Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. Correct answer: Option (1) Medicare tax is the correct answer. Our online store for HR apps and more; for customers, partners and developers. Every state imposes a state unemployment tax on employers in their state. Sets minimum wage. Get exclusive business insights delivered straight to your inbox. Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. & \text{ } & \text{ }\\ Read the latest news, stories, insights and tips to help you ignite the power of your people. so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. 18. 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 Direct labor usage. lf an investigative consumer report is used in an employment decision, does the employer need to tell the individual? What are the General Journal entries that should appear on each pay date? D) Payroll register 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? 9. Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. chronologically. B. the payroll register, employees' earning record, and accounting system entries the purpose of the net pay and check number columns in the payroll register is to Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew My Library Discovery Institutions Silver Creek High School (Colorado) Southern New Hampshire University A) It is employee labor that may be billed to customers. Which financial statements are affected in the year 2022? Employee FIT Payable-liability A) Net pay What is The balance in the account? Compute and record the Kipley Company's SUTA and FUTA contributions. ls the payroll register used in preparing the Form W-2? incorrect.) 6. Zipperle Company has the following payroll information for the pay period ending September 18, Discover a wealth of knowledge to help you tackle payroll, HR and benefits, and compliance. 4. Didier and Sons had the following employer's share payroll tax general journal entry for the May C. National Origin Use the information in the previous exercise to prepare journal entries for the following events in May. D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? Neither The Balance Sheet Nor The Income Statement. Although they record much of the same information, payroll journals and payroll registers are not identical. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. A payroll register is a valuable tool that records employee wage information for each pay period and pay date. Rate of pay 8. In other words, a payroll register is the document that records all of the details about employees' payroll during a period. \text{8. 62. A) $399,472. What is the role of enhancing qualities in the conceptual framework? the payroll? A) The total of the debits must equal the total of the credits. Basic payroll register templates can be found online or created in programs like Excel. A) A debit balance will increase the expenses of the firm's income statement. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. Jan 31 J4 420 1, Saleofequipmentforanotereceivable.10. Identify distinctive compensation plans. period. Saleofequipmentforcash.TypeofActivityOCashInfloworOutflowCO. 8. Collection of notes receivable.} The primary payroll journal entry is for the initial recordation of a payroll. 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. In Philadelphia, Pennsylvania, most workers are subject to three income taxes upon their earnings - federal state and city. Paymentofalong-termnotepayable. C. 40 We provide payroll, global HCM and outsourcing services in more than 140 countries. Federal withholding tax $ 3,570. Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? Under the U.S. payroll tax a employee has to pay the tax on hi . 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. Employers use the employee's earnings record in preparing ___. Payment of a long-term note payable.} It records payroll record on each employee separately. 30. 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. Cash 101 202,671. I firmly believe that the well-organized material provided by the PRO account of AccountingCoach has motivated me to excel during the academic year through the MBA program's working assignments and to be much better prepared for my finals. Learn more about the senior executives who are leading ADPs business. A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. Deductions from total earnings 10. Jan 19 Wages and salaries payable 226 8,134. Its best practice to audit payroll every pay period. 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. C) It must remain in balance at all times. (review sheet 4), Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1, The purpose of the net pay and check number columns in the payroll register is to verify Indirect labor usage. What information is commonly provided by a job-seeker on the application for employment form? Current period taxable earnings for FICA taxes are as. 27. 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. B) The account appears fourth in the list of liability accounts. Administrating the state unemployment taxes. Information available through a secured web sit, kiosk, or interactive voice response system. Payment of an account payable.} Social Security tax payable 221 10,517. Listed below are several transactions. B) A debit balance will increase the expenses of the firm's income statement. 9. You can enter a formula into a cell manually (typing it in) or by pointing to the cells. 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? I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." & \text{ } & \text{ }\\ mark to empty the box For a wrong answer. Copyright 2023 AccountingCoach, LLC. When you later pay the withheld taxes and company portion of payroll taxes to the IRS, you then use the following entry to reduce the balance in the cash account, and eliminate the balances in the liability accounts: It is quite common to have some amount of unpaid wages at the end of an accounting period, so you should accrue this expense (if it is material). \text{13. Records and the General Journal. 10. How can the information shown in the employees' earnings record be used? If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). Accounting questions and answers. It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. DEBIT CREDIT DEBIT CREDIT B) It is an individual register maintained for each employee, listing of all the payroll information. 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. 2. What are the main kinds of information contained in a payroll register? 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. That's why we've partnered with some of the top athletes in the world. NAME MARITAL STAT. - Michalis M. FICA (FICA is the acronym for Federal Insurance Contribution Act. These details include the employee id number, the department they belong, their job profile, etc. Payroll registers generally are more detailed than payroll journals and include specific information about each employee. Calculate regular and overtime pay. A payroll register lists all basic information related to employee take-home pay. Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? Assume that the company uses the accrual method of accounting. C) A debit balance will decrease the expenses of the firm's income statement. Social Security tax payable 221 17,980. What is the effect of each of the following posting upon the assets, liabilities, and owner's equity of a company. 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. 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? B. ERISA expense 522 $ 182,930. D) It highlights issues and results of seasonal labor. B) Equity 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%. B) The income statement ERISA provides for full vesting of the employer's contributions in three years or gradually over six. FICA Taxes Payable-OASDI-liability B) It should make a note to create the reversing entry at the end of the next financial period. Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. the health Insurance is qualified under Section 125? Department of branch 4. Which of the following is not a provision of FLSA? Paymentofalong-termnotepayable.13. 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. Discover what others say about us. Which items would be debited in the General Journal entry to record the employees' share of Direct materials usage. A) Net pay Learn more about Privacy at ADP, including understanding the steps that weve taken to protect personal data globally. Legalor equitable procedure by which a protion of the wages of any person must be withheld for payment of a debt. Health Insurance Premiums Collected-liability the total incomes of the firm and decrease the net income of the firm. Single click the box with the question mark to produce a \text{7. ls the FUTA tax used to pay unemployment benefits? Saleoflandforcash. Paymentofanaccountpayable. Once vested, can employees receive a pension at retirement even if they no longer work for that company? C) As expenses Name two advantages and two drawbacks of B) Debit $4, B) General Journal Who are the winners and who are the losers when the minimum wage is increased? Make payments. What must the employer do with unclaimed checks. False, Two complete payroll-related General Journal entries are recorded each pay period: one for the Fair Labor Standards Act (Federal Wage & Hour Law). A) Form W- 2. During the past week, the employee worked 50 hours. 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.