Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? must it do to recognize the liabilities and expenses? C) It designates where labor is used in a firm. Discover the latest Today at Work insights from the ADP Research Institute. A) Social Security tax, $204; Medicare tax, $792. False, The General Journal contains records of a firm's financial transactions, which appear 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. Paymentofincometaxes. At December 31, 2022 the employee's pay rate was $15. & \text{O} & \text{CO}\\ Which of the following steps should be taken by the Human Resources Department when hiring new employees? A. 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? See Answer. According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? 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. Collectionofanaccountreceivable. Wages and salaries-Operating expense-debit Which of the following is NOT part of the social security program? What is general priority order concerning wage attachements. Under FMLA, may employers exempt the highest paid 10 percent of the workforce? D) The same as the chart of accounts A) Net pay Sale of land for cash.} each option. Sale and delivery of finished goods to customers for cash (record unadjusted cost of sales). The W-2 provides all of the information required by the Affordable Care Act. Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. Continuing Payroll Problem-B OLNEY COMPANY, INC. 2. During the past week, the employee worked 50 hours. A) Because payroll represents an asset and an income of the business. B) Employee address (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 From best practices to advice and HR consulting. The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries. Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) At ADP, we believe sports and business both require the right approach. A. DATE DESCRIPTION POST REF. It is a monthly schedule depositor. Employers also use it to: While all of these functions can be accomplished manually, dedicated payroll software provides information at the click of a button, making reporting fast and simple. C) It is a report designed for external stakeholders. 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. Requirements: Record the deduction for group insurance. the health Insurance is qualified under Section 125? How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. Collectionofnotesreceivable. Discover a wealth of knowledge to help you tackle payroll, HR and benefits, and compliance. 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. D) It may contain whatever accounts the accountant wishes to include. Access the definitive source for exclusive data-driven insights on todays working world. $y = -x - 4$. See how we help organizations like yours with a wider range of payroll and HR options than any other provider. The payroll register contains ________. 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. < Prey 18 of 40 Pay period dates. May an employer terminate an employee for lying on an application form? \text{3. E. All are provisions of FLSA. 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? Oct 27 Wages and salaries payable 226 202,671. 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). B) It depicts the ideal distribution of labor in a firm. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. This will increase the Sometimes you will see all the taxes lumped together into one account called Payroll Taxes Payable. 1. Fast, easy, accurate payroll and tax, so you can save time and money. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." & \text{ } & \text{ }\\ D) The labor report the total incomes of the firm and decrease the net income of the firm. Of the items in the following list, which one (s) should appear in a payroll register? Your portfolio has three asset classes. Correct answer: Option (1) Medicare tax is the correct answer. Does FLSA require the employer to display a poster with the FLSA rules? All nine have large-screen TVs? Paymentofanaccountpayable. B) It must create an adjusting entry to recognize the payroll accrual. Define hours worked. A payroll register can also . Based on the following data, prepare the appropriate journal entry when paying employees: Total wages earned were $8000 Under FLMA, do any states have paid a family leave plan? 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. A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. How are employees who do not have bank accounts paid by an employer who uses an electronic fundstransfer system for payroll. Payment of income taxes.} \text{5. posted an additional $4,390 on its October 31 pay date. 9. Describe the main types of records used to collect payroll data. 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. Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. 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. 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. Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Elliot Aronson, Robin M. Akert, Samuel R. Sommers, Timothy D. Wilson, Fundamentals of Financial Management, Concise Edition. Report changes to your business. & \text{ } & \text{ }\\ Get exclusive business insights delivered straight to your inbox. As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $14, D. Requires equal pay for equal work, regardless of gender. Collection of an account receivable.} Fair Labor Standards Act 6. Social Security tax payable 221 10,517. For what reason are "distribution" columns sometimes provided in the payroll register? D) Employee pay recording and employer share payroll taxes recording The employees gross wages for the past week are. 401(k) contributions payable 223 ??? E. 65, Which of the following is not a provision of the Fair Labor Standards Act? The highest-paid 10 percent of their workforce. Federal withholding tax payable 220 399,472. Jul 1 Wages and salaries payable 226 113,562. 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. Jan 31 J4 420 1, On which income statement will the state unemployment tax expense appear under accrual accounting? B) Social Security tax, $792; Medicare tax, $204. C) proof of payroll deposits on the first day of the next financial period? Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. B) General Journal prepare the payroll register enter the information into the employee payroll records prepare paychecks and send them to paymaster for distribution to employees send a copy of the payroll register to Accounts Payable social security taxes income tax withholding payroll deductions in tax: Wages and salaries withholding taxes payable Q08. What is the primary purpose of a labor report? 60. Enchanted Creations has the following data in its Federal withholding tax payable General Ledger These liabilities accompany every payroll you run. We have credited a liability account for each of the tax amounts. A. ADEA FICA (Federal Insurance Contributions Act). B) Debit $4, For fill-in-the-blank questions, press or click on the blank space provided. * 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. C) Garnishment It is quite common to create a manual check, either because an employee was short-paid in the preceding payroll, or because the company is laying off or firing an employee, and so is obligated to pay that person before the next regularly scheduled payroll. 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. Want to read all 11 pages? 19. Protection under the provisions of the Age Discrimination in Employment Act begins at what age?? \text{7. 11. All salaried employees. With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. C) Alphabetically Social Security tax payable 221 17,980. Copyright D) The balance sheet What is The balance in the account? depositor, what entry Should appear on November 15 for the remittance of the month's Social FUTA Taxes Payable-liability 10. \begin{matrix} What entry should appear in the General Ledger to reflect the Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. Requirements: 1. C) Employee earnings record The first answer is provided as an example. the payroll? C) the name of the firm and the payroll accountant The total of each distribution column shows the total amount of that department's wage expense. BALANCE DATE DESCRIPTION POST REF. ls Form l-9 completed only by employees born in outside of the USA? It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services. 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. Which of the following reports links the accounting and the human resources departments? What must the employer do with unclaimed checks. D) Both documents contain details of employee earnings, deductions, and disbursement for a Employers use the employee's earnings record in preparing ___. answer And double click the box with the question mark to empty the box for a wrong answer. C. National Origin Gross wages of $500.00 less withholdings of $38.25 for FICA and $87.25 for federal and state income taxes. Paymentofemployeesalaries.OCO2. Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. C) A debit balance will decrease the expenses of the firm's income statement. Multiple Choice. (You may select more than one answer. C) Employee pay disbursement and voluntary deduction remittance A) It should create a reminder about the accrual to ensure accuracy of computations on the next May 14 Wages and salaries payable 226 117,334. \text{4. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. D. 50 True, A debit always decreases the balance of an account. 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. How do the Stanford-Binet and Wechsler tests differ? 14. 15. Verify the date and enter General as the reference. b. Federal withholding tax payable 220 $ ??? pay Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. When the employer pays the employee in 2023 for the vacation earned in 2022, what account will the company debit? 18. incorrect.) Single click the box with the question Medicare tax payable 222 4,205. 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. B. ERISA requires each employer to establish a pension plan. Raw materials purchases for cash. B) Employee pay remittance and voluntary deduction remittance Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. Loan to another firm.} Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. Find payroll and retirement calculators, plus tax and compliance resources. Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. Explain the major provisions of the Fair Labor Standards Act. Rate of pay 8. a. Walsh-Healey Public Contracts Act one answer. A company may occasionally print manual paychecks to employees, either because of pay adjustments or employment terminations. 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. Social Security tax payable ??? Entitled to retirement program even if you're no longer working there. D) 401(k) contributions Does every state have both federal and state unemployment laws? 34. 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 Fair Labor Standards Act (Federal Wage & Hour Law). 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 Book the entry on the date paychecks are distributed. What does the Civil Rights Act of 1954 cover? 20. Issuanceofbonds.11. Direct labor usage. 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. ADP is a better way to work for you and your employees, so everyone can reach their full potential. 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? Saleoflandforcash.3. C. FLSA What is the term for transferring data from the General Journal to the General Ledger? a wrong answer. B) Because payroll represents an asset and an income of the business. Paymentofalong-termnotepayable. Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). 40. Current period taxable earnings for FICA taxes are as. expense 522 $ 12,987. Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month? Besides payroll information, the payroll register contains ________. True (California, New Jersey, New York & Rhode Island). What is your sisters total cost under each of the two plans? At ADP, security is integral to our products, our business processes and our infrastructure. True Which of the following is true of employee's earnings record? 61. The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. B. Didier and Sons had the following employer's share payroll tax general journal entry for the May 2. Feb 15 J Employers use the employee's earnings record in preparing ___. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial D. FMLA Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. Upload your study docs or become a Course Hero member to access this document Continue to access Term Winter Professor N/A Tags Federal income tax payable 11,955. grass clippings at the curb for pickup because local landfills cannot handle the volume. For fill-in-the-blank questions, press or click on the blank space provided. The key types of payroll journal entries are noted below. Federal withholding tax payable 220 $ 50,725. employees' payroll, one for the employer's share of the taxes. & \text{ } & \text{ }\\ BALANCE A payroll register is a valuable tool that records employee wage information for each pay period and pay date. B) It is an individual register maintained for each employee, listing of all the payroll information. The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. 28. ERISA provides for full vesting of the employer's contributions in three years or gradually over six. Single click A) Medicare tax A) $1,582. D) Debit $8. department. 15. Does every state have state unemployment laws? 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. 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. Which of the following is true about the fundamental accounting equation? Safe-guards your retirement plans *not required to have a pension plan. ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. We have been recognized by esteemed organizations for the value we bring to our clients, our associates and the global community. question mark Will be automatically graded as incorrect.) 401(k) contributions $ 1,115. d. At least seven homes have large-screen TVs? 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. HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Administrating the state unemployment taxes. Wages and salaries payable 226 117,334. D) General journal numbers Which act sets the minimum wage, and what is the current wage rate? B) Total overtime earnings lf an investigative consumer report is used in an employment decision, does the employer need to tell the individual? Which basic records are generated in most payroll accounting systems? C) Form W- A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. What portions of an employee's wages are exempt from a federal tax levy. Which items would be debited in the General Journal entry to record the employees' share of In a sample of nine homes, what is the probability that: a. Whether you operate in multiple countries or just one, we can provide local expertise to support your global workforce strategy. A. ERISA applies to pension and welfare plans established by any employer engages in commerce. total Sets minimum wage. A. Name of each employee 5. True, The information in the payroll register forms the basis for entries in the Employee Earnings Discover what others say about us. Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. (You may select more than one answer. A) It is employee labor that may be billed to customers. B) Debit Cash, $250,000; Credit Revenue, $250, What are the main kinds of information contained in a payroll register? Most office supply stores also carry books that are formatted specifically to record payroll information. 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. Gross pay and net pay. A payroll register does not include: Multiple Choice Pay period dates. In January 2023 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2022. Less than five have large-screen TVs? Can employees view documents in their files that are marked confidential? Title of report 2. ls the written record sent to the Payroll Department telling them that a new employee should be added to the payroll called a hiring notice? & \text{ } & \text{ }\\ Cross), Give Me Liberty! Hours worked. Under FMLA, the time must be used in one uninterrupted period of time. C) $12,576. Make payments. Q09. FICA Taxes payable-HI-liability Saleofequipmentforanotereceivable. D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? box for a wrong Answer. You can think of it as a summary of all the payroll activity during a period. View notices and letters. Payroll journals are records of all payroll transactions. serves as a backup in the event of computer failure. Rushing River Boats has the following data in its Social Security tax payable General Ledger Purchaseofinventory. Sale of equipment for a note receivable.} A) It must credit the asset accounts for the appropriate payroll amounts. A) Debit $1, \text{15. D) Federal withholding tax payable The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. accurate disbursal of payroll. D) As liabilities This will increase account: Social Security tax payable ACCOUNT NO. Color Issuanceofcommonstock. 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. It records payroll record on each employee separately. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? C) It must pay its employees for the wages earned as of that date. If you are recording it directly into the general ledger or the payroll journal, then use the same line items already noted for the primary payroll journal entry. Saleofequipmentforanotereceivable.10. Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? A) Net pay pay date. 4. Net pay $ 19,747. Which of the following is not a provision of FLSA? Records and the General Journal. \text{10. In other words, a payroll register is the document that records all of the details about employees' payroll during a period. Protection under the provisions of the Age Discrimination in Employment Act begins at what age? Payroll journal entries are used to record the compensation paid to employees. Basic payroll register templates can be found online or created in programs like Excel. 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. This information is also reflected in summary level entries in the businesss general ledger. For classifying the gross wages and salaries according to the nature of the wage and salary expense. Explain the use of the "Cumulative" column in the employee's earnings record. 5 pay date: May 5 Payroll Taxes Expense $ 27,671. The purpose of payroll register is to record of all the payment details for employees during a specific pay period. Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). C) It should disburse the accrued pay to the employees. D) information about the firm's liabilities Purchaseoftreasurystock.14. Union Dues payable 227 4,683. Learn how we can make a difference by joining forces to improve the success of the clients we share. Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. 7. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. A) Both documents contain year-to-date totals of taxes. 12. tax Remittance on February 15? 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? account: Social Security tax payable ACCOUNT NO. Purchase of rent in advance.} 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. C) Because payroll represents a liability and an expense of the business. B) the total gross pay, deductions, and net pay during the period 5. C. All employees under the age of 30. Dont take our word for it. 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. During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. 8. What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? Whenever employers withhold taxes and deductions from wages, pay employees or deposit tax payments with government agencies, that information should be simultaneously documented in the payroll register. A) the beginning and ending dates of the pay period Gross pay and net pay. The Fair Labor Standards Act is commonly known as the Federal Wage and Hour Law. E. Highest-paid 10% of their workforce. Collection of notes receivable.} An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. B) A debit balance will increase the expenses of the firm's income statement. 27. B) Posting Step 2: Working Hours. Any boxes left with a question mark will be Cash 101 202,671. D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 C) Earnings subject to FICA tax On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. What is true about the trial balance? Loantoanotherfirm.12. C) Credit $4, expense 522 $ 182,930.