Click here to learn more. d. Occupational Safety and Health Act B) Because payroll represents an asset and an income of the business. It Step 2: Working Hours. The total of each distribution column shows the total amount of that department's wage expense. File, adjust, and print returns and reports. True, The information in the payroll register forms the basis for entries in the Employee Earnings What is meant by the garnishment of wages? one answer. Fair Labor Standards Act B. ERISA D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General Want more exclusive business insights like this delivered to your inbox?Subscribe now. C) Labor reports All of these journal entries are noted below. A) It communicates departmental profitability. Wages and salaries payable 226 202,671. Which of the following is an example of a trade association? The primary journal entry for payroll is the summary-level entry that is compiled from the payroll register, and which is recorded in either the payroll journal or the general ledger. 20XX: Gross pay $ 27,894. Marital status & number of withholding allowances 6. \begin{matrix} What does the term "billable time" mean as it pertains to payroll accounting? 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 What options might Hazel consider if the Collectionofnotesreceivable. Social Security tax payable 221 10,517. This account would be credited for the amount paid. Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? Question: Continuing Payroll Problem, 6B: Chapter 6 You have almost completed the Olney Company's Employee Payroll Register for the pay period ending January 8, 20--. Who are the winners and who are the losers when the minimum wage is increased? D. Requires equal pay for equal work, regardless of gender. In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. B) It facilitates accuracy in employee payroll tax computations. Employers use the employee's earnings record in preparing ___. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . mark to produce a Check mark for a correct answer and double click the box with the question B) It is an individual register maintained for each employee, listing of all the payroll information. pay date. B) By dollar amount a. Walsh-Healey Public Contracts Act What is the current minimum wage under FLSA? A) Employee earnings record Total Earnings 9. 221 Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. To prohibit discrimination on the basis of age in the employment practices of employer. A) Net pay Protest Unemployment Insurance benefit charges or rates. Gross wages of $500.00 + employer's portion of FICA $38.25 ($500.00 X employer rate of 7.65%) + unemployment tax of $24.00 + worker comp insurance of $5.00. Which of the following is not a provision of FLSA? 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? Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? True Which of the following is true of employee's earnings record? Loantoanotherfirm. Single click the box with the question mark to produce a C) proof of payroll deposits C) Social Security tax, $746; Medicare tax, $174. How does a debit balance in the wages and salaries expense account affect a firm's income Under FMLA, may employers exempt the highest paid 10 percent of the workforce? We have credited a liability account for each of the tax amounts. Payment of a long-term note payable.} He is the sole author of all the materials on AccountingCoach.com. Oct 27 Wages and salaries payable 226 202,671. What is the amount of the 401(k) contributions for the pay date? Payroll-Operating expense-liability D) The balance sheet True False. Transfer of finished jobs to the finished goods inventory. 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). D) Health insurance payable False, The General Journal contains records of a firm's financial transactions, which appear Legalor equitable procedure by which a protion of the wages of any person must be withheld for payment of a debt. Does the ADEA quit protecting employees after the age of 70? pay A company may occasionally print manual paychecks to employees, either because of pay adjustments or employment terminations. A) As assets Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? Paymentofanaccountpayable.15. Sale of equipment for a note receivable.} Multiple Choice. Requirements: Record the deduction for group insurance. Under the U.S. payroll tax a employee has to pay the tax on hi . A) The income statement It is a monthly schedule depositor. 28. Wages Payable-liability What does the Civil Rights Act of 1954 cover? Explain the use of the "Cumulative" column in the employee's earnings record. C) Debit $ Saleoflandforcash. Recorded as a liability for the employer in the payroll entry. 11. Feb 15 J Period covered by the payroll and the pay date. 3. B) As equity D) It must wait until the next financial period to record the payroll data. Our online store for HR apps and more; for customers, partners and developers. Health Insurance Premiums Collected-liability 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. lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? The payroll register is a separate payroll record that is kept on each employee. Every state imposes a state unemployment tax on employers in their state. Purchaseofinventory. 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. department. Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? B. Explain the major provisions of the Fair Labor Standards Act. Payroll registers include all of the information in a pay period for all employees. D. ERISA provides that all employees are eligible to set up their own individual retirement accounts. A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. expense 522 $ 12,987. b. What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? How does a payroll accountant keep track of employee's year-to-date earnings for wage bases mark for a correct Answer and double click the box with the question mark to empty the box for Simplify and unify your HCM compliance processes. 4. Laborers for contractors who furnish materials, supplies, articles, and equipment to any agency of the United States, provided the minimum contract amount is $10,000. Rate of pay 8. Complete the steps outlined below: 1. The employers total expense for Marys employment during the week is. Which of the following are processes that occur in most payroll accounting systems? 1. Learn more about the senior executives who are leading ADPs business. Age & \text{ } & \text{ }\\ Collectionofanaccountreceivable. Multiple Choice Q05 TransactionTypeofActivityCashInfloworOutflow1. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? B) The labor report, C) The statement of owners' equity 19. The town is considering an ordinance that would prohibit putting Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger. Loan to another firm.} D) Because payroll represents a liability and an expense of the business. The Federal Insurance Contributions Act covers restrictions on the employment of child labor. Whether you operate in multiple countries or just one, we can provide local expertise to support your global workforce strategy. The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries. 401(k) contributions $ 1,115. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. D) Debit $8. When the firm remits its health insurance premium for this pay date, what is the General Journal B) Equity SUTA Taxes Payable-liability Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. Read the latest news, stories, insights and tips to help you ignite the power of your people. Which of the following is not a provision of ERISA? Medicare tax $ 390. D) Federal withholding tax payable That's why we've partnered with some of the top athletes in the world. automatically graded as incorrect.) Click the card to flip Definition 1 / 66 True Click the card to flip Flashcards Learn Test Match Created by lauraberth67 Terms in this set (66) Does every state have state unemployment laws? Q08. \text{3. Were reimagining what it means to work, and doing so in profound ways. d. At least seven homes have large-screen TVs? 7. Based on the following data, prepare the appropriate journal entry when paying employees: Total wages earned were $8000 Direct labor usage. Use the following information for Questions 15 - 17: Report changes to your business. B) FUTA True, A debit always decreases the balance of an account. D) The same as the chart of accounts C) It allows payroll employees to divert funds into faux accounts. So that the total amount of accumulated wages can be recorded for each pay period thus when the accumulated wages of an employee reaches the cutoff level has been reached. 15. Which financial statements are affected in the year 2022? Employee benefits, flexible administration, business insurance, and retirement plans. Color ls the payroll register used for journalizing the payroll entries? What is the primary purpose of a labor report? False, Two complete payroll-related General Journal entries are recorded each pay period: one for the Want more exclusive business insights like this delivered to your inbox? Cash 101 202,671. A) It is employee labor that may be billed to customers. What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA? How do the Stanford-Binet and Wechsler tests differ? Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. Payroll journal entries are used to record the compensation paid to employees. B) Debit $4, Payroll Register This is the first task to completing Olney Company's payroll register. How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do Saleofequipmentforcash.TypeofActivityOCashInfloworOutflowCO. Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. A payroll register does not include: Multiple Choice Pay period dates. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. below deck mediterranean 2022 cast. Name two advantages and two drawbacks of D) General journal numbers Is it neccessary for an employer who is subject to FICA and FUTA taxes to keep a separate expense account for the taxes under each act? A. Its easier to keep accurate payroll records and run reports quickly with payroll software. accurate disbursal of payroll. Purchaseoftreasurystock. B) $2,572. These computations are shown in the Employee Payroll Register. 56. False. View notices and letters. Net pay $ 19,747. 6. Less than five have large-screen TVs? Cross), Give Me Liberty! D) Form 941 Federal withholding tax payable 220 $ 2,207. Raw materials purchases for cash. How do accrued, but not paid, wages appear on the balance sheet? Todays digital landscape means limitless possibilities, and also complex security risks and threats. Single click 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? statement? Listed below are several transactions. 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 Sale of equipment for cash.} 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. The ________ is the master document that contains an employee's marital status, deductions, With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. Safe-guards your retirement plans *not required to have a pension plan. 2. A credit of $16,250 is recorded on the June 25 This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. Issuanceofbonds. 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 C) Employee pay disbursement and voluntary deduction remittance The other hourly employees receive overtime pay when they work more than 35 hours in one week. Most office supply stores also carry books that are formatted specifically to record payroll information. Saleofequipmentforcash. expense 522 $ 182,930. Learn more about Privacy at ADP, including understanding the steps that weve taken to protect personal data globally. Why does company profitability decrease in direct proportion to the payroll expenses? Does FLSA require the employer to display a poster with the FLSA rules? 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. Withholding" and "Earnings subject to FICA"? Read more about the author. Apr 16 J23 16,495 32. D) It is a report that becomes published with other financial reports. posted an additional $4,390 on its October 31 pay date. Payroll typically creates an accrued liability for all of the following reasons except Because it is unnecessary to report amounts owed to employees for salaries or wages earned. D) Personnel file D) information about the firm's liabilities 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. \text{9. Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. Exempt salaried employees are often paid for their work right up to payday. For classifying the gross wages and salaries according to the nature of the wage and salary expense. 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. & \text{ } & \text{ }\\ Paymentofalong-termnotepayable.13. What is your sisters total cost under each of the two plans? A cell phone company offers two different plans. must it do to recognize the liabilities and expenses? 14. Federal income tax payable 11,955. Which items would be debited in the General Journal entry to record the employees' share of B. ERISA requires each employer to establish a pension plan. 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. For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. C) Debit Health Insurance Payable $13,618; Credit Cash $13,618. Collection of an account receivable.} A magnifying glass. 9. It indicates, "Click to perform a search". See Answer. 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 Although they record much of the same information, payroll journals and payroll registers are not identical. Type an equals sign (=) to signal the fact that the cell contains a formula. 29. Federal withholding tax $ 3,570. 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. B) It must create an adjusting entry to recognize the payroll accrual. The payroll register needs to record the hours each employee has served in the firm in a day. A) Credit $8, ls Form l-9 completed only by employees born in outside of the USA? Answer : Option E, Prior Years Earnings Explanat . A) Worker's Compensation DATE DESCRIPTION POST REF. Describe the main types of records used to collect payroll data. What are the main kinds of information contained in a payroll register? 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. The key types of payroll journal entries are noted below. Which basic records are generated in most payroll accounting systems? A) Both documents contain year-to-date totals of taxes. 53. B. ERISA requires each employer to establish a pension plan. Information available through a secured web sit, kiosk, or interactive voice response system. each option. 3. Medicare tax payable 222 4,205. From best practices to advice and HR consulting. D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? Social Security tax payable ??? This check may be paid through the corporate accounts payable bank account, rather than its payroll account, so you may need to make this entry through the accounts payable system. $y = -x - 4$. The employees gross wages for the past week are. A) Medicare tax 401(k) contributions payable 223 ??? \end{matrix} (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 Employers use the employee's earnings record in preparing ___. 2. B. C) Form W- What is The balance in the account? Neither The Balance Sheet Nor The Income Statement. B) It is always expressed as assets = liabilities - owners' equity. Attend webinars or find out where and when we can connect at in-person events. Medicare tax payable 3,197. The first answer is provided as an example. A) Net pay Department of branch 4. What are the General Journal entries that should appear on each pay date? 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? Health Insurance payable 224 13,618. B) $15,298. True, Employee earnings records form the link between accounting and the human resources Jan 31 J4 420 1, Entitled to retirement program even if you're no longer working there. 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. On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. Plan A costs $80 per month for unlimited talk and text. Compute and record the Kipley Company's SUTA and FUTA contributions. At ADP, we are committed to unlocking potential not only in our clients and their businesses, but in our people, our communities and society as a whole. Cash 101 117,334. & \text{ } & \text{ }\\ 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. This information is also reflected in summary level entries in the businesss general ledger. It's useful for record-keeping in a business and has legal implications if not kept correctly.. A summary of all payroll activity is an excellent way to look at the payroll register report. May 14 Wages and salaries payable 226 117,334. Under FLMA, do any states have paid a family leave plan? FUTA tax payable 1,322. Purchase of treasury stock.} 401(k) contributions payable 223 454. \text{13. 63. The higher payroll Indirect materials usage. Direct materials usage. ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. Compute and record the employee's SUTA contributions. FUTA Taxes Payable-liability A payroll register can also . A) It allows managers to determine the effect of employee labor on departmental profits. All rights reserved.AccountingCoach is a registered trademark. Your portfolio has three asset classes. B) Debit $30, 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. Which of the following is true of employee's earnings record? As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $14, C) SUTA Does FLSA say how often employees need to be paid? A) Form W- This will increase A(n) ________ is a collection of cash and other items that are used in the operation of the question mark Will be automatically graded as incorrect.) Journal entries? Which of the following best describes the purpose of the payroll register? 57. Purchase of rent in advance.} 5 pay date: May 5 Payroll Taxes Expense $ 27,671. B) A debit balance will increase the expenses of the firm's income statement. 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. B) Posting The Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. A payroll register is a valuable tool that records employee wage information for each pay period and pay date.
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