B) It is employee labor that does not pertain to labor on customer jobs. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do 30. On which income statement will the state unemployment tax expense appear under accrual accounting? Feb 15 J On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. B. Vacation Benefits Expense-Operating expense D) One side of the equation must equal zero. A. (You may select more than one answer. Gross wages of $500.00 less withholdings of $38.25 for FICA and $87.25 for federal and state income taxes. The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. $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 contribution to an employee's pension fund in 3 years or gradually over: these factors are bona fide occupational qualifications for the job. E. 65, Which of the following is not a provision of the Fair Labor Standards Act? True, The information in the payroll register forms the basis for entries in the Employee Earnings 6. Saleoflandforcash. Purchaseoftreasurystock. 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 Record the health insurance deduction. Issuanceofbonds.11. C. National Origin Title of report 2. C) It must remain in balance at all times. Which of the following laws establishes the minimum wage? 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. It lists payroll information about each employee, such as hours worked, gross pay, deductionsand net pay. Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. A) The statement of owners' equity 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. This account would be credited for the amount paid. B. ERISA requires each employer to establish a pension plan. Were reimagining what it means to work, and doing so in profound ways. A payroll register is the record for a pay period that lists employee hours worked, gross pay, net pay, deductions, and payroll date. C) SUTA The town is considering an ordinance that would prohibit putting the total incomes of the firm and decrease the net income of the firm. D) Social Security tax, $188; Medicare tax, $805. When the firm remits its health insurance premium for this pay date, what is the General Journal It records payroll record on each employee separately. B) General Journal Any boxes left with a The higher payroll ls the Federal Government covered under the Civil Rights Act of 1964? C) the name of the firm and the payroll accountant 15. Issuance of bonds.} A company may occasionally print manual paychecks to employees, either because of pay adjustments or employment terminations. 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) It may be expressed as assets + liabilities = owners' equity. Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. C) It allows payroll employees to divert funds into faux accounts. The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. Jan 31 J4 420 1, Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. d. Occupational Safety and Health Act D. FMLA I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? Exempt salaried employees are often paid for their work right up to payday. What is the role of enhancing qualities in the conceptual framework? Discover a wealth of knowledge to help you tackle payroll, HR and benefits, and compliance. Collectionofnotesreceivable.8. PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. 38. Use the following information for Questions 15 - 17: Which of the following reports links the accounting and the human resources departments? D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? Neither The Balance Sheet Nor The Income Statement. : an American History (Eric Foner), Psychology (David G. Myers; C. 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Factory payroll costs in cash. Feb 15 J Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll,one for the employer's share of the taxes. C) Garnishment The first answer is provided as an example. What is The balance in the account? What are the General Journal entries that should appear on each pay date? D) A debit balance will increase the income of the firm's income statement. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). 62. D. ERISA provides that all employees are eligible to set up their own individual retirement accounts. Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? Apr 16 J23 16,495 32. 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. expense 522 $ 12,987. Information available through a secured web sit, kiosk, or interactive voice response system. A) Employee earnings record the health Insurance is qualified under Section 125? 11. 401(k) contributions payable 223 454. must it do to recognize the liabilities and expenses? 39. account: Social Security tax payable ACCOUNT NO. True (California, New Jersey, New York & Rhode Island). the box with the question mark to produce a check mark for a correct answer and double click & \text{ } & \text{ }\\ It indicates, "Click to perform a search". It is a monthly schedule depositor. Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? A) $2,253. ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. Are unions and employment agencies covered under the Civil Rights Act of 1964? Garnishment $ 450. A. Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). B) As equity False, The General Journal contains records of a firm's financial transactions, which appear FICA Taxes Payable-OASDI-liability 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. FIT Payable-liability In January 2023 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2022. Get exclusive business insights delivered straight to your inbox. Time worked - regular & overtime 7. Deductions. C) Employee signature He is the sole author of all the materials on AccountingCoach.com. Does every state have state unemployment laws? Prior year's earnings < Prev 18 of 40 . C) A debit balance will decrease the expenses of the firm's income statement. File, adjust, and print returns and reports. 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. The portion of the Federal Insurance Contributions Act that deals with Social Security is called. and year-to- date earnings. \text{4. What special accounts must usually be opened in the general ledger to record payroll tax entries? Employers use the employee's earnings record in preparing ___. These liabilities accompany every payroll you run. What entry should appear in the General Ledger to reflect the Wages Payable-liability D) The same as the chart of accounts box for a wrong Answer. Use the information in the previous exercise to prepare journal entries for the following events in May. Which of the following represents the missing Social Security and Medicare taxes, assuming that. Identify distinctive compensation plans. the total expenses of the firm and increase the net income of the firm. This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services. Total Earnings 9. Issuanceofcommonstock.6. Calculate regular and overtime pay. All nine have large-screen TVs? For fill-in-the-blank questions, press or click on the blank space provided. Copyright 2023 AccountingCoach, LLC. Small, midsized or large, your business has unique needs, from technology to support and everything in between. A) It must credit the asset accounts for the appropriate payroll amounts. Listed below are several transactions. 221 mark to empty the box For a wrong answer. Which of the following is NOT part of the social security program? How can the information shown in the employees' earnings record be used? False. \text{6. What options might Hazel consider if the This check may be paid through the corporate accounts payable bank account, rather than its payroll account, so you may need to make this entry through the accounts payable system. Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. Requirements: Record the deduction for group insurance. 53. What is meant by the garnishment of wages? How does the payroll register connect with the employees' earnings records? Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? Direct materials usage. Sale of land for cash.} E. OASDI. A) It is employee labor that may be billed to customers. 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. Step 2: Working Hours. Medicare tax payable 222 ??? All earnings are taxable. 15. Gross pay and net pay. At ADP, we believe sports and business both require the right approach. D) 401(k) contributions This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. 9. one answer. BALANCE Medicare tax $ 390. 66. According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? Collectionofnotesreceivable. Saleofequipmentforcash. Does FLSA say how often employees need to be paid? B) Debit $30, Answer : Option E, Prior Years Earnings Explanat . Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. Hours worked. Compute and record the Kipley Company's SUTA and FUTA contributions. Requirements: 1. & \text{ } & \text{ }\\ The amounts needed for the payroll entries in the journal come from the employee's earning records. D) the employee's name, social security number, and address 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. How might globalists and traditionalists view cultures, places, and regions differently. & \text{ } & \text{ }\\ Employee benefits, flexible administration, business insurance, and retirement plans. Type the formula, then press Enter. A) Social Security tax, $204; Medicare tax, $792. serves as a backup in the event of computer failure. Payroll liabilities In most business organizations, accounting for payroll is particularly important because (1) payrolls often are the largest expense that a company incurs, (2) both federal and state governments require maintaining detailed payroll records, and (3) companies must file regular payroll reports with state and federal governments D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 3. A credit of $16,250 is recorded on the June 25 C) It is a worksheet that accountants use to ensure payroll accuracy. 5. Payroll Register This is the first task to completing Olney Company's payroll register. Read more about the author. *Graph the equation using the slope and $y$-intercept, as in the Previous Examples. Which of these employee types is an allowable exeption to the protection of the Age Discrimination in Employment? The accrual entry, as shown next, is simpler than the comprehensive payroll entry already shown, because you typically clump all payroll taxes into a single expense account and offsetting liability account. the payroll? Legalor equitable procedure by which a protion of the wages of any person must be withheld for payment of a debt. Todays digital landscape means limitless possibilities, and also complex security risks and threats. Employee FIT Payable-liability A) Debit $1, lf an investigative consumer report is used in an employment decision, does the employer need to tell the individual? True Which of the following is true of employee's earnings record? Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. Payroll journal entries are used to record the compensation paid to employees. C) Both documents contain information from multiple pay periods. DEBIT CREDIT DEBIT CREDIT May criminal background checks be used by all employers for any person? This will increase D) Debit Health Insurance Payable $27,237; Credit Cash $27,237. (You may select more than Why does company profitability decrease in direct proportion to the payroll expenses? Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? Read the latest news, stories, insights and tips to help you ignite the power of your people. b. Book the entry on the date paychecks are distributed. B) By dollar amount C. 40 Wages and salaries payable 226 ??? Forbids discrimination in hiring. ls the payroll register used in preparing the Form W-2? View notices and letters. C) Employee earnings record What is true about the trial balance? 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). chronologically. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. Jan 31 J4 420 1, D) Employee pay recording and employer share payroll taxes recording Medicare tax payable 222 4,205. on the first day of the next financial period? 54. 31. C) $12,576. Discover the latest Today at Work insights from the ADP Research Institute. \text{14. Quickly connect ADP solutions to popular software, ERPs and other HR systems. D) information about the firm's liabilities Payroll registers include all of the information in a pay period for all employees. Which financial statements are affected in the year 2022? incorrect.) c. More than five have large-screen TVs? Sets minimum wage. The current minimum wage set by the Fair Labor Standards Act is $7.25 per hour, The FLSA imposes no record keeping requirements on employers, The employer is required by the FLSA to display a poster that informs employees of the provisions of the law, All states have set their minimum wage to be the same as the Federal government, Under the Federal Insurance Contributions Act, the Medicare portion of the tax is only paid by the employer, The FLSA provides health insurance for the aged and disabled(medicare), The tax paid to the federal government for unemployment taxes is used for paying state and federal administrative expenses of the unemployment program, The Self-Employment Contributions Act imposes a tax on the net earnings from self-employment derived by an individual from any trade or business, Each state imposes an income tax on employees that is 2 percent of gross wages, Only six states do not impose a state unemployment tax on employers in their state, One of the provisions of coverage of the Civil Rights Act is that the employer must have 15 or more workers, Title VII of the Civil rights Act protects all employees from arbitrary dismissal, By the use of executive orders, the federal government has banned discrimination in employment on government contracts, Employers not subject to Title VII coverage may come within the scope of the Civil Rights Act by reason of a contract or subcontract involving federal funds, Under the Civil Rights Act of 1964, the U.S. government is classified as an exempt employer, An exemption to the protection that the Age Discrimination in Employment Act provides for all workers over 40 involves executives who are 65 or older and who have held high policy making positions during the 2 year period prior to retirement, Under the Federal Personal Responsibility and Work Opportunity Reconciliation Act, every employer is required to report the name, address, and social security number of each new employee to the appropriate state agency, Form I-9 must be completed by each new hire, Employers are now required to photocopy new employees' form I- 9 documents, In order for the Walsh-Healey Public Contracts Act to protect laborers for contractors who furnish materials to any agency of the U.S., the contract amount must be at least $10,000, Under FMLA, the time off must be used in one uninterrupted period of time. The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. What information is commonly provided by a job-seeker on the application for employment form? \text{5. That's why we've partnered with some of the top athletes in the world. 28. The higher payroll 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?
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