With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. C) Labor reports Issuance of common stock.} A) It must credit the asset accounts for the appropriate payroll amounts. A) Form W- D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? File, adjust, and print returns and reports. Single click 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. In other words, a payroll register is the document that records all of the details about employees' payroll during a period. Rushing River Boats has the following data in its Social Security tax payable General Ledger How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? 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 Collectionofnotesreceivable.8. entry? Collectionofnotesreceivable. Time worked - regular & overtime 7. Less than five have large-screen TVs? Saleofequipmentforanotereceivable.10. C) Debit $ B) It facilitates accuracy in employee payroll tax computations. ADP and the ADP logo are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. Jan 31 J4 420 1, DEBIT CREDIT DEBIT CREDIT 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. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Which of the following is not a provision of FLSA? Employers can exempt the following employees from the Family and Medical Leave Act. When a firm has wages earned but not yet paid at the end of a financial reporting period, what B) The account appears fourth in the list of liability accounts. 10. Protection under the provisions of the Age Discrimination in Employment Act begins at what age? so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. 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. Dont take our word for it. A) Employee pay accrual and employee pay disbursement Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. pay Health Insurance payable 224 8,375. From recruitment to retirement, getting the very best out of your people. 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. Garnishment $ 450. tax Remittance on February 15? B) $15,298. B) Debit $30, All earnings are taxable. A. ERISA applies to pension and welfare plans established by any employer engages in commerce. 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. C) It must pay its employees for the wages earned as of that date. Payroll journals are records of all payroll transactions. Didier and Sons had the following employer's share payroll tax general journal entry for the May 1. 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. The highest-paid 10 percent of their workforce. 54. 41. 2. A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. *Graph the equation using the slope and $y$-intercept, as in the Previous Examples. 59. c. More than five have large-screen TVs? Sets minimum wage. Does workers' compensation laws only relate to work-related incidents? lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? 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. A) It allows managers to determine the effect of employee labor on departmental profits. Marital status & number of withholding allowances 6. D) General journal numbers 55. The payroll register contains ________. Multiple Choice. 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. How might globalists and traditionalists view cultures, places, and regions differently. Only "A payroll register" and "The employee's earnings record" are correct. B) It depicts the ideal distribution of labor in a firm. This will increase What must the employer do with unclaimed checks. In a sample of nine homes, what is the probability that: a. In Philadelphia, Pennsylvania, most workers are subject to three income taxes upon their earnings - federal state and city. Current period taxable earnings for FICA taxes are as. Rate of pay 8. C) As expenses Are FICA taxes levied upon employers only? E. Sex, Which of the following statements is NOT a provisions of ERISA? To which items is information from the payroll register transferred? Wages and salaries payable 226 ??? the payroll? accurate disbursal of payroll. B. ERISA requires each employer to establish a pension plan. 65. & \text{ } & \text{ }\\ Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? E. All of the above are provisions of ERISA. You face specific challenges that require solutions based on experience. the total expenses of the firm and decrease the net income of the firm. E. Highest-paid 10% of their workforce. Get exclusive business insights delivered straight to your inbox. Were reimagining what it means to work, and doing so in profound ways. D) $1,875. D. FMLA Transfer of finished jobs to the finished goods inventory. C) It is the fourth repetition of the same entry. C. FLSA On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. For fill-in-the-blank questions, press or click on the blank space provided. Basic payroll register templates can be found online or created in programs like Excel. Can employees view documents in their files that are marked confidential? \begin{matrix} grass clippings at the curb for pickup because local landfills cannot handle the volume. Federal withholding tax $ 3,570. 58. A) It is the fourth entry in the General Journal on that date. 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. Direct materials usage. D) Credit $. A payroll register can also . & \text{ } & \text{ }\\ & \text{ } & \text{ }\\ Columns included in the payroll register to compute net pay may include which of the following? Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. Payroll registers generally are more detailed than payroll journals and include specific information about each employee. The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. Record the health insurance deduction. C) Credit $1, A) Form W- B) Payroll register D) A debit balance will increase the income of the firm's income statement. The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. B) Employee pay remittance and voluntary deduction remittance Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. It Q09. True False. C) Credit $4, * \text{12. serves as a backup in the event of computer failure. 27. 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. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). B) Both documents contain information about the employee's address and job title. D. Religion What does the Civil Rights Act of 1954 cover? B) General Journal How does the payroll register connect with the employees' earnings records? Quickly connect ADP solutions to popular software, ERPs and other HR systems. b. 31. D) Debit $8. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? The primary payroll journal entry is for the initial recordation of a payroll. The company does not provide health insurance, paid vacations, or any other benefits. D) It adds complexity to the payroll register. 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. 60. employees' payroll, one for the employer's share of the taxes. C) Cross-referencing 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? How will payroll deductions from employees wages for their portion of 401K plans be recorded? What does the term "billable time" mean as it pertains to payroll accounting? D) The transaction appears on page four of the General Journal. Loantoanotherfirm. Name two advantages and two drawbacks of Prior year's earnings < Prev 18 of 40 . & \text{ } & \text{ }\\ \text{9. 5. Copyright 62. expense 522 $ 12,987. B. ERISA Any boxes Left with a question mark will be automatically graded as incorrect.) A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. Under FMLA, the time must be used in one uninterrupted period of time. question mark Will be automatically graded as incorrect.) Union Dues payable 227 4,683. D) information about the firm's liabilities Purchaseofinventory.7. Complete the steps outlined below: 1. Copyright 2023 AccountingCoach, LLC. D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 D) Federal withholding tax payable Gross pay and net pay. DATE DESCRIPTION POST REF. NAME MARITAL STAT. Report changes to your business. Apr 16 J23 16,495 32. D) Health insurance payable A payroll register is a valuable tool that records employee wage information for each pay period and pay date. What is your sisters total cost under each of the two plans? 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. Savings bonds payable 227 1,850. A) It should create a reminder about the accrual to ensure accuracy of computations on the next Under FLMA, do any states have paid a family leave plan? On which financial report will employer-paid portions of health insurance premiums be listed? Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. Although they record much of the same information, payroll journals and payroll registers are not identical. 8. Pre-hire questions pertaining to religion, gender, national origin, or age are allowed if: Which of the following forms is used to notify the Payroll Department to add a new employee to the payroll? 10. A. ADEA \text{10. C) proof of payroll deposits 66. E. 65, Which of the following is not a provision of the Fair Labor Standards Act? Issuance of bonds.} 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? What are the main kinds of information contained in a payroll register? You can enter a formula into a cell manually (typing it in) or by pointing to the cells. date: Oct 27 Wages and salaries expense 522 $298,384. 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. 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. They must disclose to the job applicant that they are seeking an investigative report. Purchase of treasury stock.} The employers total expense for Marys employment during the week is. ls the payroll register used for journalizing the payroll entries? B) Employee earnings record A) It may be expressed as assets + liabilities = owners' equity. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. B) FUTA Use the information in the previous exercise to prepare journal entries for the following events in May. This entry may be avoided if the amount is immaterial. What portions of an employee's wages are exempt from a federal tax levy. Paymentofemployeesalaries.2. 1. At December 31, 2022 the employee's pay rate was $15. Wages Payable-liability Does every state have state unemployment laws? Age HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. A) the beginning and ending dates of the pay period 38. From best practices to advice and HR consulting. Jan 19 Wages and salaries payable 226 8,134. 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. Why does company profitability decrease in direct proportion to the payroll expenses? For what reason are "distribution" columns sometimes provided in the payroll register? Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. These details include the employee id number, the department they belong, their job profile, etc. Information available through a secured web sit, kiosk, or interactive voice response system. Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? This entry records the gross wages earned by employees, as well as all withholdings from their pay, and any additional taxes owed to the government by the company. D. 50 The purpose of payroll register is to record of all the payment details for employees during a specific pay period. 40. 56. C. Restrictions the employment of child labor. in sin did my mother conceived me meaning B) It contains a detailed listing of every transaction during a period. 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. Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? 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? 1. Identify distinctive compensation plans. A) Because payroll represents an asset and an income of the business. 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. Employees with less than a five year tenure of employment. & \text{ } & \text{ }\\ B) tax remittance information 11. & \text{ } & \text{ }\\ The first answer is provided as an example. This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. True False. What is general priority order concerning wage attachements. The higher payroll At ADP, we say that were Always Designing for People, starting with our own. A) By order of importance Purchase of inventory.} 28. 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.
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