Deductions from total earnings 10. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. Paymentofalong-termnotepayable.13. FICA Taxes Payable-OASDI-liability At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA? 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. The lower the payroll The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. 3. box for a wrong Answer. 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. Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. Todays digital landscape means limitless possibilities, and also complex security risks and threats. False, Two complete payroll-related General Journal entries are recorded each pay period: one for the 2. C) It is a report designed for external stakeholders. It records payroll record on each employee separately. Issuanceofcommonstock.6. Employee SIT Payable-liability in sin did my mother conceived me meaning Payroll typically creates an accrued liability for all of the following reasons except Because it is unnecessary to report amounts owed to employees for salaries or wages earned. B) Employee address A. ADEA A credit of $16,250 is recorded on the June 25 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. Deductions. Required: 1. The lower payroll the total incomes of the firm and decrease the net income of the firm. B) As equity Listed below are several transactions. 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? account: Social Security tax payable ACCOUNT NO. Indirect labor usage. Employers can exempt the following employees from the Family and Medical Leave Act. It records payroll record on each employee separately. Social Security tax payable 221 17,980. B) Debit Cash, $250,000; Credit Revenue, $250, 3. E. Highest-paid 10% of their workforce. Yes, Employees FIT Payable . 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%. Paymentofanaccountpayable.15. Record the health insurance deduction. Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. one answer. Sale of equipment for cash.} 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) C. Restrictions the employment of child labor. According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? 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. Does FLSA require the employer to display a poster with the FLSA rules? SUTA Taxes Payable-liability Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. serves as a backup in the event of computer failure. D) The transaction appears on page four of the General Journal. & \text{ } & \text{ }\\ In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. True, Besides containing the supporting data for periodic tax reports, the employee earnings record D) $1,875. D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General Sometimes you will see all the taxes lumped together into one account called Payroll Taxes Payable. The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries. & \text{ } & \text{ }\\ mark for a correct Answer and double click the box with the question mark to empty the box for 3. Rushing River Boats has the following data in its Social Security tax payable General Ledger Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. FUTA was designed to ensure that workers who are covered by pension plans receive benefits from those plans, Under ERISA, vesting conveys to employees the right to share in a retirement fund in the event they are terminated before the normal retirement age, Under ERISA, if there is a pension plan, every employee is eligible after reaching age 21 or completing one year of service, whichever is later, ERISA provides for full vesting of the employer's contributions in 3 years or gradually over 6, The total cost of workers' compensation insurance is borne by the employees, Worker's compensation insurance premiums for employers vary according to the different degrees of danger in various classes of jobs and the employers' accident experience rate, Workers' compensation benefits are paid directly to the employer, Only one state has passed a law to provide disability benefits to employees absent from their jobs due to illness, accident, or disease not arising out of their employment, The requisition for personnel form is sent to the Payroll Dept. The ________ is the master document that contains an employee's marital status, deductions, Columns included in the payroll register to compute net pay may include which of the following? D) information about the firm's liabilities Single click the box with the question mark to produce a check, In the following payroll transaction, what is the amount of the net pay? This will decrease account: ACCOUNT Federal withholding tax payable ACCOUNT NO. Form W-2 Compute and record the Kipley Company's SUTA and FUTA contributions. Report new employees or independent . 4. Total Earnings 9. When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger. The purpose of payroll register is to record of all the payment details for employees during a specific pay period. Which of the following reports links the accounting and the human resources departments? Which items would be debited in the General Journal entry to record the employees' share of He is the sole author of all the materials on AccountingCoach.com. the health Insurance is qualified under Section 125? D) Transcribing Union Dues Payable-liability B) tax remittance information so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. Federal withholding tax $ 3,570. Dont just take our word for it. 4. It is a monthly schedule depositor. Wages and salaries payable 226 117,334. How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. C) $1,715. pay date. Why is it important to have columns on the payroll register title "Earnings subject to Federal Sets minimum wage. Administrating the state unemployment taxes. Compute the employer's payroll taxes for the period. Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. What is the purpose of the Age Discrimination in Employment Act (ADEA)? It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. Name of each employee 5. February 7 Journalize the employer . 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? Garnishment $ 450. tax Remittance on February 15? Discover how easy and intuitive it is to use our solutions. 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? < Prey 18 of 40 Pay period dates. Only "A payroll register" and "The employee's earnings record" are correct. (You may select more than one answer. Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. A) Ledgering E. All are provisions of FLSA. D) It is a report designed to be read by parties external to the firm. Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). When the employer pays the employee in 2023 for the vacation earned in 2022, what account will the company debit? 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? What special accounts must usually be opened in the general ledger to record payroll tax entries? 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. Medicare tax payable 3,197. A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. 5. A. B) Debit Cash $13,618; Credit Health Insurance Payable $13,618. C) Labor reports D) It is a report that becomes published with other financial reports. 6. Fair Labor Standards Act C) proof of payroll deposits Q09. C) It designates where labor is used in a firm. B) It depicts the ideal distribution of labor in a firm. Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). B) $15,298. 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. 53. 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. HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. 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. Paymentofemployeesalaries.2. each option. D) One side of the equation must equal zero. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Feb 15 J Under FLSA, what is the current minimum wage? var d=new Date(); document.write(d.getFullYear()); ADP, Inc. Find the package that's right for your business. Use the following information for Questions 19 - 20: Are pre-hire questions pertaining to religion, gender' national origin' or age allowed if these are bona fide occupational requirements of the job? $y = -x - 4$. on the first day of the next financial period? At ADP, we say that were Always Designing for People, starting with our own. B. What is the current minimum wage under FLSA? Federal withholding tax payable 220 $ 50,725. A) $2,253. B) It contains a detailed listing of every transaction during a period. \text{14. What are the main kinds of information contained in a payroll register? c. McNamara-O'Hara Service Contract Act Assume that the company uses the accrual method of accounting. ls the FUTA tax used to pay unemployment benefits? below deck mediterranean 2022 cast. C) Debit Revenue, $250,000; Credit Cash, $250, Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. C) Alphabetically Issuanceofcommonstock. A) It must credit the asset accounts for the appropriate payroll amounts. Saleofequipmentforcash. For fill-in-the-blank questions, press or click on the blank space provided. D) the employee's name, social security number, and address Under the Family and Medical Leave Act, what is the maximum number of weeks of unpaid leave that a covered employer is required to offer an employee whose spouse is seriously ill? "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. ADP helps organizations of all types and sizes unlock their potential. Learn how we can tackle your industry demands together. A) It may be expressed as assets + liabilities = owners' equity. expenses are, the lower the profitability will be. * CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. a wrong answer. 12. Employers use the employee's earnings record in preparing ___. Factory payroll costs in cash. To which items is information from the payroll register transferred? 2. Saleofequipmentforcash.TypeofActivityOCashInfloworOutflowCO. Prior year's earnings < Prev 18 of 40 . the payroll? Free True False Q03 Computing the sum of rows and columns is known by the term Multiple Choice Q04 Where is one place that information from the payroll register would not be transferred? All salaried employees. - Michalis M. FICA (FICA is the acronym for Federal Insurance Contribution Act. What is the role of enhancing qualities in the conceptual framework? Learn more about Privacy at ADP, including understanding the steps that weve taken to protect personal data globally. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Requirements: Record the deduction for group insurance. 38. 9. A payroll register is the record for a pay period that lists employee hours worked, gross pay, net pay, deductions, and payroll date. D) It must wait until the next financial period to record the payroll data. ERISA provides for full vesting of the employer's contributions in three years or gradually over six. An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. 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. pay date. How are employees who do not have bank accounts paid by an employer who uses an electronic fundstransfer system for payroll. department. Current period taxable earnings for FICA taxes are as. Social Security tax payable 221 10,517. B. ERISA requires each employer to establish a pension plan. C) It must remain in balance at all times. Discover what others say about us. Jun 23 Wages and. 5. 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. An employee is hired at a pay rate of $10 per hour. Simplify and unify your HCM compliance processes. 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. A. Payroll registers show employers just how much money they need to set aside for payroll expenses, such as the following: In the event of an audit, these records of payroll expenses can help make the process as pain-free as possible. & \text{ } & \text{ }\\ Paymentofanaccountpayable. Payroll registers include all of the information in a pay period for all employees. In other words, a payroll register is the document that records all of the details about employees' payroll during a period. How do accrued, but not paid, wages appear on the balance sheet? Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. 5. TransactionTypeofActivityCashInfloworOutflow1. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. 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. 18 must it do to recognize the liabilities and expenses? To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. B) It is always expressed as assets = liabilities - owners' equity. ordinance is passed? 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. 4. Which of the following is not a provision of FLSA? DEBIT CREDIT DEBIT CREDIT Wages and salaries payable 226 202,671. The payroll register is a separate payroll record that is kept on each employee. B) Posting ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. 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. For fill-in-the-blank questions, press or click on the blank space provided. Cash 101 117,334. Health Insurance payable 224 8,375. Employers use the employee's earnings record in preparing ___. ls the payroll register used for journalizing the payroll entries? Zipperle Company has the following payroll information for the pay period ending September 18, lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? McHale Enterprises has the following incomplete General Journal entry for the most recent pay Employees with less than a five year tenure of employment. The company does not provide health insurance, paid vacations, or any other benefits. 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--. 64. B) Employee earnings record C) Social Security tax, $746; Medicare tax, $174. entry? Wages and salaries payable 226 ??? Make payments. Wages Payable-liability BALANCE DATE DESCRIPTION POST REF. B) The income statement A) It is a list of all persons and companies that the company pays money during a period. Type an equals sign (=) to signal the fact that the cell contains a formula. & \text{ } & \text{ }\\ FICA Taxes payable-HI-liability DATE DESCRIPTION POST REF. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? How does the FIFO method different from the weighted-average method? 40. Correct answer: Option (1) Medicare tax is the correct answer. A) $399,472. Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? D) Personnel file Click the card to flip Definition 1 / 66 True Click the card to flip Flashcards Learn Test Match Created by lauraberth67 Terms in this set (66) Does every state have state unemployment laws? Withholding" and "Earnings subject to FICA"? Most office supply stores also carry books that are formatted specifically to record payroll information. A) It is employee labor that may be billed to customers. 10. Medicare tax payable 222 ??? \text{11. Which of the following is true of employee's earnings record? Savings bonds payable 227 1,850. Single click A) Both columns contain information about the employer's tax matching responsibilities. C) Debit $ D) The balance sheet B) It facilitates accuracy in employee payroll tax computations. Jul 1 Wages and salaries payable 226 113,562. Are FICA taxes levied upon employers only? Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO.