multiple Choice Q04 Where is one place that information from the payroll register would not be transferred? Exempt salaried employees are often paid for their work right up to payday. B) The account appears fourth in the list of liability accounts. C) proof of payroll deposits 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? Purchase of inventory.} The agreement also states that the two weeks of vacation shall be taken any time in 2023 and the amount paid will be 80 hours multiplied by the employee's rate of pay at December 31, 2022. 10. B) Posting Answer : Option E, Prior Years Earnings Explanat . \text{10. Department of branch 4. Forbids discrimination in hiring. Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. D) Personnel file Jan 31 J4 420 1, Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). The employees gross wages for the past week are. The payroll register for Nazir Corporation contained the following totals at the end of July: wages, $139,125; federal income taxes withheld, $35,582; state income taxes withheld, $5,863;. Which of the following is NOT part of the social security program? When the employer pays the employee in 2023 for the vacation earned in 2022, what account will the company debit? Were reimagining what it means to work, and doing so in profound ways. & \text{ } & \text{ }\\ 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? Security taxes? A payroll register can also . ERISA ensures that workers covered by private pension plans receive benefits from those plans in accordance with their credited years of service with their employers. Report changes to your business. Saleofequipmentforanotereceivable.10. total Does every state have state unemployment laws? How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. C. FLSA C) As expenses Explain the use of the "Cumulative" column in the employee's earnings record. Union Dues Payable-liability Jun 23 Wages and. 12. May criminal background checks be used by all employers for any person? \text{12. Collectionofanaccountreceivable. 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. C) It must remain in balance at all times. Paymentofalong-termnotepayable.13. Entitled to retirement program even if you're no longer working there. Question: Continuing Payroll Problem, 6B: Chapter 6 You have almost completed the Olney Company's Employee Payroll Register for the pay period ending January 8, 20--. The town is considering an ordinance that would prohibit putting Upload your study docs or become a Course Hero member to access this document Continue to access Term Winter Professor N/A Tags SUTA Taxes Payable-liability B. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? On which income statement will the state unemployment tax expense appear under accrual accounting? Continuing Payroll Problem-B OLNEY COMPANY, INC. Medicare tax $ 390. Copyright 2023 AccountingCoach, LLC. Your portfolio has three asset classes. department. A) It is the fourth entry in the General Journal on that date. Learn more about the senior executives who are leading ADPs business. Federal withholding tax payable 220 $ 50,725. the box with the question mark to produce a check mark for a correct answer and double click Period covered by the payroll and the pay date. D) Transcribing The total of each distribution column shows the total amount of that department's wage expense. 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. Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. B) $2,572. 1. DEBIT CREDIT DEBIT CREDIT This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Deductions. B) By dollar amount Social Security tax payable ??? 221 D) It is non-employee labor that the company must pay. B) Equity Besides payroll information, the payroll register contains ________. True False. Under FLSA, what is the current minimum wage? Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. D) the employee's name, social security number, and address In Philadelphia, Pennsylvania, most workers are subject to three income taxes upon their earnings - federal state and city. 4. 16. Social Security tax payable 221 17,980. Total Earnings 9. Use the information in the previous exercise to prepare journal entries for the following events in May. Discover what others say about us. \ D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. Manage labor costs and compliance with easy time & attendance tools. These entries are then incorporated into an entity's financial statements through the general ledger. 40. Feb 15 J must it do to recognize the liabilities and expenses? expenses are, the lower the profitability will be. 3. D) information about the firm's liabilities E. OASDI. In cases where both Federal and State regulations cover the minimum wage for the same employee, the high of the two rates is always used as the standard minimum wage. & \text{ } & \text{ }\\ 63. 401(k) contributions payable 223 454. on taxes like FICA, FUTA, and SUTA? How does the payroll register connect with the employees' earnings records? Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. C. National Origin Medicare tax payable 3,197. Issuanceofbonds. May an employer terminate an employee for lying on an application form? D) Credit $30. \text{5. e. None of the above. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do 7. An employee is hired at a pay rate of $10 per hour. Current period taxable earnings for FICA taxes are as. Another important step in maintaining a payroll register is to perform audits. C) Debit Revenue, $250,000; Credit Cash, $250, Withholding" and "Earnings subject to FICA"? Using the payroll register, compute the employee gross pay and net pay using 35 hours as the standard workweek for all employees except Mary Shangraw, who works 20 hours per week and receives overtime for any time worked past that point. B) the total gross pay, deductions, and net pay during the period Savings bonds payable 227 1,850. B) Both documents contain information about the employee's address and job title. D) One side of the equation must equal zero. The amounts needed for the payroll entries in the journal come from the employee's earning records. Single click the box with the question mark to produce a check, In the following payroll transaction, what is the amount of the net pay? B) It is an individual register maintained for each employee, listing of all the payroll information. Single click the box with the question mark to produce a check mark for a correct What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? Which act covers employee pension and welfare plan.? Issuance of bonds.} 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. Records and the General Journal. A) Because payroll represents an asset and an income of the business. incomes are, the higher the profitability will be. var d=new Date(); document.write(d.getFullYear()); ADP, Inc. Find the package that's right for your business. Can employees view documents in their files that are marked confidential? C) It is non-traceable labor that a company must absorb as overhead. Saleofequipmentforcash. Small, midsized or large, your business has unique needs, from technology to support and everything in between. D) The same as the chart of accounts Identify distinctive compensation plans. & \text{O} & \text{CO}\\ A) Net pay Click the card to flip Definition 1 / 52 True Click the card to flip Flashcards Learn Test Match Created by Ziera117 Plus Terms in this set (52) each option. D) The transaction appears on page four of the General Journal. Color Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month? Direct materials usage. 54. 15. DEBIT CREDIT DEBIT CREDIT What information is commonly provided by a job-seeker on the application for employment form? one answer. It records payroll record on each employee separately. Journal entries? Enchanted Creations has the following data in its Federal withholding tax payable General Ledger Medicare tax payable 222 ??? Employee SIT Payable-liability Marital status & number of withholding allowances 6. \text{9. All rights reserved.AccountingCoach is a registered trademark. Application of overhead to goods in process. A) Employee earnings record The payroll register contains ________. Questions pertaining to religion, gender, national origin, or age are allowed on application forms when these are bonafide occupational qualifications for a job. ADP and the ADP logo are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? A credit of $16,250 is recorded on the June 25 Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. Why is it important to have columns on the payroll register title "Earnings subject to Federal Payroll-Operating expense-liability Federal withholding tax $ 3,570. See how we help organizations like yours with a wider range of payroll and HR options than any other provider. 58. Which of the following represents the missing Social Security and Medicare taxes, assuming that. on the first day of the next financial period? A. There may be an accrued wages entry that is recorded at the end of each accounting period, and which is intended to record the amount of wages owed to employees but not yet paid. Saleofequipmentforanotereceivable. 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. 14. \text{3. It Requirements: 1. ls the payroll register used in preparing the Form W-2? E. Highest-paid 10% of their workforce. below deck mediterranean 2022 cast. D. All employees earning the minimum wage. Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? Report new employees or independent . 2. A) Medicare tax C) A debit balance will decrease the expenses of the firm's income statement. What entry should appear in the General Ledger to reflect the A) A debit balance will increase the expenses of the firm's income statement. D) It must wait until the next financial period to record the payroll data. C) Labor reports Sale and delivery of finished goods to customers for cash (record unadjusted cost of sales). A) Net pay U.S. government T-bills account for 45%45 \%45% of the portfolio, large-company stocks constitute another 40%40 \%40%, and small-company stocks make up the remaining 15%15 \%15%. 41. Union Dues payable 227 4,683. FIT Payable-liability D) Health insurance payable B) $15,298. 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. 2. Payroll journals are records of all payroll transactions. Which of the following is not a provision of FLSA? May 14 Wages and salaries payable 226 117,334. DATE DESCRIPTION POST REF. C. All employees under the age of 30. At ADP, we say that were Always Designing for People, starting with our own. Paymentofalong-termnotepayable. Paymentofanaccountpayable.15. On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. Saleoflandforcash.3. D) Employee pay recording and employer share payroll taxes recording Purchaseoftreasurystock. d. At least seven homes have large-screen TVs? At ADP, we believe sports and business both require the right approach. D) $1,875. This account would be credited for the amount paid. Is it neccessary for an employer who is subject to FICA and FUTA taxes to keep a separate expense account for the taxes under each act? The employers total expense for Marys employment during the week is. Does FLSA say how often employees need to be paid? Purchase of rent in advance.} Rate of pay 8. Federal income tax payable 11,955. 2. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. Paymentofemployeesalaries.OCO2. statement? How will payroll deductions from employees wages for their portion of 401K plans be recorded? lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? A) Employee pay accrual and employee pay disbursement An employer has computed the following amounts for its employee Mary during a week in January: gross wages $500.00; FICA tax withheld $38.25; federal income tax withholding $67.25; State income tax withholding $20.00; unemployment taxes $24.00; worker compensation insurance $5.00. 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. Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) What are the General Journal entries that should appear on each pay date? It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. Cross), Give Me Liberty! 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. Payroll Register This is the first task to completing Olney Company's payroll register. A) By order of importance account: Social Security tax payable ACCOUNT NO. What is the term for transferring data from the General Journal to the General Ledger? mark for a correct Answer and double click the box with the question mark to empty the box for $3,825 of employee withholding ($50,000 X 0.0765), Exempt Salaried Employees Paid Semi-monthly. ERISA provides for full vesting of the employer's contributions in three years or gradually over six.