account: Social Security tax payable ACCOUNT NO. A) As assets 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. What is a use of a firm's labor trend reports? Simplify and unify your HCM compliance processes. All rights reserved.AccountingCoach is a registered trademark. Report new employees or independent . The current minimum wage set by the Fair Labor Standards Act is $7.25 per hour, The FLSA imposes no record keeping requirements on employers, The employer is required by the FLSA to display a poster that informs employees of the provisions of the law, All states have set their minimum wage to be the same as the Federal government, Under the Federal Insurance Contributions Act, the Medicare portion of the tax is only paid by the employer, The FLSA provides health insurance for the aged and disabled(medicare), The tax paid to the federal government for unemployment taxes is used for paying state and federal administrative expenses of the unemployment program, The Self-Employment Contributions Act imposes a tax on the net earnings from self-employment derived by an individual from any trade or business, Each state imposes an income tax on employees that is 2 percent of gross wages, Only six states do not impose a state unemployment tax on employers in their state, One of the provisions of coverage of the Civil Rights Act is that the employer must have 15 or more workers, Title VII of the Civil rights Act protects all employees from arbitrary dismissal, By the use of executive orders, the federal government has banned discrimination in employment on government contracts, Employers not subject to Title VII coverage may come within the scope of the Civil Rights Act by reason of a contract or subcontract involving federal funds, Under the Civil Rights Act of 1964, the U.S. government is classified as an exempt employer, An exemption to the protection that the Age Discrimination in Employment Act provides for all workers over 40 involves executives who are 65 or older and who have held high policy making positions during the 2 year period prior to retirement, Under the Federal Personal Responsibility and Work Opportunity Reconciliation Act, every employer is required to report the name, address, and social security number of each new employee to the appropriate state agency, Form I-9 must be completed by each new hire, Employers are now required to photocopy new employees' form I- 9 documents, In order for the Walsh-Healey Public Contracts Act to protect laborers for contractors who furnish materials to any agency of the U.S., the contract amount must be at least $10,000, Under FMLA, the time off must be used in one uninterrupted period of time. Purchase of rent in advance.} ADP and the ADP logo are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. What entry should appear in the General Ledger to reflect the 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. D) $1,875. & \text{ } & \text{ }\\ What is your sisters total cost under each of the two plans? In January 2023 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2022. True, In the General Ledger, the debit column reflects the balance of the account. Verify the date and enter General as the reference. C) Because payroll represents a liability and an expense of the business. C) It is non-traceable labor that a company must absorb as overhead. \text{Transaction} & \text{Type of Activity} & \text{Cash Inflow or Outflow}\\ \hline You need to purchase a plan for your teenage sister. Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? & \text{ } & \text{ }\\ If a firm accrues the payroll due but not paid at the end of a financial period, what should it do Federal withholding tax payable 220 $ 50,725. With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. 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) Payroll accounts do not appear on the trial balance because of their changeable nature. Jeremy is single with two withholding allowances. Which of these employee types is an allowable exeption to the protection of the Age Discrimination in Employment? 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? D) Credit $30. May 14 Wages and salaries payable 226 117,334. When the firm remits its health insurance premium for this pay date, what is the General Journal A) It communicates departmental profitability. the health Insurance is qualified under Section 125? DEBIT CREDIT DEBIT CREDIT Who are the winners and who are the losers when the minimum wage is increased? Discover what others say about us. Which items would be debited in the General Journal entry to record the employees' share of the total incomes of the firm and decrease the net income of the firm. Application of overhead to goods in process. FUTA Taxes Payable-liability Loan to another firm.} B) Debit Cash, $250,000; Credit Revenue, $250, Payroll journal entries are used to record the compensation paid to employees. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? 3. B) The income statement Should an employer in Philadelphia record the liability for the withholding of all three income taxes in one liability account such as INcome Taxes Payable? What are the enhancing qualities of the qualitative characteristics? B) Payroll register According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? Which of the following represents the missing Social Security and Medicare taxes, assuming that. Raw materials purchases for cash. What is the primary purpose of a labor report? Payment of employee salaries.} D) Health insurance payable B) It depicts the ideal distribution of labor in a firm. B. ERISA BALANCE Any boxes left with a question mark will be automatically graded as Purchaseofinventory.7. D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 Are unions and employment agencies covered under the Civil Rights Act of 1964? Under FMLA, the time must be used in one uninterrupted period of time. Issuanceofbonds.11. 63. Dont just take our word for it. Health Insurance payable 224 13,618. 4. 3. This will increase the 57. Zipperle Company has the following payroll information for the pay period ending September 18, A) It is the fourth entry in the General Journal on that date. Jan 31 J4 420 1, Dont take our word for it. What is the D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General True, A debit always decreases the balance of an account. Security taxes? Information available through a secured web sit, kiosk, or interactive voice response system. C) Alphabetically A. Purchase of treasury stock.} Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? B. Employee FIT Payable-liability As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $14, At ADP, security is integral to our products, our business processes and our infrastructure. Prior year's earnings < Prev 18 of 40 . (You may select more than one answer. True, The information in the payroll register forms the basis for entries in the Employee Earnings Besides payroll information, the payroll register contains ________. so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. These liabilities accompany every payroll you run. 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. D) As liabilities C) Credit $1, DEBIT CREDIT DEBIT CREDIT \end{matrix} How are the funds used which are provided by FUTA and SUTA? Learn how we can tackle your industry demands together. Marital status & number of withholding allowances 6. C) Employee signature All earnings are taxable. the total expenses of the firm and increase the net income of the firm. ADP hires in over 26 countries around the world for a variety of amazing careers. Which report contains employer share tax expenses for a period? (You may select more than Want to read all 11 pages? Union Dues Payable-liability A) Because payroll represents an asset and an income of the business. 220 Gross pay and net pay. Age What is meant by the garnishment of wages? This entry may be avoided if the amount is immaterial. Identify distinctive compensation plans. Color Any Boxes left with a question mark will be automatically graded as incorrect.) \text{9. What is the role of enhancing qualities in the conceptual framework? 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. 1. D) Employee pay recording and employer share payroll taxes recording C) It allows payroll employees to divert funds into faux accounts. D) Federal withholding tax payable This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. 6. 8. From recruitment to retirement, getting the very best out of your people. C) Social Security tax, $746; Medicare tax, $174. How are employees who do not have bank accounts paid by an employer who uses an electronic fundstransfer system for payroll. 16. 12. FIT Payable-liability What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? 28. department. False, The General Journal contains records of a firm's financial transactions, which appear Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. Question: Continuing Payroll Problem, 6B: Chapter 6 You have almost completed the Olney Company's Employee Payroll Register for the pay period ending January 8, 20--. business. 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. Requirements: 1. Get inspired to begin transforming HR at your company. 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. C. National Origin \text{7. Administrating the state unemployment taxes. b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. Medicare tax payable 3,197. 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. A) the beginning and ending dates of the pay period $3,825 of employee withholding ($50,000 X 0.0765), Exempt Salaried Employees Paid Semi-monthly. 221 Your sister currently uses 1,700 minutes and sends 1,600 texts each month. They must disclose to the job applicant that they are seeking an investigative report. Neither The Balance Sheet Nor The Income Statement. (You may select more than one answer. True, Employee earnings records form the link between accounting and the human resources expenses are, the higher the profitability will be. \text{12. 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. 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? Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. e. None of the above. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. Any boxes Left with a question mark will be automatically graded as incorrect.) Medicare tax payable 222 ??? What is true about the trial balance? tax Remittance on February 15? $y = -x - 4$. D) Company website Todays digital landscape means limitless possibilities, and also complex security risks and threats. Authorize a power of attorney. D) The same as the chart of accounts B) $2,572. Q08. 1. Based on the following data, prepare the appropriate journal entry when paying employees: Total wages earned were $8000 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. 27. Quickly connect ADP solutions to popular software, ERPs and other HR systems. Employee benefits, flexible administration, business insurance, and retirement plans. C) Debit Revenue, $250,000; Credit Cash, $250, 38. Payroll Register This is the first task to completing Olney Company's payroll register. Social Security tax payable ??? A) Employee pay accrual and employee pay disbursement * Which basic records are generated in most payroll accounting systems? We have credited a liability account for each of the tax amounts. A) It is employee labor that may be billed to customers. Explain the use of the "Cumulative" column in the employee's earnings record. Apr 16 J23 16,495 32. Compute and record the employee's SUTA contributions. Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. When a firm has wages earned but not yet paid at the end of a financial reporting period, what 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. Which of the following laws establishes the minimum wage? On which financial report will employer-paid portions of health insurance premiums be listed? B) It should make a note to create the reversing entry at the end of the next financial period. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). False. A) Employee earnings record 66. 2. A) Both columns contain information about the employer's tax matching responsibilities. A cell phone company offers two different plans. 64. SUTA tax payable 9,481. Purchaseofrentinadvance. During the past week, the employee worked 50 hours. FUTA tax payable 1,322. Fair Labor Standards Act (Federal Wage & Hour Law). Questions pertaining to religion, gender, national origin, or age are allowed on application forms when these are bonafide occupational qualifications for a job. under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. Saleofequipmentforanotereceivable. May an employer terminate an employee for lying on an application form? C) A debit balance will decrease the expenses of the firm's income statement. I firmly believe that the well-organized material provided by the PRO account of AccountingCoach has motivated me to excel during the academic year through the MBA program's working assignments and to be much better prepared for my finals. Payroll registers include all of the information in a pay period for all employees. February 7 Journalize the employer . How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? 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.

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