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. Hence, no need to accrue any salaries. ordinance is passed? Federal withholding tax payable 220 $ ??? Learn how we can tackle your industry demands together. Calculate regular and overtime pay. C) Labor reports Explain the major provisions of the Fair Labor Standards Act. What are the General Journal entries that should appear on each pay date? D) It must wait until the next financial period to record the payroll data. BALANCE Health Insurance Premiums Collected-liability Your portfolio has three asset classes. True False. Deductions from total earnings 10. In this last task, the following steps will be completed. Sale and delivery of finished goods to customers for cash (record unadjusted cost of sales). Medicare tax payable 222 ??? A) The total of the debits must equal the total of the credits. Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. Payment of a long-term note payable.} Wages and salaries payable 226 ??? These entries are then incorporated into an entity's financial statements through the general ledger. McHale Enterprises has the following incomplete General Journal entry for the most recent pay ls the payroll register used for journalizing the payroll entries? 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. Which of the following acts prohibits discriminating in hiring, firing, promoting, compensating, or in nay other condition of employment on the basis of race, color, religion, gender, or national origin? The town is considering an ordinance that would prohibit putting How to do payroll accounting: 7 steps At first glance, payroll accounting can be scary. Employee benefits, flexible administration, business insurance, and retirement plans. Under FMLA, the time must be used in one uninterrupted period of time. \ According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? 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. expense 522 $ 182,930. Issuance of bonds.} What is the amount of the 401(k) contributions for the pay date? D) Debit Health Insurance Payable $27,237; Credit Cash $27,237. How does the FIFO method different from the weighted-average method? 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 In January 2023 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2022. incorrect.) 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. 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. E. All are provisions of FLSA. It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. B) It is always expressed as assets = liabilities - owners' equity. Social Security tax $ 1,670. FICA Taxes payable-HI-liability 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. Jan 31 J4 420 1, D) Employee pay recording and employer share payroll taxes recording 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. 63. C) It must remain in balance at all times. Direct materials usage. 12. ADP and the ADP logo are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. 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. 3. The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries. What options might Hazel consider if the Paymentofincometaxes.9. A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. This will increase 27. To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. Marital status & number of withholding allowances 6. B) It depicts the ideal distribution of labor in a firm. Listed below are several transactions. Which of the following represents the missing Social Security and Medicare taxes, assuming that. 401(k) contributions payable 223 454. A) Debit R. Sanders Capital, $250,000; Credit Cash, $250, Purchaseoftreasurystock.14. 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? A. Withholding" and "Earnings subject to FICA"? 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. 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? B. ERISA the box With the question mark to empty the box for a wrong answer. \text{5. 15. For fill-in-the-blank questions, press or click on the blank space provided. Who are the winners and who are the losers when the minimum wage is increased? Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. 30. D) $1,875. 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. & \text{O} & \text{CO}\\ so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. We have credited a liability account for each of the tax amounts. Required: 1. Gross pay and net pay. Purchaseofinventory.7. Prior year's earnings < Prev 18 of 40 . statement? e. None of the above. Q08. 21 False. B. ERISA requires each employer to establish a pension plan. accurate disbursal of payroll. What is the current minimum wage under FLSA? Payroll Register This is the first task to completing Olney Company's payroll register. 9. Collection of notes receivable.} All of these journal entries are noted below. 13. C) A debit balance will decrease the expenses of the firm's income statement. There may be an accrued wages entry that is recorded at the end of each accounting period, and which is intended to record the amount of wages owed to employees but not yet paid. The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. C) $12,576. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). D) The balance sheet Name of each employee 5. B) Payroll register What is the effect of each of the following posting upon the assets, liabilities, and owner's equity of a company. How do accrued, but not paid, wages appear on the balance sheet? Besides payroll information, the payroll register contains ________. under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. It records payroll record on each employee separately. Total Earnings 9. C) As expenses Which report contains employer share tax expenses for a period? Age What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? Medicare tax payable 222 4,205. Which basic records are generated in most payroll accounting systems? 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) Net pay B) FUTA What is the term for transferring data from the General Journal to the General Ledger? Although they record much of the same information, payroll journals and payroll registers are not identical. B) $15,298. What is true about the trial balance? \text{6. Who is covered by the Walsh-Healey Public Contract Act? C) Social Security tax, $746; Medicare tax, $174. Issuanceofbonds. Assume that the company uses the accrual method of accounting. Plan A costs $80 per month for unlimited talk and text. A) Employee earnings record 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. Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. Purchase of treasury stock.} FICA Taxes Payable-OASDI-liability D) 401(k) contributions B) the total gross pay, deductions, and net pay during the period True, A debit always decreases the balance of an account. Our online store for HR apps and more; for customers, partners and developers. A) Form W- Employee FIT Payable-liability Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. A) It allows managers to determine the effect of employee labor on departmental profits. C) Debit Revenue, $250,000; Credit Cash, $250, Which of the following is not a provision of FLSA? Which of the following is not a provision of ERISA? CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. D) Both documents contain details of employee earnings, deductions, and disbursement for a A. Issuanceofcommonstock. 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%. C) Both documents contain information from multiple pay periods. Regardless of the format, payroll registers tend to follow the same basic structure. This entry may be avoided if the amount is immaterial. PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. True False. True, In the General Ledger, the debit column reflects the balance of the account. C) Form W- b. Safe-guards your retirement plans *not required to have a pension plan. A magnifying glass. An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. Which of the following is an example of a trade association? Which financial statements are affected in the year 2022? To which items is information from the payroll register transferred? For example, there may be deductions for 401(k) pension plans, health insurance, life insurance, vision insurance, and for the repayment of advances. May criminal background checks be used by all employers for any person? A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month? 2. There will also be credits to a number of accounts, each one detailing the liability for payroll taxes that have not been paid, as well as for the amount of cash already paid to employees for their net pay. tax Remittance on February 15? 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. 7. D) It should create a reversing entry in the General Journal. *Graph the equation using the slope and $y$-intercept, as in the Previous Examples. C) Employee signature Deductions. Apr 16 J23 16,495 32. 39. 4. Loan to another firm.} The total of each distribution column shows the total amount of that department's wage expense. Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. FIT Payable-liability Authorize a power of attorney. What are the General Journal entries that should appear on each pay date? This will increase the Direct labor usage. A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. Which of the following acts levies a tax on employers and employees that is credited to the Federal Old-Age and Survivor's Trust Fund and the Federal Disability Insurance Trust Fund? With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. D) Transcribing check mark For a correct answer and double click the box with the question mark to empty the B) It must create an adjusting entry to recognize the payroll accrual. Based on the following data, prepare the appropriate journal entry when paying employees: Total wages earned were $8000 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. 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. 2. 66. 40. chronologically. & \text{ } & \text{ }\\ Which of these employee types is an allowable exeption to the protection of the Age Discrimination in Employment? C) the name of the firm and the payroll accountant Does workers' compensation laws only relate to work-related incidents? 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? A) Credit $8, \text{11. 4. B) It is employee labor that does not pertain to labor on customer jobs. Forbids discrimination in hiring. D. Requires equal pay for equal work, regardless of gender. B. C) It must pay its employees for the wages earned as of that date. Report new employees or independent . Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? How does a payroll accountant keep track of employee's year-to-date earnings for wage bases 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 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. Form W-2 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. 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? How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? Which of the following is true about the fundamental accounting equation? B) tax remittance information D) It highlights issues and results of seasonal labor. Feb 15 J All salaried employees. Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. What must the employer do with unclaimed checks. select more than one answer. C) Earnings subject to FICA tax The Federal Insurance Contributions Act covers restrictions on the employment of child labor. A payroll register can also . Cross), Give Me Liberty! The highest-paid 10 percent of their workforce. Continuing Payroll Problem-B OLNEY COMPANY, INC. C) Because payroll represents a liability and an expense of the business. \text{1. A) Employee pay accrual and employee pay disbursement Enchanted Creations has the following data in its Federal withholding tax payable General Ledger 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. C) Cross-referencing What does the Civil Rights Act of 1954 cover? At a minimum, payroll registers help businesses: But thats hardly the extent of how beneficial a payroll register can be. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. pay date. ls the payroll register used in preparing the Form W-2? A) It is a list of all persons and companies that the company pays money during a period. d. At least seven homes have large-screen TVs? 2. Saleofequipmentforcash. ls Form l-9 completed only by employees born in outside of the USA? 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. C) Labor reports 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--. But if you follow these seven steps, you can learn how to account for payroll with ease. C) It is non-traceable labor that a company must absorb as overhead. From recruitment to retirement, getting the very best out of your people. Switching payroll service providers made easy. NAME MARITAL STAT. the payroll? Your sister currently uses 1,700 minutes and sends 1,600 texts each month. \text{8. & \text{ } & \text{ }\\ Sets minimum wage. Current period taxable earnings for FICA taxes are as. 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 Vacation Benefits Expense-Operating expense Information available through a secured web sit, kiosk, or interactive voice response system. B) As equity 9. 64. Multiple Choice Q05 Complete the steps outlined below: 1. TransactionTypeofActivityCashInfloworOutflow1. Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? SUTA Taxes Payable-liability Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. Health Insurance payable 224 8,375. Medicare tax $ 390. B. ERISA requires each employer to establish a pension plan. What are the main kinds of information contained in a payroll register? 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. Payment of employee salaries.} Social Security tax payable 221 17,980. It records payroll record on each employee separately. 55. Learn more about the senior executives who are leading ADPs business. 65. Compute the employer's payroll taxes for the period. Collectionofanaccountreceivable. Workers' Commpensation Insurance Expense-Operating expense A) Social Security tax, $204; Medicare tax, $792. Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. \text{9. one answer. Any Boxes left with a question mark will be automatically graded as incorrect.) Once vested, can employees receive a pension at retirement even if they no longer work for that company? 14. We provide payroll, global HCM and outsourcing services in more than 140 countries. A) It may be expressed as assets + liabilities = owners' equity. View notices and letters. Describe the main types of records used to collect payroll data. What is your sisters total cost under each of the two plans? Sale of equipment for cash.} The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. A(n) ________ is a collection of cash and other items that are used in the operation of the