D) Credit $30. A payroll register lists all basic information related to employee take-home pay. 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. D. Requires equal pay for equal work, regardless of gender. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. must it do to recognize the liabilities and expenses? Use the following information for Questions 19 - 20: All of these journal entries are noted below. Which act covers employee pension and welfare plan.? It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. A(n) ________ is a collection of cash and other items that are used in the operation of the Paymentofanaccountpayable.15. How will payroll deductions from employees wages for their portion of 401K plans be recorded? Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? When a firm has wages earned but not yet paid at the end of a financial reporting period, what 2. pay date. Recorded as a liability for the employer in the payroll entry. 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. What are the enhancing qualities of the qualitative characteristics? This will decrease Sometimes you will see all the taxes lumped together into one account called Payroll Taxes Payable. b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. Payment of employee salaries.} 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? 3. \text{15. CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. B. ERISA What portions of an employee's wages are exempt from a federal tax levy. Which basic records are generated in most payroll accounting systems? False, Two complete payroll-related General Journal entries are recorded each pay period: one for the 1. You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. At ADP, security is integral to our products, our business processes and our infrastructure. B. ERISA requires each employer to establish a pension plan. BALANCE Click here to learn more. C) $12,576. 16. C) Labor reports Continuing Payroll Problem-B OLNEY COMPANY, INC. Explain the use of the "Cumulative" column in the employee's earnings record. When the firm remits its health insurance premium for this pay date, what is the General Journal Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. 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. C. FLSA 41. At ADP, we believe sports and business both require the right approach. C) It is non-traceable labor that a company must absorb as overhead. answer And double click the box with the question mark to empty the box for a wrong answer. Health Insurance payable 224 8,375. & \text{ } & \text{ }\\ Deductions. a wrong answer. 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) Discover the latest Today at Work insights from the ADP Research Institute. 11. 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? Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO. 15. Learn how we can make a difference by joining forces to improve the success of the clients we share. A payroll register can also . Workers' compensation insurance premiums are paid for by the employees, Workers' compensation insurance premiums vary according to the different degrees of danger in the employees' jobs. Does every state have both federal and state unemployment laws? 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. Its easier to keep accurate payroll records and run reports quickly with payroll software. 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. Identify distinctive compensation plans. All earnings are taxable. 15. \text{9. ADP helps organizations of all types and sizes unlock their potential. incomes are, the higher the profitability will be. 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. Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll,one for the employer's share of the taxes. Which of the following reports links the accounting and the human resources departments? A) Net pay 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;. Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? Use the following information for Questions 15 - 17: 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. C) Debit Revenue, $250,000; Credit Cash, $250, Gross wages of $500.00 less withholdings of $38.25 for FICA and $87.25 for federal and state income taxes. Sale of land for cash.} C) Employee pay disbursement and voluntary deduction remittance 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. For classifying the gross wages and salaries according to the nature of the wage and salary expense. grass clippings at the curb for pickup because local landfills cannot handle the volume. A. each option. Any boxes left with a question mark will be D) The transaction appears on page four of the General Journal. 3. A) It allows managers to determine the effect of employee labor on departmental profits. How are the funds used which are provided by FUTA and SUTA? B) Debit $30, D) the employee's name, social security number, and address 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. What options might Hazel consider if the C. 40 A) Debit $1, You can enter a formula into a cell manually (typing it in) or by pointing to the cells. 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 17. 4. 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. C) It should disburse the accrued pay to the employees. Payment of a long-term note payable.} In this last task, the following steps will be completed. Administrating the state unemployment taxes. ADP and the ADP logo are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. It is a monthly schedule depositor. Using the accounting equation, determine the following amounts: a. Owners equity as of December 31, 2013. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial Application of overhead to goods in process. C) $1,715. Entitled to retirement program even if you're no longer working there. C) proof of payroll deposits pay For fill-in-the-blank questions, press or click on the blank space provided. 401(k) contributions payable 223 454. 401(k) contributions payable 223 ??? A. Which of the following steps should be taken by the Human Resources Department when hiring new employees? This entry may be avoided if the amount is immaterial. pay date. Correct answer: Option (1) Medicare tax is the correct answer. account: Social Security tax payable ACCOUNT NO. Rushing River Boats has the following data in its Social Security tax payable General Ledger Using the payroll register, compute the employee gross pay and net pay using 35 hours as the standard workweek for all employees except Mary Shangraw, who works 20 hours per week and receives overtime for any time worked past that point. Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. February 7 Journalize the employer . 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. D) It is non-employee labor that the company must pay. Saleofequipmentforcash. Social Security tax payable 221 17,980. Garnishment $ 450. B. ERISA requires each employer to establish a pension plan. Raw materials purchases for cash. Fair Labor Standards Act (Federal Wage & Hour Law). & \text{ } & \text{ }\\ the box with the question mark to produce a check mark for a correct answer and double click This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? 60. Payroll registers include all of the information in a pay period for all employees. General Journal entry to record this transaction? FUTA funds are used to pay the state and federal administrative expenses and SUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. 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. Hence, no need to accrue any salaries. 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? D) The same as the chart of accounts depositor, what entry Should appear on November 15 for the remittance of the month's Social For superior accuracy, many smalland largebusinesses rely on automated digital payroll solutions, such as those offered by ADP, which can integrate with accounting software and other programs. 6. B) It contains a detailed listing of every transaction during a period. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. the payroll? A) Employee earnings record Medicare tax payable 222 ??? Collection of an account receivable.} View the full answer. C) SUTA True, In the General Ledger, the debit column reflects the balance of the account. C) Credit $4, Paymentofemployeesalaries.OCO2. 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. B) It allows managers to predict future labor costs. Wages and salaries payable 226 202,671. See Answer. on the first day of the next financial period? D) It should create a reversing entry in the General Journal. Federal withholding tax payable 220 $ 50,725. The payroll register of any firm needs to have specific details on every employee. 1. Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? A) Social Security tax, $204; Medicare tax, $792. True False. 58. C) Because payroll represents a liability and an expense of the business. But if you follow these seven steps, you can learn how to account for payroll with ease. Issuanceofbonds. one answer. Small, midsized or large, your business has unique needs, from technology to support and everything in between. D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 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. C) Earnings subject to FICA tax Any boxes left with a question mark will be automatically graded as During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. That's why we've partnered with some of the top athletes in the world. Accounting questions and answers. C) Labor reports Which of the following is not a provision of FLSA? Compute and record the employee's SUTA contributions. To which items is information from the payroll register transferred? This will increase the An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). account: ACCOUNT Federal withholding tax payable ACCOUNT NO. B) A debit balance will increase the expenses of the firm's income statement. D) It highlights issues and results of seasonal labor. Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. B. D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General During the past week, the employee worked 50 hours. Which report contains employer share tax expenses for a period? What is the b. B) Posting What is The balance in the account? 11. D. 50 What special accounts must usually be opened in the general ledger to record payroll tax entries? Discover what others say about us. Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? The company does not provide health insurance, paid vacations, or any other benefits. 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. HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. Read the latest news, stories, insights and tips to help you ignite the power of your people. Does FLSA require the employer to display a poster with the FLSA rules? 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. True Which of the following is true of employee's earnings record? Time worked - regular & overtime 7. 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. What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? $y = -x - 4$. 1. D) Debit $8. What is your sisters total cost under each of the two plans? What is the current minimum wage under FLSA? 62. Cross), Give Me Liberty! department. Loantoanotherfirm.12. Jun 23 Wages and. False - also needs to be a reasonable amount. Single click the box with the question 19. 8. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? Which of the following represents the missing Social Security and Medicare taxes, assuming that. expenses 7. Who are the winners and who are the losers when the minimum wage is increased? B) It is employee labor that does not pertain to labor on customer jobs. Gross pay and net pay. Health Insurance $ 950. At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. 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. Issuance of common stock.} DEBIT CREDIT DEBIT CREDIT It records payroll record on each employee separately. 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. 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. A cell phone company offers two different plans. A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. Sale of equipment for a note receivable.} B) $2,572. What is the amount of the 401(k) contributions for the pay date? 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). ls the payroll register used in preparing the Form W-2? Were reimagining what it means to work, and doing so in profound ways. *Graph the equation using the slope and $y$-intercept, as in the Previous Examples. Single click the box with the question mark to produce a check mark for a correct & \text{ } & \text{ }\\ Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) These details include the employee id number, the department they belong, their job profile, etc. True, Employee earnings records form the link between accounting and the human resources Workers' Commpensation Insurance Expense-Operating expense D) It may contain whatever accounts the accountant wishes to include. Vacaction Benefits Payable- liability. 20. Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. \text{11. E. Highest-paid 10% of their workforce. A) Debit R. Sanders Capital, $250,000; Credit Cash, $250, 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. Copyright True, Besides containing the supporting data for periodic tax reports, the employee earnings record mark to produce a Check mark for a correct answer and double click the box with the question Zipperle Company has the following payroll information for the pay period ending September 18, D) As liabilities B. Rate of pay 8. Type the formula, then press Enter. under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. Title of report 2. 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? What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? 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. 2. 7. Your sister currently uses 1,700 minutes and sends 1,600 texts each month. date: Oct 27 Wages and salaries expense 522 $298,384. According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? Direct materials usage. Purchase of inventory.} E. 65, Which of the following is not a provision of the Fair Labor Standards Act? 33. the box With the question mark to empty the box for a wrong answer. & \text{ } & \text{ }\\ Besides payroll information, the payroll register contains ________. : an American History (Eric Foner), Psychology (David G. Myers; C. 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Under FMLA, may employers exempt the highest paid 10 percent of the workforce? How does the FIFO method different from the weighted-average method? Cash 101 202,671. As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $14, For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. posted an additional $4,390 on its October 31 pay date. Oct 27 Wages and salaries payable 226 202,671.