mark to empty the box For a wrong answer. Loan to another firm.} depositor, what entry Should appear on November 15 for the remittance of the month's Social 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. Saleofequipmentforanotereceivable. When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger. An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. Todays digital landscape means limitless possibilities, and also complex security risks and threats. What is the role of enhancing qualities in the conceptual framework? \text{9. D) Because payroll represents a liability and an expense of the business. B. ERISA How do accrued, but not paid, wages appear on the balance sheet? Describe the main types of records used to collect payroll data. Period covered by the payroll and the pay date. Continuing Payroll Problem-B OLNEY COMPANY, INC. Which of the following reports links the accounting and the human resources departments? e. None of the above. B) It is always expressed as assets = liabilities - owners' equity. 1. 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. D) The transaction appears on page four of the General Journal. Required: 1. Only "A payroll register" and "The employee's earnings record" are correct. The other hourly employees receive overtime pay when they work more than 35 hours in one week. 34. B) It is an individual register maintained for each employee, listing of all the payroll information. Saleofequipmentforcash. At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. (You may select more than one answer. C) Form W- 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. For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. 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. C) It allows payroll employees to divert funds into faux accounts. Type an equals sign (=) to signal the fact that the cell contains a formula. A) Worker's Compensation B. ERISA requires each employer to establish a pension plan. B) Payroll register D) It must wait until the next financial period to record the payroll data. Why is it important to have columns on the payroll register title "Earnings subject to Federal Yes, Employees FIT Payable . C) The balance sheet Employee benefits, flexible administration, business insurance, and retirement plans. question mark Will be automatically graded as incorrect.) All rights reserved.AccountingCoach is a registered trademark. February 7 Journalize the employer . 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. Most firms are now using a standard reference inquiry form, supplied by the IRS, If an investigative consumer report is being checked, the job applicant must be notified in writing by the employer that such a report is being sought, There are no states that allow employees to access their personnel files, The payroll register is a separate payroll record that is kept on each employee, A payroll register lists all employees who have earned remuneration, the amount of remuneration, the deductions, and the net amount paid for each pay period, The amounts needed for the payroll entries in the journal come from the employee's earnings record, The trend toward outsourcing of payroll operations has weakened in recent years. 38. Withholding" and "Earnings subject to FICA"? C. 40 1. 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. Health Insurance payable 224 13,618. Sale of equipment for cash.} 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. d. Occupational Safety and Health Act 58. 61. The lower payroll select more than one answer. What are the General Journal entries that should appear on each pay date? A) Employee pay accrual and employee pay disbursement True False. 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. & \text{ } & \text{ }\\ Transaction1. A) $1,582. Form W-2 A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. & \text{ } & \text{ }\\ 41. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. 33. How does a debit balance in the wages and salaries expense account affect a firm's income Which of the following is true of employee's earnings record? Time worked - regular & overtime 7. Single click When the firm remits its health insurance premium for this pay date, what is the General Journal C) It is the fourth repetition of the same entry. How can the information shown in the employees' earnings record be used? Fast, easy, accurate payroll and tax, so you can save time and money. D) The labor report Explain the major provisions of the Fair Labor Standards Act. 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. Social Security tax payable ??? B) The income statement To prohibit discrimination on the basis of age in the employment practices of employer. What is the amount of the 401(k) contributions for the pay date? C) Earnings subject to FICA tax TransactionTypeofActivityCashInfloworOutflow1. This information is also reflected in summary level entries in the businesss general ledger. Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. 60. 28. The payroll register contains ________. ERISA provides for full vesting of the employer's contribution to an employee's pension fund in 3 years or gradually over: these factors are bona fide occupational qualifications for the job. Your sister currently uses 1,700 minutes and sends 1,600 texts each month. ADP helps organizations of all types and sizes unlock their potential. B) FUTA the total expenses of the firm and decrease the net income of the firm. Which report contains employer share tax expenses for a period? D) Debit $8. 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. Define hours worked. 30. & \text{ } & \text{ }\\ A) Social Security tax, $204; Medicare tax, $792. B) Credit $1, serves as a backup in the event of computer failure. If the expected returns are 3.8%3.8 \%3.8% for the T-bills, 12.3%12.3 \%12.3% for the large-company stocks, and 17.4%17.4 \%17.4% for the small-company stocks, what is the expected return of the portfolio? The purpose of payroll register is to record of all the payment details for employees during a specific pay period. These entries are then incorporated into an entity's financial statements through the general ledger. mark to produce a Check mark for a correct answer and double click the box with the question Administrating the state unemployment taxes. Direct labor usage. A) the firm's payroll checking account information \text{13. \text{12. E. All of the above are provisions of ERISA. You need to purchase a plan for your teenage sister. General Journal entry to record this transaction? Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? Verify the date and enter General as the reference. & \text{ } & \text{ }\\ Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. DEBIT CREDIT DEBIT CREDIT BALANCE Under FLMA, do any states have paid a family leave plan? The Federal Insurance Contributions Act covers restrictions on the employment of child labor. What is your sisters total cost under each of the two plans? What are the main kinds of information contained in a payroll register? A magnifying glass. This will increase A) Credit $8, 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 Federal withholding tax $ 3,570. D) The same as the chart of accounts Multiple Choice Q05 Transfer of finished jobs to the finished goods inventory. 7. With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. (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 Exempt salaried employees are often paid for their work right up to payday. A) the beginning and ending dates of the pay period Purchase of treasury stock.} 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. Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? Fair Labor Standards Act 18 C) Because payroll represents a liability and an expense of the business. Copyright 2023 AccountingCoach, LLC. Collection of an account receivable.} True False. 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) DEBIT CREDIT DEBIT CREDIT \text{11. 1. Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. Saleoflandforcash. 12. Find payroll and retirement calculators, plus tax and compliance resources. ADP hires in over 26 countries around the world for a variety of amazing careers. 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. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . 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. 5. 64. BALANCE DATE DESCRIPTION POST REF. & \text{ } & \text{ }\\ Issuance of common stock.} The lower the payroll Payroll-Operating expense-liability Payroll Accounting (Practice Quiz) Print PDF For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. C) $12,576. This will increase the Single click the box with the question mark to produce a 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. Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. D. All employees earning the minimum wage. Under FMLA, the time must be used in one uninterrupted period of time. Paymentofincometaxes. There will also be credits to a number of . During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. Report new employees or independent . Compute and record the Kipley Company's SUTA and FUTA contributions. D. FMLA C. All employees under the age of 30. C) $1,715. These computations are shown in the Employee Payroll Register. A) Net pay What is the amount of the Social Security tax payable? What is the That's why we've partnered with some of the top athletes in the world. Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. E. Sex, Which of the following statements is NOT a provisions of ERISA? Indirect materials usage. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? Federal income tax payable 11,955. 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. Deductions. Jan 31 J4 420 1, What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? In other words, a payroll register is the document that records all of the details about employees' payroll during a period. The amounts needed for the payroll entries in the journal come from the employee's earning records. D) Health insurance payable 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 401(k) contributions $ 1,115. A credit of $16,250 is recorded on the June 25 A) By order of importance You can enter a formula into a cell manually (typing it in) or by pointing to the cells. B) Because payroll represents an asset and an income of the business. 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? Net pay $ 19,747. Are employers required to keep a photocopy of the l-9 form? Records and the General Journal. This will increase May criminal background checks be used by all employers for any person? Basic payroll register templates can be found online or created in programs like Excel. Which of the following is an example of a trade association? 8. Payroll journals are records of all payroll transactions. DATE DESCRIPTION POST REF. How to do payroll accounting: 7 steps At first glance, payroll accounting can be scary. \text{2. 2. The payroll register needs to record the hours each employee has served in the firm in a day. Any Boxes left with a question mark will be automatically graded as incorrect.) 31. Current period taxable earnings for FICA taxes are as. 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. D) Federal withholding tax payable D. Requires equal pay for equal work, regardless of gender. Saleofequipmentforanotereceivable.10. 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. B) It should make a note to create the reversing entry at the end of the next financial period. 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. What is a use of a firm's labor trend reports? Attend webinars or find out where and when we can connect at in-person events. Payroll registers generally are more detailed than payroll journals and include specific information about each employee.
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