A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. 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. Explain the use of the "Cumulative" column in the employee's earnings record. Gross pay and net pay. How are employees who do not have bank accounts paid by an employer who uses an electronic fundstransfer system for payroll. A) Net pay Savings bonds payable 227 1,850. Copyright 2023 AccountingCoach, LLC. Recorded as a liability for the employer in the payroll entry. A) A debit balance will increase the expenses of the firm's income statement. Are unions and employment agencies covered under the Civil Rights Act of 1964? C. All employees under the age of 30. Plan B costs$0.20 per minute plus $0.10 per text message sent. A) $2,253. What information is commonly provided by a job-seeker on the application for employment form? When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger. 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) Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? Records and the General Journal. Define hours worked. 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. mark to empty the box For a wrong answer. 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. A) The statement of owners' equity B) A debit balance will increase the expenses of the firm's income statement. C) Credit $1, Step 2: Working Hours. Why does company profitability decrease in direct proportion to the payroll expenses? Todays digital landscape means limitless possibilities, and also complex security risks and threats. \text{12. How does the FIFO method different from the weighted-average method? & \text{ } & \text{ }\\ Entitled to retirement program even if you're no longer working there. Rushing River Boats has the following data in its Social Security tax payable General Ledger A) Form W- < Prey 18 of 40 Pay period dates. Deductions. B) tax remittance information D) 401(k) contributions \text{2. 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. 2. B) Debit Cash, $250,000; Credit Revenue, $250, Federal withholding tax $ 3,570. Any boxes Left with a question mark will be automatically graded as incorrect.) \text{3. Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). For the entry on January 31, what does the J4 signify? Application of overhead to goods in process. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. A) the beginning and ending dates of the pay period Multiple Choice Q05 Why is it important to have columns on the payroll register title "Earnings subject to Federal 5. Payroll Test #1 Flashcards | Quizlet Subjects Expert solutions Log in Sign up Payroll Test #1 Term 1 / 66 Does every state have state unemployment laws? Which act sets the minimum wage, and what is the current wage rate? It is a monthly schedule depositor. For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. the total incomes of the firm and decrease the net income of the firm. The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. B) It is always expressed as assets = liabilities - owners' equity. (You may select more than one answer. False - also needs to be a reasonable amount. Deductions. Employee benefits, flexible administration, business insurance, and retirement plans. 9. Does every state have both federal and state unemployment laws? b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. Which of the following reports links the accounting and the human resources departments? What is a use of a firm's labor trend reports? 6. The ________ is the master document that contains an employee's marital status, deductions, c. More than five have large-screen TVs? 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. incomes are, the higher the profitability will be. What is the role of enhancing qualities in the conceptual framework? Didier and Sons had the following employer's share payroll tax general journal entry for the May But if you follow these seven steps, you can learn how to account for payroll with ease. Saleofequipmentforcash.TypeofActivityOCashInfloworOutflowCO. Purchaseofinventory.7. Describe the main types of records used to collect payroll data. You face specific challenges that require solutions based on experience. 58. 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. B) Equity C) Payroll accounts do not appear on the trial balance because of their changeable nature. Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. 1. (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 Answer : Option E, Prior Years Earnings Explanat . It indicates, "Click to perform a search". Paymentofanaccountpayable.15. Administrating the state unemployment taxes. 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. ls the payroll register used for journalizing the payroll entries? 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. Rushing River Boats has the following data in its Social Security tax payable General Ledger The employers total expense for Marys employment during the week is. The town is considering an ordinance that would prohibit putting B) Employee address Q09. B) Employee earnings record Neither The Balance Sheet Nor The Income Statement. Purchaseofinventory. How to do payroll accounting: 7 steps At first glance, payroll accounting can be scary. What is true about the trial balance? D) General journal numbers d. At least seven homes have large-screen TVs? This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. True, The information in the payroll register forms the basis for entries in the Employee Earnings 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%. A) Medicare tax At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA? Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. FICA Taxes payable-HI-liability Information available through a secured web sit, kiosk, or interactive voice response system. 401(k) contributions $ 1,115. Net pay $ 19,747. & \text{ } & \text{ }\\ 10. 64. Name two advantages and two drawbacks of B. ERISA requires each employer to establish a pension plan. B) Credit $1, 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 Workers' Commpensation Insurance Expense-Operating expense The holder of any unclaimed property must file a report after a specified sttutory period and then surrender the money to the stte as abandoned property. E. All of the above are provisions of ERISA. Accounting questions and answers. (You may select more than one answer. In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. Discover what others say about us. 41. select more than one answer. 1. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. D) One side of the equation must equal zero. Jan 19 Wages and salaries payable 226 8,134. How does a debit balance in the wages and salaries expense account affect a firm's income \text{13. Jan 31 J4 420 1, statement? B) By dollar amount (You may select more than The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. Simplify and unify your HCM compliance processes. 221 B) It must create an adjusting entry to recognize the payroll accrual. B) It is an individual register maintained for each employee, listing of all the payroll information. False, Two complete payroll-related General Journal entries are recorded each pay period: one for the on the first day of the next financial period? Saleoflandforcash.3. Sale and delivery of finished goods to customers for cash (record unadjusted cost of sales). D) Employee pay recording and employer share payroll taxes recording 17. B) Employee pay remittance and voluntary deduction remittance Employers can exempt the following employees from the Family and Medical Leave Act. 5 pay date: May 5 Payroll Taxes Expense $ 27,671. mark for a correct Answer and double click the box with the question mark to empty the box for Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. False. A) Employee earnings record 1. 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? Age B) Payroll register Does FLSA require all employees to be paid weekly, biweekly', monthly? We have been recognized by esteemed organizations for the value we bring to our clients, our associates and the global community. Loan to another firm.} C. ERISA establishes minimum vesting schedules that protect the workers' benefits. Based on the following data, prepare the appropriate journal entry when paying employees: Total wages earned were $8000 57. 19. 2. Want more exclusive business insights like this delivered to your inbox? & \text{ } & \text{ }\\ 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. pay date. Purchaseoftreasurystock.14. A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. A. Employers use the employee's earnings record in preparing ___. What are some examples of secondary sex characteristics? Union Dues payable 227 4,683. A) Revenue D. 50 D) information about the firm's liabilities C) It must remain in balance at all times. The payroll register of any firm needs to have specific details on every employee. Exempt salaried employees are often paid for their work right up to payday. D) Company website D) Debit $8. 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. 7. How are the funds used which are provided by FUTA and SUTA? Vacation Benefits Expense-Operating expense 3. Fair Labor Standards Act 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. A. What is the term for transferring data from the General Journal to the General Ledger? 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 How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. Sale of land for cash.} Were reimagining what it means to work, and doing so in profound ways. B) Both documents contain information about the employee's address and job title. account: Social Security tax payable ACCOUNT NO. It is quite common to create a manual check, either because an employee was short-paid in the preceding payroll, or because the company is laying off or firing an employee, and so is obligated to pay that person before the next regularly scheduled payroll. Under FLMA, do any states have paid a family leave plan? C) It is a worksheet that accountants use to ensure payroll accuracy. Marital status & number of withholding allowances 6. Record the health insurance deduction. B. Wages Payable-liability B) General Journal Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. pay date. The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. Which of the following is NOT part of the social security program? Listed below are several transactions. depositor, what entry Should appear on November 15 for the remittance of the month's Social TransactionTypeofActivityCashInfloworOutflow1. At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. box for a wrong Answer. Report changes to your business. The agreement also states that the two weeks of vacation shall be taken any time in 2023 and the amount paid will be 80 hours multiplied by the employee's rate of pay at December 31, 2022. May 14 Wages and salaries payable 226 117,334. These liabilities accompany every payroll you run. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do Use the following information for Questions 15 - 17: This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. date: Oct 27 Wages and salaries expense 522 $298,384. Under the Family and Medical Leave Act, employers can exempt an employee who has not worked for the employer for at least one year and has worked for the company for at least 1,250 hours in the last year. A) Ledgering Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. Hence, no need to accrue any salaries. DEBIT CREDIT DEBIT CREDIT Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. 7. B. A payroll register is the record for a pay period that lists employee hours worked, gross pay, net pay, deductions, and payroll date. Withholding" and "Earnings subject to FICA"? What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? D) Both documents contain details of employee earnings, deductions, and disbursement for a Federal withholding tax payable 220 $ 50,725. D) the employee's name, social security number, and address pay What is the amount of the Social Security tax payable? 33. NAME MARITAL STAT. An employee is hired at a pay rate of $10 per hour. the box with the question mark to produce a check mark for a correct answer and double click lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? Forbids discrimination in hiring. What is the 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. What options might Hazel consider if the Are pre-hire questions pertaining to religion, gender' national origin' or age allowed if these are bona fide occupational requirements of the job? B) $2,572. Social Security tax $ 1,670. Protection under the provisions of the Age Discrimination in Employment Act begins at what age? Federal income tax payable 11,955. 5. d. Occupational Safety and Health Act 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. What entry should appear in the General Ledger to reflect the C) As expenses & \text{O} & \text{CO}\\ Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. Safe-guards your retirement plans *not required to have a pension plan. Under FMLA, may employers exempt the highest paid 10 percent of the workforce? C) Form W- C) A debit balance will decrease the expenses of the firm's income statement. During the past week, the employee worked 50 hours. C) It is a report designed for external stakeholders. ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. A payroll register does not include: Multiple Choice Pay period dates. A) By order of importance These entries are then incorporated into an entity's financial statements through the general ledger. The first answer is provided as an example. If you are recording it directly into the general ledger or the payroll journal, then use the same line items already noted for the primary payroll journal entry. 60. 6. expenses are, the lower the profitability will be. Which report contains employer share tax expenses for a period? A) Debit $1, C) proof of payroll deposits For example, there may be deductions for 401(k) pension plans, health insurance, life insurance, vision insurance, and for the repayment of advances. SUTA tax payable 9,481. department. Protection under the provisions of the Age Discrimination in Employment Act begins at what age?? When the firm remits its health insurance premium for this pay date, what is the General Journal Learn how we can make a difference by joining forces to improve the success of the clients we share. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? Explain the major provisions of the Fair Labor Standards Act. What are the enhancing qualities of the qualitative characteristics? *Graph the equation using the slope and $y$-intercept, as in the Previous Examples. 10. Assume that the company uses the accrual method of accounting. Does FLSA require the employer to display a poster with the FLSA rules? What is your sisters total cost under each of the two plans? FUTA Taxes Payable-liability Copyright This information is also reflected in summary level entries in the businesss general ledger. Learn how we can tackle your industry demands together. Find payroll and retirement calculators, plus tax and compliance resources. \text{8. C) Debit $ 9. 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 Employee SIT Payable-liability General Journal entry to record this transaction? Requirements: 1. Does FLSA say how often employees need to be paid? False, The General Journal contains records of a firm's financial transactions, which appear Paymentofalong-termnotepayable.13. & \text{ } & \text{ }\\ True, A debit always decreases the balance of an account. D) It is non-employee labor that the company must pay. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases & \text{ } & \text{ }\\ Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. Current period taxable earnings for FICA taxes are as. 18. D) It is a report that becomes published with other financial reports. Loantoanotherfirm. Fair Labor Standards Act (Federal Wage & Hour Law). Discover what others say about us. Who are the winners and who are the losers when the minimum wage is increased? 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. \text{5. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. At a minimum, payroll registers help businesses: But thats hardly the extent of how beneficial a payroll register can be. Does every state have state unemployment laws? Which of the following represents the missing Social Security and Medicare taxes, assuming that. Sometimes you will see all the taxes lumped together into one account called Payroll Taxes Payable. FICA Taxes Payable-OASDI-liability Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? The company does not provide health insurance, paid vacations, or any other benefits. A) Net pay DEBIT CREDIT DEBIT CREDIT 5. What is The balance in the account? Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. 220 A) It is a list of all persons and companies that the company pays money during a period. Calculate regular and overtime pay. All of these journal entries are noted below. the health Insurance is qualified under Section 125? B) It facilitates accuracy in employee payroll tax computations. Payment of an account payable.} In what order are accounts presented on the trial balance? Which of the following is an example of a trade association? Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO. Read more about the author. That's why we've partnered with some of the top athletes in the world. In Philadelphia, Pennsylvania, most workers are subject to three income taxes upon their earnings - federal state and city. Multiple Choice. Payment of a long-term note payable.} D) The balance sheet Total Earnings 9. below deck mediterranean 2022 cast. E. Highest-paid 10% of their workforce. C) It is non-traceable labor that a company must absorb as overhead. For fill-in-the-blank questions, press or click on the blank space provided. Your sister currently uses 1,700 minutes and sends 1,600 texts each month. in its Federal withholding tax payable account. Which of the following laws establishes the minimum wage? DEBIT CREDIT DEBIT CREDIT File, adjust, and print returns and reports. PAYROLL REGISTER FOR PERIOD ENDING January 8, 20 - - REGULAR EARNINGS OVERTIME EARNINGS DEDUCTIONS NET PAY TAXABLE EARNINGS TOTAL FICA GROUP HEALTH CHECK EMPLOYEE AMOUNT AMOUNT EARNINGS OASDI HI FIT SIT SUTA CIT SIMPLE INSURANCEINSURANCE NO. All rights reserved.AccountingCoach is a registered trademark. At ADP, we say that were Always Designing for People, starting with our own. Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. C) Because payroll represents a liability and an expense of the business. To prohibit discrimination on the basis of age in the employment practices of employer. Because of the amount of sensitive information included in the payroll register, access tends to be limited only to those authorized within a company, such as the payroll manager. 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 \text{7. Paymentofemployeesalaries.OCO2. The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. Payroll registers are typically a series ofsimple charts (one for each employee during a given pay period) that include such information as: Note that payroll recordkeeping laws differ across jurisdictions. Saleoflandforcash. \text{11. The payroll register contains ________. B) It is employee labor that does not pertain to labor on customer jobs. DATE DESCRIPTION POST REF. What is meant by the garnishment of wages? Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. 1. A) Form W- 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? Yes, Employees FIT Payable . How will payroll deductions from employees wages for their portion of 401K plans be recorded? What is general priority order concerning wage attachements. Which of the following is true about the fundamental accounting equation? A payroll register can also . All salaried employees. D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General C) Social Security tax, $746; Medicare tax, $174. Transfer of finished jobs to the finished goods inventory. Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. C. FLSA Hourly-paid employees have their paydays approximately one week after their workweeks and generally the workweek does not end on the last calendar day of the month. Hours worked. What is the amount of the 401(k) contributions for the pay date? We have credited a liability account for each of the tax amounts.
Adams County Sheriff News,
Boston Athletic Club Reopening,
Identifying Trends, Patterns And Relationships In Scientific Data,
Articles P