Questions and Answers
All the payroll information needed to prepare payroll and tax reports is found on?
The payroll register and the employee earnings record
The payroll journal entry is based on the totals of the?
Earnings Total column, each deduction column, and the Net Pay column
The Earnings Total column total is journalized as a debit to?
Salary Expense
The total of the Federal Income Tax column of a payroll register is credited to?
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The total of the Net Pay column of the payroll register is credited to?
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When a semimonthly payroll is paid, the credit to Cash is equal to the?
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Employer business taxes are?
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Payroll taxes that are paid by both the employer and the employee are?
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A federal tax used for state and federal administrative expenses of the unemployment program is the?
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A state tax used to pay benefits to unemployed workers is the?
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To record the employer payroll taxes expense, the following accounts are credited?
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Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with?
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Each employer is required by law to report payroll taxes on an?
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To record the total federal tax payment for employee income tax, social security tax, and Medicare tax, the account credited is?
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To record the payment of federal unemployment tax, the account debited is?
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Record the transactions for paid cash for semimonthly payroll:
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Record the transactions for recorded employer payroll taxes expense:
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Record the payment of cash for liability for employee income tax, social security tax, and Medicare tax:
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Record the payment of federal unemployment tax liability:
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Record the payment of state unemployment tax liability:
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Study Notes
Payroll Management Key Concepts
- Payroll information essential for tax reports is found in the payroll register and employee earnings record.
- The payroll journal entry is based on totals from the Earnings Total column, each deduction column, and the Net Pay column.
Payroll Entries
- Earnings Total: Journalized as a debit to Salary Expense.
- Federal Income Tax: Total credited to a liability account.
- Net Pay: Total credited to an asset account.
- Cash credit for semimonthly payroll equals the total net pay of employees.
Employer Responsibilities
- Employer business taxes are categorized as expenses.
- Payroll taxes paid by both employer and employee include Social Security and Medicare taxes.
- Employers must issue IRS Form W-2 to each employee detailing withheld amounts.
Tax Reporting and Payments
- Federal Unemployment Tax provides funding for state and federal unemployment programs.
- State Unemployment Tax is utilized to pay benefits to unemployed workers.
- Employers report payroll taxes using IRS Form 941.
- Payment of federal tax for income tax, Social Security, and Medicare results in a debit to Cash.
Accounting for Payroll Taxes
- To record employer payroll taxes:
- Debit Payroll Taxes Expense.
- Credit accounts for Social Security Tax Payable, Medicare Tax Payable, and both Federal and State Unemployment Tax Payables.
- Payments for employee-related liabilities are accounted for by debiting the respective tax payable accounts and crediting Cash.
Cash Payments for Tax Liabilities
- Federal Unemployment Tax payment is recorded by debiting Unemployment Tax Payable - Federal and crediting Cash.
- State Unemployment Tax payment is recorded similarly with Unemployment Tax Payable - State.
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Description
Prepare for your Accounting Chapter 13 exam with these study guide flashcards. This quiz covers essential payroll information, journal entries, and key concepts necessary for understanding payroll processing and reporting. Test your knowledge and reinforce your learning with targeted questions.