Indirect labor usage. Federal withholding tax payable 220 $ 50,725. A) Because payroll represents an asset and an income of the business. A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. < Prey 18 of 40 Pay period dates. d. At least seven homes have large-screen TVs? B. 28. C. All employees under the age of 30. \text{12. 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? Answer : Option E, Prior Years Earnings Explanat . FICA (Federal Insurance Contributions Act). You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. 3. 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? A(n) ________ is a collection of cash and other items that are used in the operation of the C. 40 Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. Paymentofincometaxes.9. grass clippings at the curb for pickup because local landfills cannot handle the volume. 62. Paymentofanaccountpayable.15. False, The General Journal contains records of a firm's financial transactions, which appear The first answer is provided as an example. 34. E. 65, Which of the following is not a provision of the Fair Labor Standards Act? February 7 Journalize the employer . A credit of $16,250 is recorded on the June 25 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. B) A debit balance will increase the expenses of the firm's income statement. Payroll registers also provide aggregate employee information at a glance, which can be helpful when depositing tax payments, filing tax returns and performing other basic accounting tasks. D. Requires equal pay for equal work, regardless of gender. During the past week, the employee worked 50 hours. Switching payroll service providers made easy. Paymentofalong-termnotepayable. A) Employee pay accrual and employee pay disbursement Period covered by the payroll and the pay date. C) Both documents contain information from multiple pay periods. D) Company website 15. Sometimes you will see all the taxes lumped together into one account called Payroll Taxes Payable. Your portfolio has three asset classes. Once vested, can employees receive a pension at retirement even if they no longer work for that company? 59. What is The balance in the account? A. Jeremy is single with two withholding allowances. Purchase of rent in advance.} True, In the General Ledger, the debit column reflects the balance of the account. What is general priority order concerning wage attachements. Fast, easy, accurate payroll and tax, so you can save time and money. Employers use the employee's earnings record in preparing ___. 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. D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General A. ADEA D) It is a report designed to be read by parties external to the firm. Should an employer in Philadelphia record the liability for the withholding of all three income taxes in one liability account such as INcome Taxes Payable? Collectionofanaccountreceivable. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. 60. FICA Taxes Payable-OASDI-liability B) The account appears fourth in the list of liability accounts. What is true about the trial balance? Sets minimum wage. $3,825 of employee withholding ($50,000 X 0.0765), Exempt Salaried Employees Paid Semi-monthly. C. FLSA A) The statement of owners' equity These details include the employee id number, the department they belong, their job profile, etc. Want to read all 11 pages? Comprehensive payroll and HR software solutions. True, Employee earnings records form the link between accounting and the human resources 401(k) contributions payable 223 454. See Answer. D) Social Security tax, $188; Medicare tax, $805. 4. ls the payroll register used in preparing the Form W-2? May 14 Wages and salaries payable 226 117,334. Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? Any boxes Left with a question mark will be automatically graded as incorrect.) & \text{ } & \text{ }\\ Enchanted Creations has the following data in its Federal withholding tax payable General Ledger All of these journal entries are noted below. \text{13. Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? 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. How do the Stanford-Binet and Wechsler tests differ? Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. Identify distinctive compensation plans. A. ERISA applies to pension and welfare plans established by any employer engages in commerce. 9. An employee is hired at a pay rate of $10 per hour. C) SUTA Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. Its easier to keep accurate payroll records and run reports quickly with payroll software. At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA? What entry should appear in the General Ledger to reflect the How might globalists and traditionalists view cultures, places, and regions differently. True, The information in the payroll register forms the basis for entries in the Employee Earnings 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. 7. (You may A) It may be expressed as assets + liabilities = owners' equity. 56. 21 6. D. All employees earning the minimum wage. Read the latest news, stories, insights and tips to help you ignite the power of your people. Sale of equipment for cash.} B) Employee earnings record Direct materials usage. Oct 27 Wages and salaries payable 226 202,671. Rushing River Boats has the following data in its Social Security tax payable General Ledger 61. The purpose of payroll register is to record of all the payment details for employees during a specific pay period. TransactionTypeofActivityCashInfloworOutflow1. 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. D) Form 941 Payroll registers generally are more detailed than payroll journals and include specific information about each employee. Dont just take our word for it. Name of each employee 5. Issuance of bonds.} date: Oct 27 Wages and salaries expense 522 $298,384. D) It adds complexity to the payroll register. Todays digital landscape means limitless possibilities, and also complex security risks and threats. What is the amount of the Social Security tax payable? Sale of equipment for a note receivable.} Jan 31 J4 420 1, *Graph the equation using the slope and $y$-intercept, as in the Previous Examples. Health Insurance payable 224 13,618. What are the main kinds of information contained in a payroll register? Wages and salaries payable 226 117,334. 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. 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. 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. & \text{ } & \text{ }\\ Find payroll and retirement calculators, plus tax and compliance resources. SUTA Taxes Payable-liability Which of the following is NOT part of the social security program? Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). in its Federal withholding tax payable account. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial 401(k) contributions $ 1,115. 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. A) Net pay In other words, a payroll register is the document that records all of the details about employees' payroll during a period. Want more exclusive business insights like this delivered to your inbox?Subscribe now. ls the payroll register used for journalizing the payroll entries? A) Form W- Sale of land for cash.} 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. D) Transcribing 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? C) The balance sheet 5. Access the definitive source for exclusive data-driven insights on todays working world. What is the role of enhancing qualities in the conceptual framework? : an American History (Eric Foner), Psychology (David G. Myers; C. Nathan DeWall), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), The Methodology of the Social Sciences (Max Weber), the payroll register, employees' earning record, and accounting system entries, Chapter 5 quiz - employee net pay and pay methods, compute social security and medicare tax withholding, Chapter 4 quiz - fringe benefits and voluntary deductions, different between pre-tax and post-tax, Lab Calendar [CHEM 2551-HYB01] Spring 2021, Chapter 6 quiz - employer payroll taxes and labor planning, Conic Sections - Lecture notes Chapter 6 Notes, Emotional and Cultural Intelligence (D082), Introduction To Computer And Information Security (ITO 310), Professional Application in Service Learning I (LDR-461), Advanced Anatomy & Physiology for Health Professions (NUR 4904), Principles Of Environmental Science (ENV 100), Operating Systems 2 (proctored course) (CS 3307), Comparative Programming Languages (CS 4402), Business Core Capstone: An Integrated Application (D083), Bates Test questions The Thorax and Lungs, Student-HTN-Atherosclerosis Unfolding Reasoning, ATI System Disorder Template Heart Failure, Lesson 17 Types of Lava and the Features They Form, Wong s Essentials of Pediatric Nursing 11th Edition Hockenberry Rodgers Wilson Test Bank, Test Out Lab Sim 2.2.6 Practice Questions, The tenpoint plan of the new world order-1, Piling Larang Akademik 12 Q1 Mod4 Pagsulat Ng Memorandum Adyenda at Katitikan ng Pulong ver3, The cell Anatomy and division. mark to empty the box For a wrong answer. Paymentofalong-termnotepayable.13. C) Payroll accounts do not appear on the trial balance because of their changeable nature. \text{4. The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law. Hence, no need to accrue any salaries. A) $2,253. B) It is an individual register maintained for each employee, listing of all the payroll information. Saleofequipmentforanotereceivable. The payroll register of any firm needs to have specific details on every employee. & \text{ } & \text{ }\\ DEBIT CREDIT DEBIT CREDIT What is a use of a firm's labor trend reports? 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) It contains a detailed listing of every transaction during a period. What are the enhancing qualities of the qualitative characteristics? Why does company profitability decrease in direct proportion to the payroll expenses? Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. Vacaction Benefits Payable- liability. 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. B) FUTA Only "A payroll register" and "The employee's earnings record" are correct. The employees gross wages for the past week are. To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. The ___ is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period. 15. Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. It We have credited a liability account for each of the tax amounts. 27. Which financial statements are affected in the year 2022? The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). Discover a wealth of knowledge to help you tackle payroll, HR and benefits, and compliance. 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. CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. 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. 20. A) It must credit the asset accounts for the appropriate payroll amounts. Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? This account would be credited for the amount paid. Simplify and unify your HCM compliance processes. Copyright 2023 AccountingCoach, LLC. A payroll register can also . May an employer terminate an employee for lying on an application form? It lists payroll information about each employee, such as hours worked, gross pay, deductionsand net pay. statement? 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. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. Book the entry on the date paychecks are distributed. Every state imposes a state unemployment tax on employers in their state. Payroll journal entries are used to record the compensation paid to employees. Color Health Insurance payable 224 8,375. Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. To prepare period reports and complete Form W-2 for each employee, Fundamentals of Financial Management, Concise Edition, Operations Management: Sustainability and Supply Chain Management, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. False, Two complete payroll-related General Journal entries are recorded each pay period: one for the D. ERISA provides that all employees are eligible to set up their own individual retirement accounts. Calculate regular and overtime pay. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 Employee benefits, flexible administration, business insurance, and retirement plans. This will increase Paymentofemployeesalaries.2. DEBIT CREDIT DEBIT CREDIT An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. The employee's earnings records is used in preparing the employees' W-2 forms. Want more exclusive business insights like this delivered to your inbox? 66. $y = -x - 4$. \text{Transaction} & \text{Type of Activity} & \text{Cash Inflow or Outflow}\\ \hline ADP is a better way to work for you and your employees, so everyone can reach their full potential. expense 522 $ 12,987. (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 A) It is employee labor that may be billed to customers. Multiple Choice. Explain the use of the "Cumulative" column in the employee's earnings record. Apr 16 J23 16,495 32. \text{7. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. C. ERISA establishes minimum vesting schedules that protect the workers' benefits. E. Highest-paid 10% of their workforce. D) Payroll register Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? \begin{matrix} & \text{ } & \text{ }\\ From recruitment to retirement, getting the very best out of your people. Loantoanotherfirm.12. Q09. a. Walsh-Healey Public Contracts Act \text{6. Indirect materials usage. Correct answer: Option (1) Medicare tax is the correct answer. 18. 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? A) Form W- The employers total expense for Marys employment during the week is. You can enter a formula into a cell manually (typing it in) or by pointing to the cells. All rights reserved.AccountingCoach is a registered trademark. What does the term "billable time" mean as it pertains to payroll accounting? d. Occupational Safety and Health Act D) $1,875. Cross), Give Me Liberty! Does every state have both federal and state unemployment laws? B. ERISA requires each employer to establish a pension plan. Medicare tax $ 390. C) Cross-referencing What are the General Journal entries that should appear on each pay date? Which of the following represents the missing Social Security and Medicare taxes, assuming that. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. A) It is the fourth entry in the General Journal on that date. Yes, Employees FIT Payable . Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. B) Equity Basic payroll register templates can be found online or created in programs like Excel. D) Credit $. Social Security tax payable ??? incorrect.) Compute the employer's payroll taxes for the period. A) Both documents contain year-to-date totals of taxes. The lower payroll Since Eco Brewers is a monthly schedule D) It should create a reversing entry in the General Journal. B) $2,572. D) The balance sheet & \text{ } & \text{ }\\ Total Earnings 9. 1. How can the information shown in the employees' earnings record be used? Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . 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. 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 Wages Payable-liability A) A debit balance will increase the expenses of the firm's income statement. A) the beginning and ending dates of the pay period View notices and letters. The ________ is the master document that contains an employee's marital status, deductions, Union Dues Payable-liability Neither The Balance Sheet Nor The Income Statement. What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? Loan to another firm.} account: ACCOUNT Federal withholding tax payable ACCOUNT NO. 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. Payment of an account payable.} A) It communicates departmental profitability. (You may select more than BALANCE DATE DESCRIPTION POST REF. Gross pay and net pay. False. 33. D) It may contain whatever accounts the accountant wishes to include. 4. What are the main kinds of information contained in a payroll register? The town is considering an ordinance that would prohibit putting We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. How do accrued, but not paid, wages appear on the balance sheet? 1. A) Debit $1, 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. C) Earnings subject to FICA tax 38. D) One side of the equation must equal zero. E. Sex, Which of the following statements is NOT a provisions of ERISA? Which of the following reports links the accounting and the human resources departments? B) It should make a note to create the reversing entry at the end of the next financial period. Why is it important to have columns on the payroll register title "Earnings subject to Federal A magnifying glass. B) the total gross pay, deductions, and net pay during the period Application of overhead to goods in process. Explain the major provisions of the Fair Labor Standards Act. 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. posted an additional $4,390 on its October 31 pay date. They must disclose to the job applicant that they are seeking an investigative report. Copyright B) Employee address pay date. 5 pay date: May 5 Payroll Taxes Expense $ 27,671. Learn more about Privacy at ADP, including understanding the steps that weve taken to protect personal data globally. The higher payroll Protest Unemployment Insurance benefit charges or rates. Deductions. B) The labor report, C) The statement of owners' equity A) The income statement 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.
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