B) False, 4. Take-home pay minus weekly standard deduction and exemptions = federal tax levy garnishment. c. must pay federal tax levies before any other deduction. accrual accounting The payroll register, Employees' Earning Records and Accounting System Entries. Wages and cash expenses The chart below shows the hourly pay and hours worked for Trilton Company's C246, Salary expense (3), True or False: Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation. The information needed in preparing a journal entry to record the wages earned, deductions from wages, and net amount paid each payday is obtained from the payroll register. It uses absorption costing based on standard costs and reports the following data for 2017: Theoreticalcapacity300unitsPracticalcapacity279.070unitsNormalcapacityutilization232.558unitsSellingprice$50perunitBeginninginventory40.000unitsProduction240.000unitsSalesvolume260.000unitsVariablebudgetedmanufacturingcost$10perunitTotalbudgetedfixedmanufacturingcosts$3.000.000Totalbudgetedoperating(non-manuf.) C. Payroll Taxes (A) December 31 of the current year. Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. \textbf{Past-Due Category}&\textbf{Accounts Receivable Total}&\textbf{Percentage Uncollectible}\\[5pt] would be used for reporting, only be in either debit or credit per account b. true or false:Qualified retirement plans are approved by an act of Congress. A. regular hours times regular rate. It produces a plastic toy in three separate departments: Molding, Assembling, and Finishing. The production-volume variance is written off to cost of goods sold. Would you expect the kinked demand curve to be more extreme (like a right angle) or less extreme (like a normal demand curve) if each firm in the cartel produces a near-identical product like OPEC and petroleum? $845.00 - $476.93 = $368.07. What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? (D) is the gross earnings for one quarter. Federal withholding tax, Which of the following are reversed as part of the payroll adjustment process? 401(k) contributions expense determining when the accumulated wages of an employee reach cutoff levels. Which of the following are processes that occur in most payroll accounting systems? (C) annually. 3. When the company pays for the state taxes withheld from the employee, the entry would be: Entering transactions in the general ledger. True false question. (B) payroll journal. True or False: In each pay period, the payroll information for each employee is recorded on his or her employee earnings record. Entering the transactions in the general ledger. FUTA Taxes Payable, The entry made at the end of the accounting period to record wages a. they are part of the payroll package required to be sent to the IRS on an annual basis. (D) state unemployment tax. 5. a. a debit to Vacation Benefits Payable = $1,178. \hline \text { Costs incurred during the year } & \$ 300,000 & \$ 1,575,000 \\ 8. A) $107.40 Employees' Earnings Records serve as an audit trail. employee review. -department breakdown of labor cost, billiable and nonbillable time Multiple select question. Which of the following is not an expense of the employer? Assuming you can earn 6% on your funds, which option would you prefer? Assets area and more. Payment of voluntary withholdings, True or false: The general ledger is the point where information gets entered into the accounting system database. a. c. are the earnings remaining after withholding income taxes and other amounts required by law. Are all outgoing remittances double-checked and approved? Assume that when you were in high school you saved $1,000\$ 1,000$1,000 to invest for your college education. Amounts withheld from employees' wages for health insurance are credited to a liability account. Federal income tax is withheld from employee earnings (A) only in those states electing to do so. Restoration Midterm. salaries and wages payable. None of the above, Which of the following accounts is an expense account in which an Letter and number Who is covered by the Walsh-Healey Public Contracts Act? all income & expense accounts are included in the report; only accounts w/ balances @ the end of the period are included. Multiple choice question. Have you computed their payroll taxes properly? 4. a. can take 50% of an employee's disposable income for child support payments. Which of these employee types is an allowable exception to the protection of the Age Discrimination in Employment? Show your work. true or false:The first task in preparing a payroll is to determine the number of days worked by each employee. c. Vacation Benefits Expense is debited, and Vacation Benefits Payable is credited. incurs as an expense each payday? create the need for fewer entries. b. variable, depending upon county that the levy originates. for each event. Entries to the general ledger will post amounts in the first pair of debit or credit columns: (1), True or False: A business deposits the total of gross wages in a separate payroll checking account. Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts. T F, When union dues that have been withheld from employees' wages are turned over to the union common stockholders employee earnings record. Have you prepared the financial statements and managerial reports? The payroll register is used by employers in completing Forms W-2. have amounts in both debit and credit per account Columns in the Employees' Earnings Records, Each piece of data is used in multiple ways, Connection of the Employees' Earnings Records to Periodic Tax Reports. (D) revenue. Vacation Benefits Payable is credited. Company management, True or false: Payroll reports help managers to determine payroll staffing needs. E. Wages Expense A) Wages Expense a.To prepare period reports and complete Form W-2 for each employee b.To complete Form W-2 for each employee c.To prepare period reports and complete Form W-2 for employer d.To prepare period reports e.To complete Form W-2 for employer, Which basic records . A credit increases which of the following types of accounts? (D) employee earnings account. Have you obtained approval for pay disbursements? Earnings records are supporting documents for: Asset = Amounts belonging to the company \end{array} (B) Medicare tax. earnings False, 27. The source document for paying state unemployment tax is: Study with Quizlet and memorize flashcards containing terms like True, False, False and more. a. the expense has already been recorded. The purpose of a labor report is to do what? 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? The Accumulated Earnings column of the employee earnings record (A) shows net pay for the year. A) True (C) shows net pay for one quarter. a. is used to record Workers' Compensation premiums paid by the company. (b) How long does it take for yyy to reach 505050? A) a federal tax levy create the need for more entries. Missed Exam ?'s. Federal Income Taxes Payable Why is it important for a firm to use both a payroll register In the garnishment process, federal tax levies take secondary priority to wages withheld for child support orders. account What is the connection between the employees' earnings records and payroll tax reporting? would be used for reporting, All of the following are examples of payroll liabilities except: The letters denote which journal the entry correlates. -when entries increase the account balance 3 general ledger postings. (B) January 1 of the following year. general journal entries. State unemployment tax C. Wages Payable -current entry amount per account type An employer will use the payroll register to keep track of an employee's accumulated wages. a. are what is left over after the employee pays rent and utilities. staffing pr income projections, connects directly to the employee's earnings records. In other terms, a payroll . Jacobs Company borrowed $10,000\$ 10,000$10,000 on a one-year, 8 percent note payable from the local bank on April 1. What are the arguments for giving separate accounting recognition to the conversion feature of debentures? Liabilities = Amounts or services owed by the company (A) a check. Multiple select question. determining market price for company products Employee taxes following except: (A) social security tax. 1. Let f(x)f(x)f(x) represent the total number of items a subject has memorized xxx minutes after being presented with a long list of items to learn. Work in process on September 1 had 100,000 units made up of the following: During September, 500,000 units were transferred in from the Molding Department at a cost of$640,000. The time of peak efficiency is the time when the learning rate is maximized. See Answer. \text{Beginning inventory} & \text{40.000} & \text{units}\\ a. is used to record Workers' Compensation premiums paid by the company. (A) monthly . What is the production-volume variance in 2017 when the denominator level is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization? The source document for paying employee income tax and social security and Medicare tax is: If Dr. (B) taxable earnings. Multiple select question. -employees are paid . True (C) FUTA earnings A qualified retirement plan that provides most individuals with a deferred federal income tax benefit. The amount on the employee earnings record used to determine if certain payroll taxes apply to an employee's earnings is (A) net pay. (D) January 31 of the following year. Owners' Equity Liabilities area In each pay period, the payroll information for each employee is recorded on his or her employee earnings record. and more. If employees must contribute to the state unemployment fund, this deduction should be shown in the payroll tax entry. Multiple choice question. In general, employers are required to pay state unemployment taxes: & 2021 & 2022 \\ -tax deposits. d. are required when the fiscal accounting period does not coincide with the end of the payroll period. unemployment tax payable-federal(multiply salary expense by .8%) A business form used to record details affecting payments made to an employee is a(n) (A) employee earnings record. Multiple choice question. d. the Payroll Manager is required by the IRS to submit the electronic records for verification. (B) marital status. - Designated to inform managers and department heads. Reconcile the difference in operating income based on theoretical capacity and practical capacity with the difference in fixed manufacturing overhead included in inventory. The employee earns more than the federal minimum wage. salaries and wages expense. Multiple choice question. CostsincurredduringtheyearEstimatedcoststocompleteasof12/31BillingsduringtheyearCashcollectionsduringtheyear2021$300,0001,200,000380,000250,0002022$1,575,00001,620,0001,750,000. A qualified retirement plan sponsored by an employer. -when payday is after the end of the month. and more. Employee Earnings Record. E) a percentage of the previous week's net payroll. 480.58 Cash SUTA Taxes Payable Business managers use accounting entries to inform their decisions -journal entries to post backward. Wages Payable Write the equation of the line passing through (5,-3) and parallel to the line with equation 2x+y=-3. Multiple choice question. Payments to sales taxing authorities \text{Production } & \text{240.000} & \text{units}\\ Multiple choice question. -Transactions in general ledger accounts are the source for general journal entries. The total pay due for a pay period before deductions is ____. Payroll records serve as backup for (D) overtime hours minus overtime rate. A) completing forms W-2. social security tax payable -A description is sometimes included. Wages expense, On which accounting reports would payroll-related assets appear? Taxes Payable is credited for the total taxes owed (FICA, FUTA, and SUTA). The maximum amount of gross earnings on which a tax is calculated, A retirement plan approved by the Internal Revenue Service. a. -Entering the transactions in the general journal. Period totals are also included Payroll costs represent an expense of the business. Multiple choice question. Wages Payable (5), True or False: In the journal entry for a payroll, the amount debited to Salary Expense is the total of the Net Pay column of the payroll register. Did you transmit the tax returns and remittances? -Supervisor change financial reports. (C) a liability account Until the amounts withheld from employee salaries are paid by the employer, they are recorded as: Payroll Taxes Wages payable redundancy. Compare taxes with other companies -include all descriptions in the general journal. It adds complexity to the personnel recordkeeping. The total of the Gross Earnings column of the payroll register for a given pay period will appear in which account for the payroll-related general journal entry? The following accounts receivable information pertains to Growth Markets LLC. The reports are identical and provide necessary redundancy. -Balances in the general ledger payroll accounts are used in payroll reports. redundancy. mandated under GAAP general accounting, Fritz Industries accrued payroll state withholding of $1,234 for the current payroll. (C) a memorandum. C) Payroll Taxes- FUTA Taxes Payable False, When remitting or depositing federal income taxes, the employer credits the cash account. a.Employees over the age of 40 who have held high policymaking positions during the two-year period prior to retirement (9). Automated entries, Identify the users of financial statements. Employer has the right to control both what work will be done and how it will be done. When does peak efficiency occur? A) True The purpose of a labor report is to do what? Using an automated entry, the payroll accountant would record transactions through Entering the transactions in the general ledger. The employee's earnings record provides information for each of the following except: a. Union Dues. A posting reference in the general ledger should The balances in the General Ledger accounts form the foundation of financial reports. A) FUTA tax Add. Cash (C) W-3 A reversing entry would -chronological. The employees' earnings records are the link between accounting and human resources and contain information from the payroll register. Payments for payroll regulation courses, Payment of statutory withholdings d. is used to record Workers' Compensation payments to injured workers. Ways the general ledger is different from the general journal include: The issuance of checks to employees would reduce:(which account). Calculate the amount of cash payments Jacobs was required to make in each of the two calendar years that were affected by the note payable. The typical overtime rate is $5.00 more than the regular hourly rate. Information gathered from the payroll register about each employee's payroll information is transferred to the ____ ____ ____. \text{Sales volume} & \text{260.000} & \text{units}\\ should be retained and destroyed at the same interval as other accounting records, A chronological record of a firms financial transactions, A record of a firm's financial transactions, grouped by account What was his overtime premium pay for this workweek? A. The average daily pay for Tortuga Travel's employees = $589. Wages Payroll, Which of the following items would require an adjusting entry at the end of each accounting period? A federal tax paid for old-age, survivors, and disability insurance. (A distribution column in the payroll register separates the various expenses into classifications such as Sales Expenses, Administrative Expenses, Factory Expenses, etc), 1. Employee regular earnings are calculated as ____. preparing the payroll register. a business form used to record details affecting payments made to an employee. A separate record of each employee's earnings, used to complete W-2. Entering the transactions in the general journal. d. companies are allowed to automatically enroll employees in the company's retirement plan. (2), True or False: The employer social security tax rate is different than the employee social security tax rate. FUTA Taxes Payable is an expense account in which are recorded the employer's federal unemployment taxes. - The date of the transaction is attached. E) FUTA Tax Expense- FUTA Taxes Payable, 19. General journal entries are the original ____ ____ for payroll events to be recorded in the accounting system. d. they are used to determine where cumulative wages are in relationship to wage bases (caps) for various taxes, such as OASDI, FUTA and SUTA. SURVEY . 7 and 8) 141 terms. -union negotiations. D. payroll. The financial investment and any accumulated profits or losses of the owner of a firm. -Employee receives an advance of their pay Employer taxes. (4), True or False: Form W-2 reports an employee's annual earnings and the withholdings for federal income, social security, and Medicare taxes. (C) a memorandum. The payment of payroll taxes to the government is referred to as a D) FUTA Taxes Payable- Cash The amount of employee pay left after federally mandated deductions are made, including federal and state income tax, social security . Assume an initial starting FtF_tFt of 300 units, a trend (Tt)\left(T_t\right)(Tt) of eight units, an alpha of 0.300.300.30, and a delta of 0.400.400.40. -bring the accountant to the related entry in the general journal. The reports are identical and provide necessary a. b. the standard deduction of the taxpayer. b.11 b. 2. Federal withholding tax, Social Security tax Did you prepare tax deposits and have them checked for accuracy? y=100(1e0.462t). Study with Quizlet and memorize flashcards containing terms like The _____ is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period. True Although the garnishment would be deducted from the employee's pay, the business is responsible (liable) for remitting the deduction to the creditor. -account number and date, Where will entries for payroll show in the trial balance? 100 terms. a.They must disclose to the job applicant that they are seeking an investigative report. employer records the FICA, FUTA, and SUTA taxes? Did you transmit remittances for the mandatory and voluntary deductions? Multiple choice question. determined by: Medicare Tax Payable, Paid cash for semimonthly payroll; total payroll, $3,066.00, less employee income tax, $182.00, social security tax, and medicare tax. Why is the operating income under normal capacity utilization lower than the other two scenarios? a.To prohibit discrimination on the basis of age in the employment practices of employer A. FUTA Tax Expense Payment of statutory withholding Why is it important for a firm to use both a payroll register -bring the accountant to the next entry in the general ledger. FICA Taxes Revenue (C) federal unemployment tax. Unclaimed employee wages are returned to the employer. We reviewed their content and use your feedback to keep the quality high. regular earnings plus overtime earnings. (4), True or False: The transaction to record employer payroll taxes expense is journalized at the end of the quarter. Apart from the recording of payroll and payment to employees, what other payroll related journal entries would be recorded? reversed in the next month. The record of all of a firm's financial transactions. Study with Quizlet and memorize flashcards containing terms like What changes should be included in the employee earnings record?, Earnings records are supporting documents for, Which portion of the accounting equation represents the amounts owed by the company? FICA Taxes Payable-OASDI. c. is used to record Workers' Compensation premiums paid by the employee. Copy and complete the chart. (A) monthly. accounting period, the amount of the adjustment would usually be (A) IRS Form W-4 collecting the time sheets for the days accrued. Salaries and Wages Payable, Which of the following taxes would NOT be included in the employer related payroll entry? Cash, When recording the deposit of FUTA taxes owed, the proper entry is: -payroll adjustments are entered, The first pair of debit and credit columns on the general ledger are for: only be in either debit or credit per account Credit Protection Act. A) True D. The withholding allowances of an employee affect (A) social security tax withheld. Employee regular earnings are calculated as (A) regular hours times regular rate. payroll accounting Medicare tax c. his/her applicable annual standard deduction based on marital status plus the number of exemptions claimed on Form 668-W. Wages Expense b. a credit to Cash = $1,178. Each employer must file a _________ federal tax return showing the federal income tax, social security tax, and Medicare tax due the government. Multiple choice question. \hline\\ Federal Income tax -current balance in the payroll account T-tables. Executive orders. Recording expenses only when paid is an example of: Tracking of governmental liabilities b. the account "Vacation Benefits Expense" is credited. All the payroll information needed to prepare payroll and tax reports is found on, C- Payroll register and employee earnings records provide, The payroll journal entry is based on the totals of the payroll register, The Total Earnings column total of a payroll register is journalized as a debit to, The total of the Federal Income Tax column of a payroll register is credited to (A) a revenue account, The total of the Net Pay column of the payroll register is credited to, When a semimonthly payroll is paid, the credit to Cash is equal to the, Payroll taxes that are paid by both the employer and the employee are, A tax paid to administer the unemployment program is the, A state tax used to pay benefits to unemployed workers is the, An employee's earnings subject to unemployment taxes are referred to as (A) gross D) Salaries Payable -Each entry will balance within the posting account. B) False, 8. SUTA taxes expense (B) an expense account Assets area c. affect the cash account. (C) special purposes account. a. -before journal entries are recorded You may assume that f(0)=0f(0)=0f(0)=0. When the initial payroll journal entries are created, the accountant would debit the: Employer related payroll entries would include: Shared employer-employee taxes (8), True or False: Some employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes on the next banking day. Which column exists in the employees' earnings records but not in the payroll register? \text{Option \#3:}&&\text{\$ 10,000,000 after three years}\\ T F, In the case of multiple wage attachments, a garnishment for a student loan has priority over any employees' earnings records What is the total uncollectible estimated bad debt for Growth Markets LLC? c. it is not necessary to even enter the data since the time-keeping device synchs with the payroll register, employee earnings record, paychecks, etc. Which of the following are true about the general ledger? c.Both of these choices are correct. a. department breakdown of labor cost, What can cause a journal entry to post on only one side (either debit or credit)? Tags: Question 11 . Employers are required to furnish each employee with an annual statement of earnings and withholdings before: Define the process of "posting." (A) a revenue A) True Study with Quizlet and memorize flashcards containing terms like a business form used to record payroll information os, the total earnings paid to an employee after payroll taxes and other deductions, a business form used to record details affecting payments made to an employee is and more. True dividends, equity, assets. D) an administrative wage garnishment B) False, 18. T F, 28. What is the purpose of the Age Discrimination in Employment Act (ADEA)? c.Laborers for contractors who furnish materials, supplies, articles, and equipment to any agency of the United States, provided the minimum contract amount is $2,000. d. How can the information shown in the employees' earnings record be used? C. pay period. four employees. Lowest 7 percent. Disposable earnings are the earnings remaining after withholding federal income taxes. The accounting process generates financial reports for both internal and external users. a. wages for child support. You have won a state lottery. -property tax audit. state income tax expense d.12. Examples of payroll related liabilities include: Garnishments False. Which act sets the minimum wage, and what is the current wage rate? Multiple choice question. 7. at the employer's discretion. The Federal Insurance Contributions Act. Multiple choice question. general journal entries. Employer taxes, Shared taxes \\\hline Social Security tax When using the equity method of accounting, when is revenue recorded on the books of the investor company? -after journal entries are recorded, The second set of debit and credit columns in a general ledger show: Company management, Unions D) a percentage of the previous week's gross payroll. False, Where will entries for payroll show in the income statement? Employees FIT Payable. B. Social Security Tax Payable -by account type. (D) accumulated earnings. The account balances form the basis for accounting reports. true or false:Payroll taxes withheld represent a liability for an employer until payment is made. completing the journal entry to record the payroll. a percentage of the previous week's net payroll. E) None of the above, 16. At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA? with the Form 940 reconciliation at the end of the year. Vacation pay earned by employees You purchased 200 shares of Smiley Incorporated, a small but profitable company. (D) an asset account. Multiple select question. using the same amount as the prior month's adjustment. Actual operating costs equal budgeted operating costs. Amounts listed on Employees' Earnings Records are used to facilitate computations and to verify accuracy of Form 941, 940, 944, and W-2/W-3. (B) total hours divided by regular rate. What is always true about the General Ledger? What changes should be included in the employee earnings record? Prepare absorption costing-based income statements for Magic Me Corporation using theoretical capacity, practical capacity, and normal capacity utilization as the denominator levels. would be reduced by every transaction Have you computed the employer's share of the payroll taxes? D) Union dues withheld Maple is a behaviorist, he would MOST likely believe that the cause of a child's disruptive behavior in school is the result of what? Amounts listed on Employees' Earnings Records are used to facilitate computations and to verify accuracy of Form 941, 940, 944, and W-2/W-3. True False, The Form 940 is the source document for all employee payroll journal entries. expensed in the next month. When recording the deposit of FUTA taxes owed, the proper entry is: (B) during the month following each calendar quarter. Payroll Taxes. Income Statement, A labor report provided to management would display: Which of the following acts prohibits discriminating in hiring, firing, promoting, compensating, or in any other condition of employment on the basis of race, color, religion, gender, or national origin? Explain your reasoning. D. Wages Expense Payroll transactions will have an effect on: A relationship, specifically financial, built on trust between a trustee and a beneficiary. A) True B) False, 3. debit to cash, credit to liability. A) FUTA Tax Expense- Cash Based on the data presented in the previous exercise, journalize Belarus Co.s entries for (c) the payment of the invoice within the discount period. -current transaction in the payroll account Employee's earning record. Union Dues. b. used to prepare internal management analyses. (D) IRS Form 941. -Employee 401(k) contributions, Employee receives an advance of their pay, The Current Tax Payment Act requires employers to remit taxes at the end of each month?
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