When the employer pays the employee in 2023 for the vacation earned in 2022, what account will the company debit? Does FLSA require the employer to display a poster with the FLSA rules? 401(k) contributions payable 223 454. C) It is non-traceable labor that a company must absorb as overhead. \text{15. B) Debit $30, 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. There will also be credits to a number of . the total expenses of the firm and increase the net income of the firm. A) Employee earnings record How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. What is meant by the garnishment of wages? May criminal background checks be used by all employers for any person? b. Form W-2 A) Debit $1, Our online store for HR apps and more; for customers, partners and developers. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . c. More than five have large-screen TVs? Marital status & number of withholding allowances 6. True, The information in the payroll register forms the basis for entries in the Employee Earnings C) It is a worksheet that accountants use to ensure payroll accuracy. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. Get inspired to begin transforming HR at your company. C) Employee pay disbursement and voluntary deduction remittance Regardless of the format, payroll registers tend to follow the same basic structure. Required: 1. 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. $y = -x - 4$. d. Occupational Safety and Health Act The Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. 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. You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. Which of the following is not a provision of ERISA? Issuance of common stock.} The payroll register for Nazir Corporation contained the following totals at the end of July: wages, $139,125; federal income taxes withheld, $35,582; state income taxes withheld, $5,863;. D) The balance sheet Issuanceofcommonstock.6. 6. 1. A payroll register does not include: Multiple Choice Pay period dates. A payroll register is tool that records wage payment information about each employee - gross pay, deductions, tax withholding, net pay and other payroll-related information - for each pay period and pay date. \text{3. B) Payroll register How does the payroll register connect with the employees' earnings records? in sin did my mother conceived me meaning Report changes to your business. Which basic records are generated in most payroll accounting systems? ls the payroll register used in preparing the Form W-2? & \text{ } & \text{ }\\ How does a debit balance in the wages and salaries expense account affect a firm's income & \text{ } & \text{ }\\ The Federal Insurance Contributions Act covers restrictions on the employment of child labor. B) The labor report, C) The statement of owners' equity 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. 38. Payroll register and employees' earnings records are important payroll accountant tools Tracking of governmental liabilities Yields the data needed for financial reports Provides information for decision-makers about costs and company profitability Accounting system entries record all payroll-related activity 4. Authorize a power of attorney. The ___ is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period. Employers use the employee's earnings record in preparing ___. 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? 55. Define hours worked. FICA (Federal Insurance Contributions Act). & \text{ } & \text{ }\\ below deck mediterranean 2022 cast. True Which of the following is true of employee's earnings record? 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. False, Two complete payroll-related General Journal entries are recorded each pay period: one for the FUTA tax payable 1,322. During the past week, the employee worked 50 hours. Saleofequipmentforanotereceivable.10. How are employees who do not have bank accounts paid by an employer who uses an electronic fundstransfer system for payroll. C) Debit Health Insurance Payable $13,618; Credit Cash $13,618. Gross pay and net pay. Want more exclusive business insights like this delivered to your inbox?Subscribe now. 9. 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. Continuing Payroll Problem-B OLNEY COMPANY, INC. C) Form W- 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. a wrong answer. Using the accounting equation, determine the following amounts: a. Owners equity as of December 31, 2013. Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. A payroll register is tool that records wage payment information about each employee gross pay, deductions, tax withholding, net pay and other payroll-related information for each pay period and pay date. 221 Wages Payable-liability Single click the box with the question Its easier to keep accurate payroll records and run reports quickly with payroll software. D) Debit $8. D) Form 941 ls the FUTA tax used to pay unemployment benefits? How does the FIFO method different from the weighted-average method? so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. Dont take our word for it. D) One side of the equation must equal zero. D) It highlights issues and results of seasonal labor. 8. In other words, a payroll register is the document that records all of the details about employees' payroll during a period. Calculate regular and overtime pay. Vacaction Benefits Payable- liability. Sale of equipment for cash.} But if you follow these seven steps, you can learn how to account for payroll with ease. SUTA Taxes Payable-liability This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Paymentofalong-termnotepayable.13. & \text{ } & \text{ }\\ To which items is information from the payroll register transferred? With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. Read more about the author. Which financial statements are affected in the year 2022? Hence, no need to accrue any salaries. C) SUTA \text{2. Deductions. B) Equity Loan to another firm.} 66. account: ACCOUNT Federal withholding tax payable ACCOUNT NO. the total incomes of the firm and decrease the net income of the firm. B) the total gross pay, deductions, and net pay during the period Collectionofanaccountreceivable.5. Who are the winners and who are the losers when the minimum wage is increased? A) Form W- C) Alphabetically D) The transaction appears on page four of the General Journal. Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. You can think of it as a summary of all the payroll activity during a period. Collection of an account receivable.} B) Debit Cash, $250,000; Credit Revenue, $250, Withholding" and "Earnings subject to FICA"? Compute and record the Kipley Company's SUTA and FUTA contributions. 30. Social Security tax payable ??? McHale Enterprises has the following incomplete General Journal entry for the most recent pay Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. Net pay $ 19,747. Under the U.S. payroll tax a employee has to pay the tax on hi . A) Revenue 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. True, A debit always decreases the balance of an account. entry? Age How do the Stanford-Binet and Wechsler tests differ? C) Cross-referencing I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." Payroll journal entries are used to record the compensation paid to employees. *Graph the equation using the slope and $y$-intercept, as in the Previous Examples. Multiple Choice. These computations are shown in the Employee Payroll Register. Dont just take our word for it. Paymentofemployeesalaries.2. You face specific challenges that require solutions based on experience. Time worked - regular & overtime 7. Recorded as a liability for the employer in the payroll entry. B. C) The balance sheet Answer : Option E, Prior Years Earnings Explanat . 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. The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. 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. 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. D) Personnel file C) It is the fourth repetition of the same entry. The lower payroll It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. D) information about the firm's liabilities Multiple Choice Q05 \text{4. Exempt salaried employees are often paid for their work right up to payday. C) It is a report designed for external stakeholders. Every state imposes a state unemployment tax on employers in their state. box for a wrong Answer. tax Remittance on February 15? chronologically. C) Employee signature Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. the health Insurance is qualified under Section 125? Forbids discrimination in hiring. & \text{ } & \text{ }\\ Collectionofnotesreceivable. 2. Basic payroll register templates can be found online or created in programs like Excel. Your portfolio has three asset classes. February 7 Journalize the employer . B) Social Security tax, $792; Medicare tax, $204. B) Payroll register Keeping vital payroll data up to date and easily accessible is essential for employers to address unexpected discrepancies without confusion. At ADP, we believe sports and business both require the right approach. 31. DATE DESCRIPTION POST REF. 3. 401(k) contributions payable 223 ??? Its best practice to audit payroll every pay period. employees' payroll, one for the employer's share of the taxes. 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. Total Earnings 9. The company does not provide health insurance, paid vacations, or any other benefits. 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. D) Both documents contain details of employee earnings, deductions, and disbursement for a B) It depicts the ideal distribution of labor in a firm. ADP helps organizations of all types and sizes unlock their potential. 18 D) Credit $30. Apr 16 J23 16,495 32. Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? A. ADEA Payroll-Operating expense-liability A magnifying glass. This information is also reflected in summary level entries in the businesss general ledger. the box With the question mark to empty the box for a wrong answer. Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. Loantoanotherfirm. What is true about the trial balance? Yes, Employees FIT Payable . 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. Your sister currently uses 1,700 minutes and sends 1,600 texts each month. Social Security tax $ 1,670. \text{Transaction} & \text{Type of Activity} & \text{Cash Inflow or Outflow}\\ \hline Compute and record the employee's SUTA contributions. expenses are, the lower the profitability will be. 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? It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. D) $1,875. (You may select more than one answer. Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? Once vested, can employees receive a pension at retirement even if they no longer work for that company? Workers' compensation insurance premiums are paid for by the employees, Workers' compensation insurance premiums vary according to the different degrees of danger in the employees' jobs. What are some examples of secondary sex characteristics? 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? 53. 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. 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. What are the main kinds of information contained in a payroll register? Factory payroll costs in cash. What is the term for transferring data from the General Journal to the General Ledger? Complete the steps outlined below: 1. Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. pay date. 11. D) Transcribing Accounting questions and answers. Purchaseofinventory.7. A) the beginning and ending dates of the pay period ordinance is passed? Payroll Register This is the first task to completing Olney Company's payroll register. automatically graded as incorrect.) 2. B) Debit $4, & \text{ } & \text{ }\\ A) A debit balance will increase the expenses of the firm's income statement. Any Boxes left with a question mark will be automatically graded as incorrect.) To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. Less than five have large-screen TVs? 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? FIT Payable-liability (You may select more than one answer. A. 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? 18. The primary payroll journal entry is for the initial recordation of a payroll. HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Payroll journals are records of all payroll transactions. A) $399,472. Payment of an account payable.} 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. These liabilities accompany every payroll you run. To rule the payroll register means that the payroll accountant establishes procedures about the payroll register. incorrect.) 6. Sale of land for cash.} Learn more about Privacy at ADP, including understanding the steps that weve taken to protect personal data globally.