The lower payroll Hours worked. A) It communicates departmental profitability. A credit of $16,250 is recorded on the June 25 FUTA tax payable 1,322. 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. Application of overhead to goods in process. Name of each employee 5. ERISA provides for full vesting of the employer's contributions in three years or gradually over six. Want more exclusive business insights like this delivered to your inbox? At a minimum, payroll registers help businesses: But thats hardly the extent of how beneficial a payroll register can be. In a sample of nine homes, what is the probability that: a. Purchaseoftreasurystock. & \text{ } & \text{ }\\ 5. FUTA Taxes Payable-liability in its Federal withholding tax payable account. Jan 19 Wages and salaries payable 226 8,134. Loantoanotherfirm. What is the Basic payroll register templates can be found online or created in programs like Excel. B. ERISA 5. Plan B costs$0.20 per minute plus $0.10 per text message sent. When the firm remits its health insurance premium for this pay date, what is the General Journal Comprehensive payroll and HR software solutions. Any boxes Left with a question mark will be automatically graded as incorrect.) D) Health insurance payable Issuanceofcommonstock. ADP hires in over 26 countries around the world for a variety of amazing careers. \text{15. Medicare tax payable 222 ??? Any boxes left with a question mark will be automatically graded as mark to empty the box For a wrong answer. C) Credit $1, $3,825 of employee withholding ($50,000 X 0.0765), Exempt Salaried Employees Paid Semi-monthly. Social Security tax $ 1,670. C. All employees under the age of 30. Accounting questions and answers. What is the primary purpose of a labor report? d. At least seven homes have large-screen TVs? Does FLSA say how often employees need to be paid? 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. On which income statement will the state unemployment tax expense appear under accrual accounting? 1. 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. 33. 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) It allows managers to determine the effect of employee labor on departmental profits. 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. in sin did my mother conceived me meaning View notices and letters. Which act sets the minimum wage, and what is the current wage rate? a wrong answer. Jeremy is single with two withholding allowances. on the first day of the next financial period? a. Walsh-Healey Public Contracts Act 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. Health Insurance payable 224 13,618. Rushing River Boats has the following data in its Social Security tax payable General Ledger the box with the question mark to produce a check mark for a correct answer and double click B) It allows managers to predict future labor costs. Listed below are several transactions. B. The Age Discrimination in Employment Act provides protection to virtually all workers over the age of: Form I-9, which is completed by each employee, deals with: Which of the following acts deals with the minimum wage paid to laborers for contractors on federal government construction contracts? Collection of notes receivable.} Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). \text{2. C) It is non-traceable labor that a company must absorb as overhead. 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. Which of the following is an example of a trade association? Period covered by the payroll and the pay date. B) Debit Cash, $250,000; Credit Revenue, $250, A cell phone company offers two different plans. Feb 15 J How can the information shown in the employees' earnings record be used? and year-to- date earnings. Purchase of treasury stock.} 401(k) contributions $ 1,115. This entry may be avoided if the amount is immaterial. McHale Enterprises has the following incomplete General Journal entry for the most recent pay Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. 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. Hence, no need to accrue any salaries. The lower the payroll B) $2,572. B) It should make a note to create the reversing entry at the end of the next financial period. D) Credit $30. \text{10. E. OASDI. The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. the payroll? Learn more about Privacy at ADP, including understanding the steps that weve taken to protect personal data globally. Paymentofanaccountpayable. Indirect labor usage. one answer. D) One side of the equation must equal zero. 57. 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. Single click Single click the box with the question Workers' Commpensation Insurance Expense-Operating expense Multiple Choice Q05 Federal withholding tax payable 220 $ 50,725. This guide is intended to be used as a starting point in analyzing an employers payroll obligations and is not a comprehensive resource of requirements. A) Medicare tax ordinance is passed? Exempt salaried employees are often paid for their work right up to payday. B) A debit balance will increase the expenses of the firm's income statement. D) Company website Under FMLA, the time must be used in one uninterrupted period of time. Copyright 2023 AccountingCoach, LLC. 28. B) FUTA 1. All of these journal entries are noted below. Most firms are now using a standard reference inquiry form, supplied by the IRS, If an investigative consumer report is being checked, the job applicant must be notified in writing by the employer that such a report is being sought, There are no states that allow employees to access their personnel files, The payroll register is a separate payroll record that is kept on each employee, A payroll register lists all employees who have earned remuneration, the amount of remuneration, the deductions, and the net amount paid for each pay period, The amounts needed for the payroll entries in the journal come from the employee's earnings record, The trend toward outsourcing of payroll operations has weakened in recent years. Forbids discrimination in hiring. 3. Payroll Flashcards | Quizlet Payroll Term 1 / 52 Garnishments are court-ordered amounts that an employer must withhold from an employee's post-tax pay and remit the amount to the appropriate authority. C. National Origin Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. Health Insurance Premiums Collected-liability period. 15. Payroll-Operating expense-liability Click here to learn more. 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%. For superior accuracy, many smalland largebusinesses rely on automated digital payroll solutions, such as those offered by ADP, which can integrate with accounting software and other programs. Payroll Register This is the first task to completing Olney Company's payroll register. A payroll register is tool that records wage payment information about each employee - gross pay, deductions, tax withholding, net pay and other payroll-related information - for each pay period and pay date. Does FLSA require all employees to be paid weekly, biweekly', monthly? C) Labor reports ls the FUTA tax used to pay unemployment benefits? A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. Are FICA taxes levied upon employers only? expense 522 $ 12,987. 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. C) proof of payroll deposits A. each option. Most office supply stores also carry books that are formatted specifically to record payroll information. Saleofequipmentforanotereceivable. Title of report 2. 27. True (California, New Jersey, New York & Rhode Island). Plan A costs $80 per month for unlimited talk and text. Protest Unemployment Insurance benefit charges or rates. Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. 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? B) The income statement Does every state have state unemployment laws? The higher payroll Which of the following is not a provision of ERISA? Book the entry on the date paychecks are distributed. 10. Payment of income taxes.} 6. 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 statement? pay Our online store for HR apps and more; for customers, partners and developers. Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? Saleoflandforcash.3. Medicare tax payable 3,197. See how we help organizations like yours with a wider range of payroll and HR options than any other provider. 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. B) The account appears fourth in the list of liability accounts. 34. Which act covers employee pension and welfare plan.? Every state imposes a state unemployment tax on employers in their state. At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. 12. ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. Q09. This will decrease E. All of the above are provisions of ERISA. A) Social Security tax, $204; Medicare tax, $792. How are the funds used which are provided by FUTA and SUTA? The employee's earnings records is used in preparing the employees' W-2 forms. c. McNamara-O'Hara Service Contract Act Paymentofanaccountpayable.15. When you later pay the withheld taxes and company portion of payroll taxes to the IRS, you then use the following entry to reduce the balance in the cash account, and eliminate the balances in the liability accounts: It is quite common to have some amount of unpaid wages at the end of an accounting period, so you should accrue this expense (if it is material). Which of the following steps should be taken by the Human Resources Department when hiring new employees? This will increase the C) Debit Revenue, $250,000; Credit Cash, $250, Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? Read the latest news, stories, insights and tips to help you ignite the power of your people. What are the General Journal entries that should appear on each pay date? We have been recognized by esteemed organizations for the value we bring to our clients, our associates and the global community. 63. A well-kept payroll register is also useful when preparing payroll tax reports, including: A payroll register is a record of payroll information for every employee each pay period. Jul 1 Wages and salaries payable 226 113,562. B) Total overtime earnings \text{5. 64. Which of the following are processes that occur in most payroll accounting systems? Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. That's why we've partnered with some of the top athletes in the world. Record the health insurance deduction. What are the General Journal entries that should appear on each pay date? What does the Civil Rights Act of 1954 cover? What is the purpose of the Age Discrimination in Employment Act (ADEA)? D) Federal withholding tax payable D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? B) It contains a detailed listing of every transaction during a period. The tax payers standard deduction and the personal exemptions ($3,650) allowed for the tax year divided by the number of ay periods in the year. on taxes like FICA, FUTA, and SUTA? the total expenses of the firm and decrease the net income of the firm. It lists payroll information about each employee, such as hours worked, gross pay, deductionsand net pay. A) A debit balance will increase the expenses of the firm's income statement. B) General Journal 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? This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. Deductions. To rule the payroll register means that the payroll accountant establishes procedures about the payroll register. NAME MARITAL STAT. Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? Didier and Sons had the following employer's share payroll tax general journal entry for the May To prohibit discrimination on the basis of age in the employment practices of employer. What is the amount of the 401(k) contributions for the pay date? (You may select more than Under FMLA, may employers exempt the highest paid 10 percent of the workforce? 221 Continuing Payroll Problem-B OLNEY COMPANY, INC. Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? A. ERISA applies to pension and welfare plans established by any employer engages in commerce. Issuance of common stock.} Purchase of inventory.} C. Restrictions the employment of child labor. Assume that the company uses the accrual method of accounting. - Michalis M. FICA (FICA is the acronym for Federal Insurance Contribution Act. Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) 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. A) It should create a reminder about the accrual to ensure accuracy of computations on the next FICA Taxes Payable-OASDI-liability posted an additional $4,390 on its October 31 pay date. 1. & \text{ } & \text{ }\\ C. ERISA establishes minimum vesting schedules that protect the workers' benefits. A payroll register is the record for a pay period that lists employee hours worked, gross pay, net pay, deductions, and payroll date. Gross pay and net pay. ADP and the ADP logo are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial Raw materials purchases for cash. You can enter a formula into a cell manually (typing it in) or by pointing to the cells. Simplify and unify your HCM compliance processes. Direct labor usage. Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. Payment of an account payable.} Direct materials usage. Here is the payroll journal entry to record the payment of the paycheck: Payroll Journal Entry Example 1 Notice the Wage Expense is debited for the gross pay. Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. From best practices to advice and HR consulting. CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. D) the employee's name, social security number, and address It indicates, "Click to perform a search". ls the payroll register used for journalizing the payroll entries? How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. C) It must pay its employees for the wages earned as of that date. The highest-paid 10 percent of their workforce. A) Revenue Upload your study docs or become a Course Hero member to access this document Continue to access Term Winter Professor N/A Tags This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. 20XX: Gross pay $ 27,894. For fill-in-the-blank questions, press or click on the blank space provided. & \text{O} & \text{CO}\\ Department of branch 4. How do accrued, but not paid, wages appear on the balance sheet? ls the written record sent to the Payroll Department telling them that a new employee should be added to the payroll called a hiring notice? account: Social Security tax payable ACCOUNT NO. Transaction1. D) The same as the chart of accounts Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. Jan 31 J4 420 1, Which of the following represents the missing Social Security and Medicare taxes, assuming that. 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. 41. Security taxes? These liabilities accompany every payroll you run. 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. C) Payroll accounts do not appear on the trial balance because of their changeable nature. C) Employee earnings record 1. Payroll data for the current week are as follows: hours worked, 46; federal income taxwithheld, $110; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. What is the current minimum wage under FLSA? Current period taxable earnings for FICA taxes are as. This will increase Type the formula, then press Enter. 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. Garnishment $ 450. Based on the following data, prepare the appropriate journal entry when paying employees: Total wages earned were $8000 Purchaseofinventory.7. e. None of the above. C) Asset, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Civilization and its Discontents (Sigmund Freud), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? A payroll register does not include: Multiple Choice Pay period dates. How do the Stanford-Binet and Wechsler tests differ? The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. 18. From recruitment to retirement, getting the very best out of your people. Todays digital landscape means limitless possibilities, and also complex security risks and threats. 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. Read more about the author. Payroll journal entries are used to record the compensation paid to employees. Purchaseofrentinadvance.4. True, In the General Ledger, the debit column reflects the balance of the account. 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. It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. False. pay date. *Graph the equation using the slope and $y$-intercept, as in the Previous Examples. D) The balance sheet A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. A. ADEA A) Both documents contain year-to-date totals of taxes. B) Equity B) It facilitates accuracy in employee payroll tax computations. A. 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;. Employee FIT Payable-liability B) Employee address 4. Wages and salaries payable 226 117,334. B) It must create an adjusting entry to recognize the payroll accrual. The payroll register needs to record the hours each employee has served in the firm in a day. Issuanceofbonds. C) It is a report designed for external stakeholders. 14. A) $2,253. Copyright 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--. 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. C) Employee pay disbursement and voluntary deduction remittance FIT Payable-liability The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries. Saleofequipmentforanotereceivable.10. 62. 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? Which of the following best describes the purpose of the payroll register? Another important step in maintaining a payroll register is to perform audits. var d=new Date(); document.write(d.getFullYear()); ADP, Inc. Find the package that's right for your business. Purchaseofinventory. Payment of a long-term note payable.} Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. Information available through a secured web sit, kiosk, or interactive voice response system. & \text{ } & \text{ }\\ Employees with less than a five year tenure of employment. In other words, a payroll register is the document that records all of the details about employees' payroll during a period. Social Security tax payable ??? Manage labor costs and compliance with easy time & attendance tools. B. ERISA requires each employer to establish a pension plan. What entry should appear in the General Ledger to reflect the Discover what others say about us. How to do payroll accounting: 7 steps At first glance, payroll accounting can be scary. How does a debit balance in the wages and salaries expense account affect a firm's income The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law. (You may select more than one answer. Union Dues Payable-liability For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. Single click the box with the question mark to produce a Union Dues payable 227 4,683. What is meant by the garnishment of wages? What portions of an employee's wages are exempt from a federal tax levy. This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. the health Insurance is qualified under Section 125? What does the term "billable time" mean as it pertains to payroll accounting? 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? Entitled to retirement program even if you're no longer working there. Small, midsized or large, your business has unique needs, from technology to support and everything in between. View the full answer. B) Employee pay remittance and voluntary deduction remittance B) tax remittance information Total Earnings 9. What must the employer do with unclaimed checks. * account: Social Security tax payable ACCOUNT NO. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. These entries are then incorporated into an entity's financial statements through the general ledger. 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 BALANCE C) Labor reports question mark Will be automatically graded as incorrect.) To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. Jan 31 J4 420 1, Zipperle Company has the following payroll information for the pay period ending September 18, Besides payroll information, the payroll register contains ________. Whether you operate in multiple countries or just one, we can provide local expertise to support your global workforce strategy. 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. ls the payroll register used in preparing the Form W-2? A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. Not only will this make it easier for you to pay your taxes and do payroll reconciliation, but it also allows employees to better understand their finances. In Philadelphia, Pennsylvania, most workers are subject to three income taxes upon their earnings - federal state and city. How might globalists and traditionalists view cultures, places, and regions differently. Purchase of rent in advance.} Vacation Benefits Expense-Operating expense "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. C) Debit $ At ADP, we believe sports and business both require the right approach. D) Credit $. 21 29. depositor, what entry Should appear on November 15 for the remittance of the month's Social Paymentofincometaxes.9. employees' payroll, one for the employer's share of the taxes. 8. accurate disbursal of payroll. Prior year's earnings < Prev 18 of 40 . Collectionofanaccountreceivable.5. 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.

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