C) proof of payroll deposits The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. The Federal Insurance Contributions Act covers restrictions on the employment of child labor. 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? You need to purchase a plan for your teenage sister. 9. It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. Payroll data for the current week are as follows: hours worked, 46; federal income taxwithheld, $110; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment C) Credit $4, A) Medicare tax Indirect materials usage. How does the FIFO method different from the weighted-average method? B. D) It adds complexity to the payroll register. A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. How are the funds used which are provided by FUTA and SUTA? How do accrued, but not paid, wages appear on the balance sheet? Multiple Choice. What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? A credit of $16,250 is recorded on the June 25 Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? 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. Wages and salaries payable 226 202,671. Purchase of treasury stock.} A) $399,472. Get inspired to begin transforming HR at your company. 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. C) Earnings subject to FICA tax B) Debit $4, The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. Form W-2 The primary payroll journal entry is for the initial recordation of a payroll. Medicare tax payable 3,197. Collectionofanaccountreceivable. 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? Paymentofemployeesalaries.2. 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. d. At least seven homes have large-screen TVs? A well-kept payroll register is also useful when preparing payroll tax reports, including: A payroll register is a record of payroll information for every employee each pay period. A) Form W- A magnifying glass. 1. Jan 19 Wages and salaries payable 226 8,134. E. Sex, Which of the following statements is NOT a provisions of ERISA? Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. At a minimum, payroll registers help businesses: But thats hardly the extent of how beneficial a payroll register can be. Does FLSA require all employees to be paid weekly, biweekly', monthly? ls Form l-9 completed only by employees born in outside of the USA? ADP helps organizations of all types and sizes unlock their potential. Are unions and employment agencies covered under the Civil Rights Act of 1964? Purchaseofrentinadvance. Journal entries? Book the entry on the date paychecks are distributed. 3. This information is also reflected in summary level entries in the businesss general ledger. Q09. Protection under the provisions of the Age Discrimination in Employment Act begins at what age? B) Employee pay remittance and voluntary deduction remittance 10. 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. 1. TransactionTypeofActivityCashInfloworOutflow1. Cash 101 202,671. Social Security tax $ 1,670. Record the health insurance deduction. ADP hires in over 26 countries around the world for a variety of amazing careers. & \text{ } & \text{ }\\ * A. \text{5. Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. incomes are, the higher the profitability will be. 6. in its Federal withholding tax payable account. 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. 3. What are the General Journal entries that should appear on each pay date? E. All are provisions of FLSA. 4. What is the term for transferring data from the General Journal to the General Ledger? Quickly connect ADP solutions to popular software, ERPs and other HR systems. The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. Health Insurance payable 224 13,618. Basic payroll register templates can be found online or created in programs like Excel. You can think of it as a summary of all the payroll activity during a period. D) information about the firm's liabilities and year-to- date earnings. Compute and record the employee's SUTA contributions. the total incomes of the firm and decrease the net income of the firm. D. Requires equal pay for equal work, regardless of gender. Name of each employee 5. E. OASDI. Which basic records are generated in most payroll accounting systems? B) Total overtime earnings Use the information in the previous exercise to prepare journal entries for the following events in May. Copyright 2023 AccountingCoach, LLC. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. 20XX: Gross pay $ 27,894. Forbids discrimination in hiring. When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger. All of these journal entries are noted below. \text{3. At ADP, security is integral to our products, our business processes and our infrastructure. 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. All rights reserved.AccountingCoach is a registered trademark. McHale Enterprises has the following incomplete General Journal entry for the most recent pay Single click the box with the question mark to produce a check mark for a correct < Prey 18 of 40 Pay period dates. Attend webinars or find out where and when we can connect at in-person events. Chapter 6: Analyzing and Journalizing Payroll, , , AP Lang - Television: The Plug-In Drug (T/V), Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition, Alvin A Arens, Mark A Beasley, Randal J Elder, National Association for the Advancement of Colored People. Transfer of finished jobs to the finished goods inventory. C) It is a worksheet that accountants use to ensure payroll accuracy. Federal withholding tax payable 220 $ 50,725. Records and the General Journal. For example, there may be deductions for 401(k) pension plans, health insurance, life insurance, vision insurance, and for the repayment of advances. C) It should disburse the accrued pay to the employees. Which of the following steps should be taken by the Human Resources Department when hiring new employees? under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. See how we help organizations like yours with a wider range of payroll and HR options than any other provider. Which of these employee types is an allowable exeption to the protection of the Age Discrimination in Employment? Employee SIT Payable-liability Your portfolio has three asset classes. The town is considering an ordinance that would prohibit putting Explain the use of the "Cumulative" column in the employee's earnings record. Free True False Q03 Computing the sum of rows and columns is known by the term Multiple Choice Q04 Where is one place that information from the payroll register would not be transferred? A) Revenue 1. C) Labor reports C. ERISA establishes minimum vesting schedules that protect the workers' benefits. Under the U.S. payroll tax a employee has to pay the tax on hi . Garnishment $ 450. expense 522 $ 182,930. On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. The first answer is provided as an example. Only "A payroll register" and "The employee's earnings record" are correct. \text{10. CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. 56. A) Employee pay accrual and employee pay disbursement 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? C) Because payroll represents a liability and an expense of the business. Saleofequipmentforanotereceivable.10. expenses are, the higher the profitability will be. How will payroll deductions from employees wages for their portion of 401K plans be recorded? B) $15,298. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Under FMLA, the time must be used in one uninterrupted period of time. DATE DESCRIPTION POST REF. Which act sets the minimum wage, and what is the current wage rate? \begin{matrix} D) A debit balance will increase the income of the firm's income statement. To which items is information from the payroll register transferred? D) Debit Health Insurance Payable $27,237; Credit Cash $27,237. B) Posting 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) On which financial report will employer-paid portions of health insurance premiums be listed? 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. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. Copyright 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. 5. C) It is a report designed for external stakeholders. D) As liabilities B) Payroll register During the past week, the employee worked 50 hours. Sets minimum wage. D) It must wait until the next financial period to record the payroll data. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. It records payroll record on each employee separately. The tax payers standard deduction and the personal exemptions ($3,650) allowed for the tax year divided by the number of ay periods in the year. & \text{ } & \text{ }\\ Does the ADEA quit protecting employees after the age of 70? & \text{ } & \text{ }\\ The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries. tax Remittance on February 15? so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. B) It is always expressed as assets = liabilities - owners' equity. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? B) It should make a note to create the reversing entry at the end of the next financial period. For classifying the gross wages and salaries according to the nature of the wage and salary expense. What is your sisters total cost under each of the two plans? Social Security tax payable 221 17,980. 19. It records payroll record on each employee separately. Which of the following laws establishes the minimum wage? The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. A) Ledgering check mark For a correct answer and double click the box with the question mark to empty the How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? C) A debit balance will decrease the expenses of the firm's income statement. one answer. 57. D) The labor report You face specific challenges that require solutions based on experience. 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? FIT Payable-liability mark to empty the box For a wrong answer. 8. mark for a correct Answer and double click the box with the question mark to empty the box for Purchaseofinventory. 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.