department. The holder of any unclaimed property must file a report after a specified sttutory period and then surrender the money to the stte as abandoned property. The Age Discrimination in Employment Act provides protection to virtually all workers over the age of: Form I-9, which is completed by each employee, deals with: Which of the following acts deals with the minimum wage paid to laborers for contractors on federal government construction contracts? expenses are, the higher the profitability will be. D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? 4. A. D) General journal numbers The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. in sin did my mother conceived me meaning Exempt salaried employees are often paid for their work right up to payday. D) Social Security tax, $188; Medicare tax, $805. Health Insurance payable 224 13,618. 56. Paymentofemployeesalaries.2. ls Form l-9 completed only by employees born in outside of the USA? 61. TransactionTypeofActivityCashInfloworOutflow1. The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. the total incomes of the firm and decrease the net income of the firm. C. National Origin What are the enhancing qualities of the qualitative characteristics? 12. Read the latest news, stories, insights and tips to help you ignite the power of your people. Purchaseofinventory.7. FICA Taxes payable-HI-liability C) It allows payroll employees to divert funds into faux accounts. 221 & \text{ } & \text{ }\\ A) Credit $8, DEBIT CREDIT DEBIT CREDIT Listed below are several transactions. 5 pay date: May 5 Payroll Taxes Expense $ 27,671. B. ERISA requires each employer to establish a pension plan. 2. Required: 1. D. Religion Verify the date and enter General as the reference. It indicates, "Click to perform a search". C) Employee signature Legalor equitable procedure by which a protion of the wages of any person must be withheld for payment of a debt. Wages Payable-liability 60. Under FMLA, may employers exempt the highest paid 10 percent of the workforce? The Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. C. 40 A cell phone company offers two different plans. It records payroll record on each employee separately. (You may select more than one answer. Book the entry on the date paychecks are distributed. business. Get exclusive business insights delivered straight to your inbox. c. McNamara-O'Hara Service Contract Act Which report contains employer share tax expenses for a period? B) It is always expressed as assets = liabilities - owners' equity. 2. For the entry on January 31, what does the J4 signify? Collection of an account receivable.} Describe the main types of records used to collect payroll data. For what reason are "distribution" columns sometimes provided in the payroll register? Saleofequipmentforanotereceivable. D. Requires equal pay for equal work, regardless of gender. 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. 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. Collectionofanaccountreceivable.5. ls the FUTA tax used to pay unemployment benefits? 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. We provide payroll, global HCM and outsourcing services in more than 140 countries. The employers total expense for Marys employment during the week is. B) It allows managers to predict future labor costs. Color Although they record much of the same information, payroll journals and payroll registers are not identical. It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. 18 BALANCE B) Debit Cash, $250,000; Credit Revenue, $250, \text{2. Records and the General Journal. expenses are, the lower the profitability will be. What are the main kinds of information contained in a payroll register? \text{Transaction} & \text{Type of Activity} & \text{Cash Inflow or Outflow}\\ \hline D) Because payroll represents a liability and an expense of the business. What must the employer do with unclaimed checks. Quickly connect ADP solutions to popular software, ERPs and other HR systems. There will also be credits to a number of accounts, each one detailing the liability for payroll taxes that have not been paid, as well as for the amount of cash already paid to employees for their net pay. What is true about the trial balance? These entries are then incorporated into an entity's financial statements through the general ledger. Health Insurance payable 224 8,375. What information is commonly provided by a job-seeker on the application for employment form? * (You may select more than D. All employees earning the minimum wage. Federal withholding tax payable 220 399,472. A) Social Security tax, $204; Medicare tax, $792. A) Debit $1, and year-to- date earnings. grass clippings at the curb for pickup because local landfills cannot handle the volume. 5. Rushing River Boats has the following data in its Social Security tax payable General Ledger A payroll register does not include: Multiple Choice Pay period dates. Neither The Balance Sheet Nor The Income Statement. 15. A company may occasionally print manual paychecks to employees, either because of pay adjustments or employment terminations. C) Credit $1, The employee's earnings records is used in preparing the employees' W-2 forms. Whether you operate in multiple countries or just one, we can provide local expertise to support your global workforce strategy. B) The labor report, C) The statement of owners' equity Union Dues payable 227 4,683. Every state imposes a state unemployment tax on employers in their state. Issuanceofbonds. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? Protection under the provisions of the Age Discrimination in Employment Act begins at what age? Collectionofanaccountreceivable. Single click the box with the question mark to produce a check mark for a correct Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. 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. Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? ADP hires in over 26 countries around the world for a variety of amazing careers. Any Boxes left with a question mark will be automatically graded as incorrect.) B) $15,298. 21 A) Net pay Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. E. Highest-paid 10% of their workforce. box for a wrong Answer. B) tax remittance information d. At least seven homes have large-screen TVs? e. None of the above. You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. 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. 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? Click here to learn more. The primary payroll journal entry is for the initial recordation of a payroll. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. Want more exclusive business insights like this delivered to your inbox?Subscribe now. account: Social Security tax payable ACCOUNT NO. How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. Indirect labor usage. Regardless of the format, payroll registers tend to follow the same basic structure. Report changes to your business. False - also needs to be a reasonable amount. Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. Purchaseofrentinadvance.4. Todays digital landscape means limitless possibilities, and also complex security risks and threats. Keeping vital payroll data up to date and easily accessible is essential for employers to address unexpected discrepancies without confusion. But if you follow these seven steps, you can learn how to account for payroll with ease. Journal entries? Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. D) Company website This entry may be avoided if the amount is immaterial. \text{4. so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. Single click 59. Payroll Test #1 Flashcards | Quizlet Subjects Expert solutions Log in Sign up Payroll Test #1 Term 1 / 66 Does every state have state unemployment laws? 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. C) Asset, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Civilization and its Discontents (Sigmund Freud), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. B) Credit $1, Multiple Choice Q05 D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. The employees gross wages for the past week are. Enchanted Creations has the following data in its Federal withholding tax payable General Ledger pay date. A) A debit balance will increase the expenses of the firm's income statement. Federal withholding tax payable 220 $ 2,207. Are employers required to keep a photocopy of the l-9 form? If a firm accrues the payroll due but not paid at the end of a financial period, what should it do Employee benefits, flexible administration, business insurance, and retirement plans. Jan 31 J4 420 1, each option. A) Employee earnings record Loantoanotherfirm. \text{9. 6. Net pay $ 19,747. 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). C) Both documents contain information from multiple pay periods. 66. B) Debit Cash $13,618; Credit Health Insurance Payable $13,618. 20XX: Gross pay $ 27,894. How are the funds used which are provided by FUTA and SUTA? This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Report new employees or independent . Payroll Register This is the first task to completing Olney Company's payroll register. 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. Feb 15 J lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? Read more about the author. FUTA Taxes Payable-liability This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. Medicare tax payable 222 4,205. Rushing River Boats has the following data in its Social Security tax payable General Ledger var d=new Date(); document.write(d.getFullYear()); ADP, Inc. Find the package that's right for your business. A) Employee earnings record 9. Payment of a long-term note payable.} Its best practice to audit payroll every pay period. PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. D) The same as the chart of accounts He is the sole author of all the materials on AccountingCoach.com. D) A debit balance will increase the income of the firm's income statement. 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. Switching payroll service providers made easy. What is a use of a firm's labor trend reports? Copyright How might globalists and traditionalists view cultures, places, and regions differently. 4. 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. 39. 30. Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. A) It allows managers to determine the effect of employee labor on departmental profits. 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. Paymentofanaccountpayable. C) A debit balance will decrease the expenses of the firm's income statement. The payroll register of any firm needs to have specific details on every employee. Yes, Employees FIT Payable . A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. 40. Direct materials usage. Administrating the state unemployment taxes. A) It is a list of all persons and companies that the company pays money during a period. C) Garnishment Which of the following best describes the purpose of the payroll register? 53. 3. 401(k) contributions $ 1,115. Which of the following is not a provision of ERISA? \text{11. total An employee is hired at a pay rate of $10 per hour. This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. ls the payroll register used for journalizing the payroll entries? D) As liabilities Issuance of common stock.} below deck mediterranean 2022 cast. Wages and salaries payable 226 ??? 1. Compute the employer's payroll taxes for the period. Your sister currently uses 1,700 minutes and sends 1,600 texts each month. What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? 7. Federal withholding tax payable 220 $ 50,725. 11. May criminal background checks be used by all employers for any person? B. Saleofequipmentforanotereceivable. A) Worker's Compensation B) Equity Purchaseofinventory. 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On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. Single click the box with the question mark to produce a check, In the following payroll transaction, what is the amount of the net pay? Protection under the provisions of the Age Discrimination in Employment Act begins at what age?? In this last task, the following steps will be completed. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Oct 27 Wages and salaries payable 226 202,671. A payroll register can also . (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 expense 522 $ 12,987. Which of the following records lists all employees who earn remuneration, the amount of remuneration, the deductions, and the net amount paid for each payroll period? C) Form W- This will increase A) It communicates departmental profitability. C) Debit Revenue, $250,000; Credit Cash, $250, A) the beginning and ending dates of the pay period Employees with less than a five year tenure of employment. Payroll journal entries are used to record the compensation paid to employees. Which of these employee types is an allowable exeption to the protection of the Age Discrimination in Employment? A payroll register is the record for a pay period that lists employee hours worked, gross pay, net pay, deductions, and payroll date. 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? The Federal Insurance Contributions Act covers restrictions on the employment of child labor. To ensure compliance, employers must be familiar with the requirements applicable to their workforce and retain the appropriate documentation for the length of time specified by federal, state and local governments. A) The total of the debits must equal the total of the credits. Type an equals sign (=) to signal the fact that the cell contains a formula. A) It is employee labor that may be billed to customers. E. All of the above are provisions of ERISA. Vacaction Benefits Payable- liability. At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. Less than five have large-screen TVs? This will decrease 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. Prior year's earnings < Prev 18 of 40 . 8. The first answer is provided as an example. The purpose of payroll register is to record of all the payment details for employees during a specific pay period. Which of the following laws establishes the minimum wage? 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) \text{14. Payroll journals are records of all payroll transactions. Department of branch 4. Under the U.S. payroll tax a employee has to pay the tax on hi . Our online store for HR apps and more; for customers, partners and developers. Employee SIT Payable-liability Can employees view documents in their files that are marked confidential? Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. What does the Civil Rights Act of 1954 cover? The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. B) Because payroll represents an asset and an income of the business. After recording this entry, reverse it at the beginning of the following accounting period, and then record the actual payroll expense (as just described under the "Primary Payroll Journal Entry" section whenever it occurs. For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. Didier and Sons had the following employer's share payroll tax general journal entry for the May The total of each distribution column shows the total amount of that department's wage expense. To which items is information from the payroll register transferred? & \text{ } & \text{ }\\ B) $2,572. B) By dollar amount When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger. 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. incomes are, the higher the profitability will be. 18. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). Which of the following is not a provision of FLSA? Single click the box with the question & \text{O} & \text{CO}\\ Indirect materials usage. Because of the amount of sensitive information included in the payroll register, access tends to be limited only to those authorized within a company, such as the payroll manager. Which of the following steps should be taken by the Human Resources Department when hiring new employees? Many employers find a payroll register to be an indispensable part of their business because of its ability to help them keep both their payroll records and their budgets in order. 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. May an employer terminate an employee for lying on an application form? Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). \text{10. An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. How can the information shown in the employees' earnings record be used? Comprehensive payroll and HR software solutions. the total expenses of the firm and decrease the net income of the firm. Which act sets the minimum wage, and what is the current wage rate? Learn how we can tackle your industry demands together. Are FICA taxes levied upon employers only? & \text{ } & \text{ }\\ E. Sex, Which of the following statements is NOT a provisions of ERISA? Vacation Benefits Expense-Operating expense You can think of it as a summary of all the payroll activity during a period. Under FMLA, the time must be used in one uninterrupted period of time. 10. B) It must create an adjusting entry to recognize the payroll accrual. 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. On which financial report will employer-paid portions of health insurance premiums be listed? Make payments. View notices and letters. Issuance of bonds.} 1. What is the amount of the 401(k) contributions for the pay date? The amounts needed for the payroll entries in the journal come from the employee's earning records. Sets minimum wage. To prohibit discrimination on the basis of age in the employment practices of employer. Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. Jun 23 Wages and. D) The transaction appears on page four of the General Journal. Employers use the employee's earnings record in preparing ___. Garnishment $ 450. Which of the following are processes that occur in most payroll accounting systems? C) $1,715. D) The balance sheet 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. D) It adds complexity to the payroll register. D) Form 941 The basic entry (assuming no further breakdown of debits by individual department) is: There may be a number of additional employee deductions to include in this journal entry. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. B) The income statement Attend webinars or find out where and when we can connect at in-person events. D) Both documents contain details of employee earnings, deductions, and disbursement for a