Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Federal withholding tax payable 220 399,472. Jan 19 Wages and salaries payable 226 8,134. How does the FIFO method different from the weighted-average method? CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. A) Social Security tax, $204; Medicare tax, $792. Basic payroll register templates can be found online or created in programs like Excel. D) Credit $30. Federal withholding tax payable 220 $ 50,725. Paymentofalong-termnotepayable.13. What portions of an employee's wages are exempt from a federal tax levy. Copyright Use the following information for Questions 19 - 20: \text{13. Purchase of inventory.} D) It may contain whatever accounts the accountant wishes to include. The lower payroll Get inspired to begin transforming HR at your company. D. All employees earning the minimum wage. Requirements: 1. False. What is your sisters total cost under each of the two plans? During the past week, the employee worked 50 hours. To rule the payroll register means that the payroll accountant establishes procedures about the payroll register. Learn how we can make a difference by joining forces to improve the success of the clients we share. B) It should make a note to create the reversing entry at the end of the next financial period. Which of the following acts prohibits discriminating in hiring, firing, promoting, compensating, or in nay other condition of employment on the basis of race, color, religion, gender, or national origin? Who is covered by the Walsh-Healey Public Contract Act? Savings bonds payable 227 1,850. 54. Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). The employee's earnings records is used in preparing the employees' W-2 forms. the box With the question mark to empty the box for a wrong answer. B) Social Security tax, $792; Medicare tax, $204. 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) Learn how we can tackle your industry demands together. Which of the following acts levies a tax on employers and employees that is credited to the Federal Old-Age and Survivor's Trust Fund and the Federal Disability Insurance Trust Fund? Based on the following data, prepare the appropriate journal entry when paying employees: Total wages earned were $8000 Sets minimum wage. 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. \text{4. 64. When the firm remits its health insurance premium for this pay date, what is the General Journal C) Employee earnings record C) The balance sheet and year-to- date earnings. Upload your study docs or become a Course Hero member to access this document Continue to access Term Winter Professor N/A Tags C. FLSA Social Security tax payable ??? Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? Information available through a secured web sit, kiosk, or interactive voice response system. Explain the major provisions of the Fair Labor Standards Act. C) Debit Revenue, $250,000; Credit Cash, $250, A) the beginning and ending dates of the pay period D) $1,875. Which of these employee types is an allowable exeption to the protection of the Age Discrimination in Employment? C) Form W- What is true about the trial balance? 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. 15. Single click on taxes like FICA, FUTA, and SUTA? Does the ADEA quit protecting employees after the age of 70? 10. Transaction1. Social Security tax $ 1,670. DEBIT CREDIT DEBIT CREDIT All nine have large-screen TVs? : an American History (Eric Foner), Psychology (David G. Myers; C. 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How can the information shown in the employees' earnings record be used? A. B) Credit $1, Employers also use it to: While all of these functions can be accomplished manually, dedicated payroll software provides information at the click of a button, making reporting fast and simple. Saleoflandforcash.3. For fill-in-the-blank questions, press or click on the blank space provided. B) Debit $4, Vacaction Benefits Payable- liability. To ensure compliance, employers must be familiar with the requirements applicable to their workforce and retain the appropriate documentation for the length of time specified by federal, state and local governments. Gross wages of $500.00 less withholdings of $38.25 for FICA and $87.25 for federal and state income taxes. C) Credit $4, Legalor equitable procedure by which a protion of the wages of any person must be withheld for payment of a debt. The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). A payroll register does not include: Multiple Choice Pay period dates. Administrating the state unemployment taxes. 7. How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. \begin{matrix} A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. Want more exclusive business insights like this delivered to your inbox? A) Net pay Issuanceofcommonstock.6. Answer : Option E, Prior Years Earnings Explanat . Does workers' compensation laws only relate to work-related incidents? D) Form 941 B. Health Insurance payable 224 8,375. Report changes to your business. Your portfolio has three asset classes. \text{3. 9. To prohibit discrimination on the basis of age in the employment practices of employer. D) Company website \text{1. These computations are shown in the Employee Payroll Register. B) It is employee labor that does not pertain to labor on customer jobs. incorrect.) Security taxes? \end{matrix} D) It is a report designed to be read by parties external to the firm. A) It allows managers to determine the effect of employee labor on departmental profits. 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? Make payments. D) the employee's name, social security number, and address Type an equals sign (=) to signal the fact that the cell contains a formula. B) By dollar amount How will payroll deductions from employees wages for their portion of 401K plans be recorded? Jul 1 Wages and salaries payable 226 113,562. D) Debit $8. A) It is the fourth entry in the General Journal on that date. 28. The employers total expense for Marys employment during the week is. (You may Quickly connect ADP solutions to popular software, ERPs and other HR systems. d. At least seven homes have large-screen TVs? Deductions. 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. Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? Vacation Benefits Expense-Operating expense Learn how we can make your work easier. If the expected returns are 3.8%3.8 \%3.8% for the T-bills, 12.3%12.3 \%12.3% for the large-company stocks, and 17.4%17.4 \%17.4% for the small-company stocks, what is the expected return of the portfolio? 66. (You may select more than Discover the latest Today at Work insights from the ADP Research Institute. period. 1. automatically graded as incorrect.) C. Restrictions the employment of child labor. What is The balance in the account? 2. Health Insurance Premiums Collected-liability B) Payroll register PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. 12. Paymentofincometaxes.9. Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month? 9. Step 2: Working Hours. Compute the employer's payroll taxes for the period. Collection of notes receivable.} The primary payroll journal entry is for the initial recordation of a payroll. a. Walsh-Healey Public Contracts Act Required: 1. A payroll register is the record for a pay period that lists employee hours worked, gross pay, net pay, deductions, and payroll date. 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. Apr 16 J23 16,495 32. 1. D. FMLA 14. What entry should appear in the General Ledger to reflect the each option. C) Garnishment A) Employee earnings record A) The total of the debits must equal the total of the credits. B) Payroll register Get exclusive business insights delivered straight to your inbox. & \text{ } & \text{ }\\ Next, click on the Insert Debit/Credit button, enter the first account number ( 12) or click on the pop-up Chart of Accounts icon to display a list for selection. A. ADEA With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. 401(k) contributions $ 1,115. Federal withholding tax $ 3,570. Under the Family and Medical Leave Act, what is the maximum number of weeks of unpaid leave that a covered employer is required to offer an employee whose spouse is seriously ill? Regardless of the format, payroll registers tend to follow the same basic structure. I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. business. 7. A) Credit $8, At ADP, security is integral to our products, our business processes and our infrastructure. Factory payroll costs in cash. Age 39. To which items is information from the payroll register transferred? What is the amount of the 401(k) contributions for the pay date? Wages Payable-liability under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. It records payroll record on each employee separately. A) It must credit the asset accounts for the appropriate payroll amounts. D) Employee pay recording and employer share payroll taxes recording entry? In other words, a payroll register is the document that records all of the details about employees' payroll during a period. 15. 401(k) contributions payable 223 ??? Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Elliot Aronson, Robin M. Akert, Samuel R. Sommers, Timothy D. Wilson, Fundamentals of Financial Management, Concise Edition. Its best practice to audit payroll every pay period. Using the accounting equation, determine the following amounts: a. Owners equity as of December 31, 2013. Comprehensive payroll and HR software solutions. HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Medicare tax payable 3,197. From best practices to advice and HR consulting. Employers can exempt the following employees from the Family and Medical Leave Act. What is the role of enhancing qualities in the conceptual framework? The payroll register contains ________. question mark Will be automatically graded as incorrect.) C) It is a worksheet that accountants use to ensure payroll accuracy. 41. 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? the total expenses of the firm and decrease the net income of the firm. A) Ledgering The entry to record vacations earned in 2022 will affect Vacation Expense on the 2022 income statement and Vacation Payable, a liability on the 2022 balance sheet. 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. Multiple Choice Q05 The other hourly employees receive overtime pay when they work more than 35 hours in one week. B) Debit Cash, $250,000; Credit Revenue, $250, E. OASDI. A) By order of importance 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. The Federal Insurance Contributions Act covers restrictions on the employment of child labor. Were reimagining what it means to work, and doing so in profound ways. Federal income tax payable 11,955. FICA (Federal Insurance Contributions Act). Payment of a long-term note payable.} Employers use the employee's earnings record in preparing ___. 2. According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. B) It depicts the ideal distribution of labor in a firm. B) Both documents contain information about the employee's address and job title. Health Insurance $ 950. 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 Which of the following is NOT part of the social security program? & \text{ } & \text{ }\\ Only "A payroll register" and "The employee's earnings record" are correct. Single click the box with the question mark to produce a check mark for a correct Copyright 2023 AccountingCoach, LLC. expenses are, the higher the profitability will be. tax Remittance on February 15? At a minimum, payroll registers help businesses: But thats hardly the extent of how beneficial a payroll register can be. The total of each distribution column shows the total amount of that department's wage expense. employees' payroll, one for the employer's share of the taxes. Continuing Payroll Problem-B OLNEY COMPANY, INC. View the full answer. 4. True, Besides containing the supporting data for periodic tax reports, the employee earnings record (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 What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? This will increase the Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? Any boxes left with a question mark will be 20. Its easier to keep accurate payroll records and run reports quickly with payroll software. C) proof of payroll deposits The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. Zipperle Company has the following payroll information for the pay period ending September 18, DATE DESCRIPTION POST REF. Loan to another firm.} Employee SIT Payable-liability 27. SUTA tax payable 9,481. Enchanted Creations has the following data in its Federal withholding tax payable General Ledger B) Because payroll represents an asset and an income of the business. Sale and delivery of finished goods to customers for cash (record unadjusted cost of sales). The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law. \text{7. A) Debit $1, C. ERISA establishes minimum vesting schedules that protect the workers' benefits. A) Net pay Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? 4. posted an additional $4,390 on its October 31 pay date. \text{10. 31. Collectionofanaccountreceivable.5. On which financial report will employer-paid portions of health insurance premiums be listed? 61. Many employers find a payroll register to be an indispensable part of their business because of its ability to help them keep both their payroll records and their budgets in order. Paymentofalong-termnotepayable. C) Labor reports Transfer of finished jobs to the finished goods inventory. below deck mediterranean 2022 cast. the box with the question mark to produce a check mark for a correct answer and double click \text{8. 56. box for a wrong Answer. They must disclose to the job applicant that they are seeking an investigative report. We have credited a liability account for each of the tax amounts. Paymentofemployeesalaries.2. 1. B. ERISA Didier and Sons had the following employer's share payroll tax general journal entry for the May 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. 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. What special accounts must usually be opened in the general ledger to record payroll tax entries? Collectionofnotesreceivable. Cross), Give Me Liberty! Deductions. Of the items in the following list, which one (s) should appear in a payroll register? Federal withholding tax payable 220 $ 2,207. Payroll Chapter 1 Flashcards | Quizlet Payroll Chapter 1 5.0 (5 reviews) Term 1 / 50 True Click the card to flip Definition 1 / 50 The current minimum wage set by the Fair Labor Standards Act is $7.25 per hour Click the card to flip Flashcards Learn Test Match Created by kittykiss Terms in this set (50) True B. ERISA requires each employer to establish a pension plan. A) The statement of owners' equity What is the current minimum wage under FLSA? C) It must remain in balance at all times. The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries. Entitled to retirement program even if you're no longer working there. Does every state have both federal and state unemployment laws? Raw materials purchases for cash. one answer. 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? & \text{O} & \text{CO}\\ This account is credited for the total amount of FIT with held each payday and is subsequently debited for the amounts paid to a depositary or to the IRS. A) $2,253. D) It is a report that becomes published with other financial reports. B) It is an individual register maintained for each employee, listing of all the payroll information. Discover how easy and intuitive it is to use our solutions. B) A debit balance will increase the expenses of the firm's income statement. D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? Which of the following is true of employee's earnings record? B) Employee earnings record True, A debit always decreases the balance of an account. Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. Attend webinars or find out where and when we can connect at in-person events. Laborers for contractors who furnish materials, supplies, articles, and equipment to any agency of the United States, provided the minimum contract amount is $10,000. 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. Payment of employee salaries.} D) Federal withholding tax payable The basic entry (assuming no further breakdown of debits by individual department) is: There may be a number of additional employee deductions to include in this journal entry. 59. \text{5. b. True, Employee earnings records form the link between accounting and the human resources When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger. Collection of an account receivable.} C) Payroll accounts do not appear on the trial balance because of their changeable nature. 21 Q09. A(n) ________ is a collection of cash and other items that are used in the operation of the Marital status & number of withholding allowances 6. True (California, New Jersey, New York & Rhode Island). chronologically. & \text{ } & \text{ }\\ Payroll typically creates an accrued liability for all of the following reasons except Because it is unnecessary to report amounts owed to employees for salaries or wages earned. B) tax remittance information Use the following information for Questions 15 - 17: Payroll registers generally are more detailed than payroll journals and include specific information about each employee. C) It is the fourth repetition of the same entry. Union Dues Payable-liability Dont take our word for it. C) Employee signature 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. account: Social Security tax payable ACCOUNT NO. Most office supply stores also carry books that are formatted specifically to record payroll information. See Answer. Period covered by the payroll and the pay date. Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. Hours worked. B) It must create an adjusting entry to recognize the payroll accrual. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). Time worked - regular & overtime 7. Records and the General Journal. E. Highest-paid 10% of their workforce. A. ERISA applies to pension and welfare plans established by any employer engages in commerce. C) Debit Health Insurance Payable $13,618; Credit Cash $13,618. It's useful for record-keeping in a business and has legal implications if not kept correctly.. A summary of all payroll activity is an excellent way to look at the payroll register report. A) Medicare tax < Prey 18 of 40 Pay period dates. This entry may be avoided if the amount is immaterial. Our online store for HR apps and more; for customers, partners and developers. The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. Read the latest news, stories, insights and tips to help you ignite the power of your people. 19. C) It is non-traceable labor that a company must absorb as overhead. Less than five have large-screen TVs? If a firm accrues the payroll due but not paid at the end of a financial period, what should it do In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. expense 522 $ 12,987. 4. 65. statement? Which of the following laws establishes the minimum wage? What information is commonly provided by a job-seeker on the application for employment form? A) Form W- D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 What is the effect of each of the following posting upon the assets, liabilities, and owner's equity of a company. Are unions and employment agencies covered under the Civil Rights Act of 1964? prepare the payroll register enter the information into the employee payroll records prepare paychecks and send them to paymaster for distribution to employees send a copy of the payroll register to Accounts Payable social security taxes income tax withholding payroll deductions in tax: Wages and salaries withholding taxes payable Use the information in the previous exercise to prepare journal entries for the following events in May. C) $12,576. A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. At December 31, 2022 the employee's pay rate was $15. 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;. \text{14. B. ERISA requires each employer to establish a pension plan. 3. B) Employee address ls Form l-9 completed only by employees born in outside of the USA? You can think of it as a summary of all the payroll activity during a period. the health Insurance is qualified under Section 125? How does a payroll accountant keep track of employee's year-to-date earnings for wage bases lf an investigative consumer report is used in an employment decision, does the employer need to tell the individual? incomes are, the higher the profitability will be. A) Debit R. Sanders Capital, $250,000; Credit Cash, $250, date: Oct 27 Wages and salaries expense 522 $298,384. What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? How are employees who do not have bank accounts paid by an employer who uses an electronic fundstransfer system for payroll. Collectionofanaccountreceivable. Calculate regular and overtime pay. Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. 55. This will increase Jan 31 J4 420 1, Q08. Recorded as a liability for the employer in the payroll entry. Switching payroll service providers made easy. The town is considering an ordinance that would prohibit putting McHale Enterprises has the following incomplete General Journal entry for the most recent pay TransactionTypeofActivityCashInfloworOutflow1. must it do to recognize the liabilities and expenses? the total expenses of the firm and increase the net income of the firm. (You may select more than one answer. This entry records the gross wages earned by employees, as well as all withholdings from their pay, and any additional taxes owed to the government by the company. During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. 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. Protection under the provisions of the Age Discrimination in Employment Act begins at what age?? Payroll-Operating expense-liability Saleofequipmentforcash. This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. 58. A) Employee pay accrual and employee pay disbursement Simplify and unify your HCM compliance processes. C) It designates where labor is used in a firm. NAME MARITAL STAT. Jeremy is single with two withholding allowances. Payroll Accounting (Practice Quiz) Print PDF For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. ls the payroll register used for journalizing the payroll entries?
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