Access the definitive source for exclusive data-driven insights on todays working world. FICA Taxes Payable-OASDI-liability False, Two complete payroll-related General Journal entries are recorded each pay period: one for the Prior year's earnings < Prev 18 of 40 . Raw materials purchases for cash. 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? Under FLSA, what is the current minimum wage? A payroll register is the record for a pay period that lists employee hours worked, gross pay, net pay, deductions, and payroll date. Requirements: Record the deduction for group insurance. The key types of payroll journal entries are noted below. Switching payroll service providers made easy. FICA (Federal Insurance Contributions Act). Payment of an account payable.} 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? How will payroll deductions from employees wages for their portion of 401K plans be recorded? An employee is hired at a pay rate of $10 per hour. DATE DESCRIPTION POST REF. The payroll register contains ________. How does a debit balance in the wages and salaries expense account affect a firm's income Rushing River Boats has the following data in its Social Security tax payable General Ledger Paymentofincometaxes. Report new employees or independent . Under FLMA, do any states have paid a family leave plan? 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 & \text{ } & \text{ }\\ Which act covers employee pension and welfare plan.? Find payroll and retirement calculators, plus tax and compliance resources. 8. 1. Gross pay and net pay. 11. How do accrued, but not paid, wages appear on the balance sheet? Entitled to retirement program even if you're no longer working there. C) Alphabetically Employee Earnings Record: What It Is and How to Use It 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;. A) It should create a reminder about the accrual to ensure accuracy of computations on the next Wages and salaries payable 226 ??? C) It should disburse the accrued pay to the employees. 9. D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 A) Net pay Todays digital landscape means limitless possibilities, and also complex security risks and threats. Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. Compute and record the employee's SUTA contributions. C) It allows payroll employees to divert funds into faux accounts. Any boxes Left with a question mark will be automatically graded as incorrect.) 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. (You may select more than 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? C) Because payroll represents a liability and an expense of the business. This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. Yes, Employees FIT Payable . At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA? C) Debit Health Insurance Payable $13,618; Credit Cash $13,618. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Issuanceofcommonstock. b. C) Payroll accounts do not appear on the trial balance because of their changeable nature. All rights reserved.AccountingCoach is a registered trademark. Security taxes? A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. & \text{ } & \text{ }\\ A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. At ADP, we say that were Always Designing for People, starting with our own. True, A debit always decreases the balance of an account. Regardless of the format, payroll registers tend to follow the same basic structure. Does workers' compensation laws only relate to work-related incidents? In cases where both Federal and State regulations cover the minimum wage for the same employee, the high of the two rates is always used as the standard minimum wage. B. 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. Medicare tax payable 222 4,205. Hours worked. Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month? 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. ls the payroll register used for journalizing the payroll entries? This guide is intended to be used as a starting point in analyzing an employers payroll obligations and is not a comprehensive resource of requirements. \text{13. answer to payroll project chapter 7.xlsx - JOURNAL DATE 9. Quiz 6: Payroll Register, employees Earning Records, and Accounting Continuing Payroll Problem-B OLNEY COMPANY, INC. Loan to another firm.} 59. \begin{matrix} D. FMLA Fair Labor Standards Act (Federal Wage & Hour Law). At ADP, we are committed to unlocking potential not only in our clients and their businesses, but in our people, our communities and society as a whole. D) Credit $. B) Equity What are the General Journal entries that should appear on each pay date? D) $1,875. Transaction1. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do May 14 Wages and salaries payable 226 117,334. 3. Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? TransactionTypeofActivityCashInfloworOutflow1. Payroll Register This is the first task to completing Olney Company's payroll register. The Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. C. National Origin 4. 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. $y = -x - 4$. depositor, what entry Should appear on November 15 for the remittance of the month's Social 4. & \text{ } & \text{ }\\ 58. What does the term "billable time" mean as it pertains to payroll accounting? C) the name of the firm and the payroll accountant 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? account: Social Security tax payable ACCOUNT NO. 20XX: Gross pay $ 27,894. Verify the date and enter General as the reference. Federal income tax payable 11,955. For the entry on January 31, what does the J4 signify? B) It is employee labor that does not pertain to labor on customer jobs. 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? Administrating the state unemployment taxes. FIT Payable-liability B) Debit Cash $13,618; Credit Health Insurance Payable $13,618. Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. \ True, The information in the payroll register forms the basis for entries in the Employee Earnings Union Dues Payable-liability AIS g Payroll Flashcards | Quizlet 27. 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. Using the accounting equation, determine the following amounts: a. Owners equity as of December 31, 2013. C) Employee pay disbursement and voluntary deduction remittance False. A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. Purchaseofinventory. 12. D) The same as the chart of accounts Single click Here is the payroll journal entry to record the payment of the paycheck: Payroll Journal Entry Example 1 Notice the Wage Expense is debited for the gross pay. Explain the use of the "Cumulative" column in the employee's earnings record. 2. 62. Collectionofanaccountreceivable. Cross), Give Me Liberty! Get inspired to begin transforming HR at your company. The employers total expense for Marys employment during the week is. Wages and salaries-Operating expense-debit Use the following information for Questions 15 - 17: Hence, no need to accrue any salaries. Payroll Test #1 Flashcards | Quizlet the box with the question mark to produce a check mark for a correct answer and double click Calculate regular and overtime pay. A) $399,472. 3. Collection of an account receivable.} A) $1,582. & \text{ } & \text{ }\\ Payroll Accounting quiz 6 Flashcards | Chegg.com A) It communicates departmental profitability. McHale Enterprises has the following incomplete General Journal entry for the most recent pay The highest-paid 10 percent of their workforce. 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? Forbids discrimination in hiring. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? Ch. 1 Payroll Flashcards | Quizlet Transfer of finished jobs to the finished goods inventory. Which of the following is NOT part of the social security program? On which financial report will employer-paid portions of health insurance premiums be listed? C. ERISA establishes minimum vesting schedules that protect the workers' benefits. account: ACCOUNT Federal withholding tax payable ACCOUNT NO. The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. C) It is a report designed for external stakeholders. Does every state have state unemployment laws? A) The income statement In January 2023 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2022. Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? 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. Does every state have both federal and state unemployment laws? To prohibit discrimination on the basis of age in the employment practices of employer. You face specific challenges that require solutions based on experience. B. D) Debit Health Insurance Payable $27,237; Credit Cash $27,237. A. ADEA 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. BALANCE DATE DESCRIPTION POST REF. pay Paymentofincometaxes.9. B) Social Security tax, $792; Medicare tax, $204. \text{7. 30. Social Security tax $ 1,670. Purchaseoftreasurystock.14. 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. Read more about the author. Wages Payable-liability Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. < Prey 18 of 40 Pay period dates. D) One side of the equation must equal zero. Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. A) Employee earnings record What is the amount of the 401(k) contributions for the pay date? question mark Will be automatically graded as incorrect.) A) The total of the debits must equal the total of the credits. in sin did my mother conceived me meaning Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. B) $2,572. A) The statement of owners' equity 53. Saleofequipmentforanotereceivable. business. mark to empty the box For a wrong answer. D) As liabilities Safe-guards your retirement plans *not required to have a pension plan. Every state imposes a state unemployment tax on employers in their state. 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. Garnishment $ 450. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? Simplify and unify your HCM compliance processes. Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. Dont take our word for it. Another important step in maintaining a payroll register is to perform audits. A payroll register lists all basic information related to employee take-home pay. 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. Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? Age 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. What are the main kinds of information contained in a payroll register? \text{1. On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. The first answer is provided as an example. This entry may be avoided if the amount is immaterial. B) Because payroll represents an asset and an income of the business. To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. True (California, New Jersey, New York & Rhode Island). How does the payroll register connect with the employees' earnings records? D) It may contain whatever accounts the accountant wishes to include. \text{10. False - also needs to be a reasonable amount. \text{9. D) It is non-employee labor that the company must pay. In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. must it do to recognize the liabilities and expenses? You can think of it as a summary of all the payroll activity during a period. Solved Columns included in the payroll register to compute - Chegg C) It is the fourth repetition of the same entry. Paymentofanaccountpayable.15. Which of the following reports links the accounting and the human resources departments? \text{11. Time worked - regular & overtime 7. Any boxes left with a question mark will be B) Total overtime earnings B) Both documents contain information about the employee's address and job title. department. Are pre-hire questions pertaining to religion, gender' national origin' or age allowed if these are bona fide occupational requirements of the job? Listed below are several transactions. A) the beginning and ending dates of the pay period 15. But if you follow these seven steps, you can learn how to account for payroll with ease. Paymentofemployeesalaries.2. d. Occupational Safety and Health Act B) the total gross pay, deductions, and net pay during the period D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? There will also be credits to a number of . All salaried employees. February 7 Journalize the employer . What is meant by the garnishment of wages? 6. SUTA tax payable 9,481. Union Dues payable 227 4,683. 40. A) Employee earnings record 57. Protection under the provisions of the Age Discrimination in Employment Act begins at what age? 9. Collectionofnotesreceivable. Payroll Register | What It Is, What Is On It, & More - Patriot Software Title of report 2. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). Payroll Accounting 2018 CH 7 Flashcards | Quizlet Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? Fair Labor Standards Act 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. Want more exclusive business insights like this delivered to your inbox? The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. B) It contains a detailed listing of every transaction during a period. Records and the General Journal. What entry should appear in the General Ledger to reflect the & \text{ } & \text{ }\\ 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? Single click the box with the question mark to produce a check mark for a correct Recording Payroll and Payroll Liabilities - Accounting In Focus 11+ Payroll Register Templates in PDF 220 If the expected returns are 3.8%3.8 \%3.8% for the T-bills, 12.3%12.3 \%12.3% for the large-company stocks, and 17.4%17.4 \%17.4% for the small-company stocks, what is the expected return of the portfolio? Net pay $ 19,747. 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. 14. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? D) Employee pay recording and employer share payroll taxes recording 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. Questions pertaining to religion, gender, national origin, or age are allowed on application forms when these are bonafide occupational qualifications for a job.