In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. Assume that the company uses the accrual method of accounting. B) It facilitates accuracy in employee payroll tax computations. For fill-in-the-blank questions, press or click on the blank space provided. Rushing River Boats has the following data in its Social Security tax payable General Ledger D) The transaction appears on page four of the General Journal. 12. ls Form l-9 completed only by employees born in outside of the USA? The town is considering an ordinance that would prohibit putting It records payroll record on each employee separately. Union Dues payable 227 4,683. Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. B) Employee earnings record C) It is a report designed for external stakeholders. C. 40 Wages and salaries-Operating expense-debit The Federal Insurance Contributions Act covers restrictions on the employment of child labor. accurate disbursal of payroll. This will increase What are the enhancing qualities of the qualitative characteristics? Jeremy is single with two withholding allowances. Which of the following are processes that occur in most payroll accounting systems? D) 401(k) contributions Yes, Employees FIT Payable . What is the A. 41. What is the amount of the 401(k) contributions for the pay date? Report changes to your business. See how we help organizations like yours with a wider range of payroll and HR options than any other provider. - Michalis M. FICA (FICA is the acronym for Federal Insurance Contribution Act. It A) It is employee labor that may be billed to customers. 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. Purchaseofrentinadvance. Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. Paymentofincometaxes. You can enter a formula into a cell manually (typing it in) or by pointing to the cells. What is the term for transferring data from the General Journal to the General Ledger? Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) Report new employees or independent . What are some examples of secondary sex characteristics? the total expenses of the firm and increase the net income of the firm. D) A debit balance will increase the income of the firm's income statement. What are the General Journal entries that should appear on each pay date? select more than one answer. Every state imposes a state unemployment tax on employers in their state. What is true about the trial balance? Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? Medicare tax payable 222 ??? so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. Apr 16 J23 16,495 32. Which items would be debited in the General Journal entry to record the employees' share of B) Equity How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? Under FLSA, what is the current minimum wage? 401(k) contributions payable 223 ??? What options might Hazel consider if the Saleofequipmentforcash.TypeofActivityOCashInfloworOutflowCO. 3. Which of the following is not a provision of ERISA? C) It must pay its employees for the wages earned as of that date. & \text{ } & \text{ }\\ B) Total overtime earnings Single click the box with the question E. OASDI. A) Debit R. Sanders Capital, $250,000; Credit Cash, $250, serves as a backup in the event of computer failure. The employers total expense for Marys employment during the week is. 11. Purchase of inventory.} The current minimum wage set by the Fair Labor Standards Act is $7.25 per hour, The FLSA imposes no record keeping requirements on employers, The employer is required by the FLSA to display a poster that informs employees of the provisions of the law, All states have set their minimum wage to be the same as the Federal government, Under the Federal Insurance Contributions Act, the Medicare portion of the tax is only paid by the employer, The FLSA provides health insurance for the aged and disabled(medicare), The tax paid to the federal government for unemployment taxes is used for paying state and federal administrative expenses of the unemployment program, The Self-Employment Contributions Act imposes a tax on the net earnings from self-employment derived by an individual from any trade or business, Each state imposes an income tax on employees that is 2 percent of gross wages, Only six states do not impose a state unemployment tax on employers in their state, One of the provisions of coverage of the Civil Rights Act is that the employer must have 15 or more workers, Title VII of the Civil rights Act protects all employees from arbitrary dismissal, By the use of executive orders, the federal government has banned discrimination in employment on government contracts, Employers not subject to Title VII coverage may come within the scope of the Civil Rights Act by reason of a contract or subcontract involving federal funds, Under the Civil Rights Act of 1964, the U.S. government is classified as an exempt employer, An exemption to the protection that the Age Discrimination in Employment Act provides for all workers over 40 involves executives who are 65 or older and who have held high policy making positions during the 2 year period prior to retirement, Under the Federal Personal Responsibility and Work Opportunity Reconciliation Act, every employer is required to report the name, address, and social security number of each new employee to the appropriate state agency, Form I-9 must be completed by each new hire, Employers are now required to photocopy new employees' form I- 9 documents, In order for the Walsh-Healey Public Contracts Act to protect laborers for contractors who furnish materials to any agency of the U.S., the contract amount must be at least $10,000, Under FMLA, the time off must be used in one uninterrupted period of time. 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. 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? ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. a. Walsh-Healey Public Contracts Act DATE DESCRIPTION POST REF. 1. When a firm has wages earned but not yet paid at the end of a financial reporting period, what Describe the main types of records used to collect payroll data. 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. Sale of land for cash.} Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. & \text{ } & \text{ }\\ Workers' Commpensation Insurance Expense-Operating expense ls the FUTA tax used to pay unemployment benefits? B) It contains a detailed listing of every transaction during a period. A credit of $16,250 is recorded on the June 25 pay date. 28. The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. True, A debit always decreases the balance of an account. Transfer of finished jobs to the finished goods inventory. Journal entries? Our online store for HR apps and more; for customers, partners and developers. C) $1,715. 4. 58. 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 In a sample of nine homes, what is the probability that: a. Total Earnings 9. (You may select more than one answer. 1. & \text{ } & \text{ }\\ 220 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. C) Payroll accounts do not appear on the trial balance because of their changeable nature. Sale of equipment for a note receivable.} C. National Origin The employee's earnings records is used in preparing the employees' W-2 forms. B. B) tax remittance information Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO. 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. The Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. Name two advantages and two drawbacks of Medicare tax $ 390. 2. Federal withholding tax payable 220 399,472. * 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? The volume of manual paycheck entries can be reduced by continual attention to the underlying causes of transaction errors, so there are fewer payroll errors to be rectified with a manual paycheck. These computations are shown in the Employee Payroll Register. With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. When the firm remits its health insurance premium for this pay date, what is the General Journal Define hours worked. Recorded as a liability for the employer in the payroll entry. B) It is an individual register maintained for each employee, listing of all the payroll information. A) Worker's Compensation What are the main kinds of information contained in a payroll register? & \text{ } & \text{ }\\ and year-to- date earnings. Payroll journal entries are used to record the compensation paid to employees. You face specific challenges that require solutions based on experience. 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Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). Want to read all 11 pages? True Which of the following is true of employee's earnings record? A) $2,253. What is the amount of the Social Security tax payable? Find payroll and retirement calculators, plus tax and compliance resources. 221 A) Debit $1, 63. On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. 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. D) Payroll register 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? : an American History (Eric Foner), Psychology (David G. Myers; C. 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SUTA tax payable 9,481. What are the General Journal entries that should appear on each pay date? 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. False. (You may select more than one answer. 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? 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. C) A debit balance will decrease the expenses of the firm's income statement. Protection under the provisions of the Age Discrimination in Employment Act begins at what age?? \begin{matrix} incorrect.) A. A) Credit $8, Read more about the author. Under the U.S. payroll tax a employee has to pay the tax on hi . Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. 14. A) Form W- Ring up sales and take payments in style with the sleek touchscreen Register device Make it mobile Every Register comes with a PAX A920 terminal to use as a mobile credit card reader Add on wireless POS hardware Complete your hardware suite with Bluetooth barcode scanners, receipt printers and cash drawers Hardware that won't hold you back The total of each distribution column shows the total amount of that department's wage expense. The employees gross wages for the past week are. Todays digital landscape means limitless possibilities, and also complex security risks and threats. Compute and record the employee's SUTA contributions. Social Security tax payable ??? Calculate regular and overtime pay. It lists payroll information about each employee, such as hours worked, gross pay, deductionsand net pay. 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. total Small, midsized or large, your business has unique needs, from technology to support and everything in between. B) Employee address D) the employee's name, social security number, and address expenses are, the higher the profitability will be. B) The income statement \text{6. 3. During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. 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. 20XX: Gross pay $ 27,894. FUTA Taxes Payable-liability Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. 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. On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. A) Revenue 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%. Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month? What is the purpose of the Age Discrimination in Employment Act (ADEA)? D) It is a report designed to be read by parties external to the firm. Vacation Benefits Expense-Operating expense Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. \text{1. Which of the following represents the missing Social Security and Medicare taxes, assuming that. HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. C) It should disburse the accrued pay to the employees. Record the health insurance deduction. These liabilities accompany every payroll you run. B) General Journal What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? Collectionofanaccountreceivable. Medicare tax payable 3,197. Garnishment $ 450. the health Insurance is qualified under Section 125? E. 65, Which of the following is not a provision of the Fair Labor Standards Act? 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? Application of overhead to goods in process. Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. employees' payroll, one for the employer's share of the taxes. Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. A) The income statement What must the employer do with unclaimed checks. d. Occupational Safety and Health Act Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. A cell phone company offers two different plans. $y = -x - 4$. Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. ADP is a better way to work for you and your employees, so everyone can reach their full potential. 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. On which income statement will the state unemployment tax expense appear under accrual accounting? D) One side of the equation must equal zero. < Prey 18 of 40 Pay period dates. What entry should appear in the General Ledger to reflect the Employee SIT Payable-liability A) It communicates departmental profitability. A payroll register can also . 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 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) Labor reports A) By order of importance A) Form W- All earnings are taxable. Switching payroll service providers made easy. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? Protest Unemployment Insurance benefit charges or rates. What is your sisters total cost under each of the two plans? 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. Purchaseoftreasurystock.14. B) $2,572. At ADP, security is integral to our products, our business processes and our infrastructure. \text{7. Federal withholding tax payable 220 $ ??? & \text{ } & \text{ }\\ 2. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? Jul 1 Wages and salaries payable 226 113,562. What is the role of enhancing qualities in the conceptual framework? For classifying the gross wages and salaries according to the nature of the wage and salary expense. D) Company website 33. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. \text{3. A) $399,472. must it do to recognize the liabilities and expenses? 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. B) Payroll register Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. It is a monthly schedule depositor. d. At least seven homes have large-screen TVs? statement? 18 401(k) contributions payable 223 454. True False. D. All employees earning the minimum wage. b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? Net pay $ 19,747. 21 Although they record much of the same information, payroll journals and payroll registers are not identical. the total incomes of the firm and decrease the net income of the firm. D. ERISA provides that all employees are eligible to set up their own individual retirement accounts. We have credited a liability account for each of the tax amounts. A) Debit $1, As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $14, May criminal background checks be used by all employers for any person? Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? Which of the following is not a provision of FLSA? This account would be credited for the amount paid. 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. To which items is information from the payroll register transferred? automatically graded as incorrect.) A) the firm's payroll checking account information Any boxes Left with a question mark will be automatically graded as incorrect.) Under FMLA, may employers exempt the highest paid 10 percent of the workforce? What is a use of a firm's labor trend reports? Wages and salaries payable 226 ??? 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. business. Department of branch 4. 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. Medicare tax payable 222 4,205. account: Social Security tax payable ACCOUNT NO. Use the following information for Questions 19 - 20: & \text{ } & \text{ }\\ Social Security tax $ 1,670. Employers use the employee's earnings record in preparing ___. Form W-2 What does the Civil Rights Act of 1954 cover? Jun 23 Wages and. B) It is always expressed as assets = liabilities - owners' equity. ERISA ensures that workers covered by private pension plans receive benefits from those plans in accordance with their credited years of service with their employers.

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