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Listed below are several transactions. \end{matrix} D) It may contain whatever accounts the accountant wishes to include. What entry should appear in the General Ledger to reflect the How are the funds used which are provided by FUTA and SUTA? What is the 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? True, Besides containing the supporting data for periodic tax reports, the employee earnings record B. At a minimum, payroll registers help businesses: But thats hardly the extent of how beneficial a payroll register can be. In what order are accounts presented on the trial balance? It records payroll record on each employee separately. 13. C) Cross-referencing D) The same as the chart of accounts A) The income statement 12. Direct labor usage. Learn how we can make a difference by joining forces to improve the success of the clients we share. Loan to another firm.} C) Payroll accounts do not appear on the trial balance because of their changeable nature. 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. Use the information in the previous exercise to prepare journal entries for the following events in May. Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. 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 What is the term for transferring data from the General Journal to the General Ledger? A) the beginning and ending dates of the pay period Read more about the author. D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? mark to empty the box For a wrong answer. & \text{ } & \text{ }\\ Collectionofanaccountreceivable.5. During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. E. Sex, Which of the following statements is NOT a provisions of ERISA? 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. 221 DATE DESCRIPTION POST REF. What is a use of a firm's labor trend reports? Saleoflandforcash. There will also be credits to a number of . An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. serves as a backup in the event of computer failure. Which of the following is not a provision of ERISA? 55. Federal income tax payable 11,955. Simplify and unify your HCM compliance processes. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. A. 6. Net pay $ 19,747. \begin{matrix} This will increase A) Because payroll represents an asset and an income of the business. Quickly connect ADP solutions to popular software, ERPs and other HR systems. What are the General Journal entries that should appear on each pay date? Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. A) Debit $1, the total incomes of the firm and decrease the net income of the firm. 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? 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? What are the General Journal entries that should appear on each pay date? C) It should disburse the accrued pay to the employees. B) Total overtime earnings Payroll Accounting (Practice Quiz) Print PDF For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? 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. Administrating the state unemployment taxes. Any boxes left with a Attend webinars or find out where and when we can connect at in-person events. 56. This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. 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. Union Dues Payable-liability Employers use the employee's earnings record in preparing ___. Define hours worked. Compute and record the Kipley Company's SUTA and FUTA contributions. 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. Discover the latest Today at Work insights from the ADP Research Institute. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? Does workers' compensation laws only relate to work-related incidents? Payroll journal entries are used to record the compensation paid to employees. A) Employee pay accrual and employee pay disbursement The ___ is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period. Records and the General Journal. Type an equals sign (=) to signal the fact that the cell contains a formula. Social Security tax payable 221 17,980. Employee FIT Payable-liability HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. To prohibit discrimination on the basis of age in the employment practices of employer. On which income statement will the state unemployment tax expense appear under accrual accounting? B) Employee earnings record Purchaseofrentinadvance.4. D) Because payroll represents a liability and an expense of the business. 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. Use the following information for Questions 15 - 17: ls Form l-9 completed only by employees born in outside of the USA? Issuanceofbonds.11. 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 Does every state have both federal and state unemployment laws? Total Earnings 9. Federal withholding tax $ 3,570. 15. \text{6. These computations are shown in the Employee Payroll Register. 38. Its best practice to audit payroll every pay period. How can the information shown in the employees' earnings record be used? 64. 57. B) Debit $4, ERISA provides for full vesting of the employer's contribution to an employee's pension fund in 3 years or gradually over: these factors are bona fide occupational qualifications for the job. Accounting questions and answers. Employers can exempt the following employees from the Family and Medical Leave Act. Cross), Give Me Liberty! ADP helps organizations of all types and sizes unlock their potential. b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. B) Gross pay A) the firm's payroll checking account information D) information about the firm's liabilities B. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). Comprehensive payroll and HR software solutions. d. At least seven homes have large-screen TVs? 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. At ADP, security is integral to our products, our business processes and our infrastructure. 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? For what reason are "distribution" columns sometimes provided in the payroll register? lf an investigative consumer report is used in an employment decision, does the employer need to tell the individual? ls the FUTA tax used to pay unemployment benefits? The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. employees' payroll, one for the employer's share of the taxes. Recorded as a liability for the employer in the payroll entry. FUTA Taxes Payable-liability Besides payroll information, the payroll register contains ________. Name two advantages and two drawbacks of Collectionofnotesreceivable.8. Transfer of finished jobs to the finished goods inventory. Collection of notes receivable.} Plan B costs$0.20 per minute plus $0.10 per text message sent. Plan A costs $80 per month for unlimited talk and text. Health Insurance Premiums Collected-liability When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger. one answer. Explain the use of the "Cumulative" column in the employee's earnings record. C) It allows payroll employees to divert funds into faux accounts. 401(k) contributions $ 1,115. E. All of the above are provisions of ERISA. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. Todays digital landscape means limitless possibilities, and also complex security risks and threats. ls the payroll register used for journalizing the payroll entries? Sale and delivery of finished goods to customers for cash (record unadjusted cost of sales). B. ERISA requires each employer to establish a pension plan. 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. 1. D) $1,875. Which of the following is not a provision of FLSA? It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. Are employers required to keep a photocopy of the l-9 form? The payroll register of any firm needs to have specific details on every employee. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. The higher payroll The company does not provide health insurance, paid vacations, or any other benefits. A payroll register can also . 4. Payroll Register This is the first task to completing Olney Company's payroll register. 9. C) proof of payroll deposits Want more exclusive business insights like this delivered to your inbox?Subscribe now. 10. In this last task, the following steps will be completed. Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO. var d=new Date(); document.write(d.getFullYear()); ADP, Inc. Find the package that's right for your business. Verify the date and enter General as the reference. The W-2 provides all of the information required by the Affordable Care Act. Legalor equitable procedure by which a protion of the wages of any person must be withheld for payment of a debt. What are the main kinds of information contained in a payroll register? What special accounts must usually be opened in the general ledger to record payroll tax entries? Jan 31 J4 420 1, Any Boxes left with a question mark will be automatically graded as incorrect.) McHale Enterprises has the following incomplete General Journal entry for the most recent pay C. All employees under the age of 30. incorrect.) \ This will decrease D) Company website Learn more about the senior executives who are leading ADPs business. What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? A) A debit balance will increase the expenses of the firm's income statement. Who is covered by the Walsh-Healey Public Contract Act? B) $15,298. Complete the steps outlined below: 1. Paymentofalong-termnotepayable. 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. 28. 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? Get exclusive business insights delivered straight to your inbox. A credit of $16,250 is recorded on the June 25 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. Every state imposes a state unemployment tax on employers in their state. False, The General Journal contains records of a firm's financial transactions, which appear For example, there may be deductions for 401(k) pension plans, health insurance, life insurance, vision insurance, and for the repayment of advances. & \text{ } & \text{ }\\ Answer : Option E, Prior Years Earnings Explanat . account: Social Security tax payable ACCOUNT NO. 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%. department. 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. D. FMLA Which of the following best describes the purpose of the payroll register? Deductions. \text{5. D) The balance sheet 21 A) Both documents contain year-to-date totals of taxes. $y = -x - 4$. D) It is non-employee labor that the company must pay. D) Federal withholding tax payable D) Form 941 The employees gross wages for the past week are. In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? Department of branch 4. They must disclose to the job applicant that they are seeking an investigative report. What is the amount of the 401(k) contributions for the pay date? 10. For fill-in-the-blank questions, press or click on the blank space provided. A) Debit $1, Keeping vital payroll data up to date and easily accessible is essential for employers to address unexpected discrepancies without confusion. a wrong answer. Which of the following represents the missing Social Security and Medicare taxes, assuming that. What information is commonly provided by a job-seeker on the application for employment form? On which financial report will employer-paid portions of health insurance premiums be listed? answer And double click the box with the question mark to empty the box for a wrong answer. incomes are, the higher the profitability will be. Loantoanotherfirm. What is the amount of the Social Security tax payable? C) the name of the firm and the payroll accountant Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? \text{10. May an employer terminate an employee for lying on an application form? 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. Factory payroll costs in cash. Saleofequipmentforcash.TypeofActivityOCashInfloworOutflowCO. pay date. A(n) ________ is a collection of cash and other items that are used in the operation of the Click here to learn more. In other words, a payroll register is the document that records all of the details about employees' payroll during a period. depositor, what entry Should appear on November 15 for the remittance of the month's Social Record the health insurance deduction. We have credited a liability account for each of the tax amounts. Security taxes? During the past week, the employee worked 50 hours. Federal withholding tax payable 220 $ 50,725. Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. B) General Journal 5 pay date: May 5 Payroll Taxes Expense $ 27,671. Sale of equipment for a note receivable.} What is the purpose of the Age Discrimination in Employment Act (ADEA)? The portion of the Federal Insurance Contributions Act that deals with Social Security is called. Payment of an account payable.} What portions of an employee's wages are exempt from a federal tax levy. A) As assets A. mark for a correct Answer and double click the box with the question mark to empty the box for Protest Unemployment Insurance benefit charges or rates. In a sample of nine homes, what is the probability that: a. Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . The payroll register is a separate payroll record that is kept on each employee. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases The employee's earnings records is used in preparing the employees' W-2 forms. 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 expenses are, the higher the profitability will be. B) Debit Cash, $250,000; Credit Revenue, $250, Employers use the employee's earnings record in preparing ___. A) It should create a reminder about the accrual to ensure accuracy of computations on the next 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. C) SUTA Sometimes you will see all the taxes lumped together into one account called Payroll Taxes Payable. A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. View notices and letters. Which act covers employee pension and welfare plan.? Employees with less than a five year tenure of employment. Under FMLA, may employers exempt the highest paid 10 percent of the workforce? The lower payroll Fair Labor Standards Act 3. D) Health insurance payable account: Social Security tax payable ACCOUNT NO. Once vested, can employees receive a pension at retirement even if they no longer work for that company? The payroll register needs to record the hours each employee has served in the firm in a day. DEBIT CREDIT DEBIT CREDIT This will increase expense 522 $ 182,930. accurate disbursal of payroll. A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. TransactionTypeofActivityCashInfloworOutflow1. A company may occasionally print manual paychecks to employees, either because of pay adjustments or employment terminations. The first answer is provided as an example. Payroll registers generally are more detailed than payroll journals and include specific information about each employee. Jun 23 Wages and. The amounts needed for the payroll entries in the journal come from the employee's earning records. C) Debit Health Insurance Payable $13,618; Credit Cash $13,618. D) Personnel file C) Employee pay disbursement and voluntary deduction remittance Color Jan 19 Wages and salaries payable 226 8,134. Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. 53. Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. B) A debit balance will increase the expenses of the firm's income statement. A) Net pay How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. Application of overhead to goods in process. D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 Learn how we can make your work easier. Collectionofnotesreceivable. and year-to- date earnings. A. ADEA How to do payroll accounting: 7 steps At first glance, payroll accounting can be scary. Which of the following laws establishes the minimum wage? C) Form W- 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? A) It may be expressed as assets + liabilities = owners' equity. Are FICA taxes levied upon employers only? At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. 58. A payroll register lists all basic information related to employee take-home pay. CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. 14. A) Medicare tax Continuing Payroll Problem-B OLNEY COMPANY, INC. Jeremy is single with two withholding allowances. 7. This account is credited for the total amount of FIT with held each payday and is subsequently debited for the amounts paid to a depositary or to the IRS. Purchase of treasury stock.} Federal withholding tax payable 220 $ ??? A) Social Security tax, $204; Medicare tax, $792. 7. & \text{ } & \text{ }\\ Explain the major provisions of the Fair Labor Standards Act. 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. You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. The lower the payroll True, The information in the payroll register forms the basis for entries in the Employee Earnings Saleoflandforcash.3. Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). Protection under the provisions of the Age Discrimination in Employment Act begins at what age? $3,825 of employee withholding ($50,000 X 0.0765), Exempt Salaried Employees Paid Semi-monthly. the health Insurance is qualified under Section 125? \text{11. Under the Civil Rights Act of 1964 and the Age Discrimination in Employment Act, which of the following questions may not be asked by an employer during pre-hire inquiries? 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 20XX: Gross pay $ 27,894. Read the latest news, stories, insights and tips to help you ignite the power of your people. Current period taxable earnings for FICA taxes are as. A) Worker's Compensation Q09. B) Payroll register 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? Fair Labor Standards Act (Federal Wage & Hour Law). Calculate regular and overtime pay. Of the items in the following list, which one (s) should appear in a payroll register? 1. D) Payroll register 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. box for a wrong Answer. 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? For fill-in-the-blank questions, press or click on the blank space provided. B) By dollar amount Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? C) It is non-traceable labor that a company must absorb as overhead. A) It is employee labor that may be billed to customers. ADP hires in over 26 countries around the world for a variety of amazing careers. Purchase of rent in advance.} Rushing River Boats has the following data in its Social Security tax payable General Ledger How does the payroll register connect with the employees' earnings records? Another important step in maintaining a payroll register is to perform audits. Paymentofanaccountpayable. What are some examples of secondary sex characteristics? 11. Purchaseofrentinadvance. Single click the box with the question Entitled to retirement program even if you're no longer working there. A) Net pay Paymentofincometaxes.9. Gross pay and net pay. Issuance of common stock.} C) Asset, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Civilization and its Discontents (Sigmund Freud), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. Paymentofemployeesalaries.OCO2. Wages Payable-liability What is your sisters total cost under each of the two plans? Feb 15 J Forbids discrimination in hiring. Wages and salaries payable 226 ??? Federal Insurance Contribution Act (FICA), Form 941, Employer's Quarterly Federal Tax Return, Form W-3, Transmittal of Wage and Tax Statements, Applicable pay rates (regular or overtime), Review outgoing costs, either per employee or for the entire organization, Track employee deductions and tax withholding amounts, Reconcile payroll expenses to the general ledger, Record and track employee leave time, such as sick, vacation and paid time off (PTO), Validate direct deposit transactions and employer contributions to deferred compensation plans, such as a, Federal income taxes withheld from employee wages, State and local income taxes withheld from employee wages (if applicable), Federal unemployment taxes payable by the employer, State unemployment taxes payable by the employer, State unemployment taxes withheld from employee wages (if applicable), Benefits and other voluntary deductions from employee wages, Employer contributions to benefits and retirement savings plans.