& \text{ } & \text{ }\\ D) As liabilities A) It may be expressed as assets + liabilities = owners' equity. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. True (California, New Jersey, New York & Rhode Island). Does workers' compensation laws only relate to work-related incidents? DATE DESCRIPTION POST REF. Employees with less than a five year tenure of employment. 17. Employee benefits, flexible administration, business insurance, and retirement plans. On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. The purpose of payroll register is to record of all the payment details for employees during a specific pay period. Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. account: Social Security tax payable ACCOUNT NO. B) Social Security tax, $792; Medicare tax, $204. Gross wages of $500.00 less withholdings of $38.25 for FICA and $87.25 for federal and state income taxes. C) It is a report designed for external stakeholders. PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. expenses Indirect labor usage. 40. 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. Read the latest news, stories, insights and tips to help you ignite the power of your people. A) $399,472. The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries. In this last task, the following steps will be completed. Withholding" and "Earnings subject to FICA"? 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. Compute and record the Kipley Company's SUTA and FUTA contributions. When a firm has wages earned but not yet paid at the end of a financial reporting period, what B) General Journal incomes are, the higher the profitability will be. expenses are, the higher the profitability will be. To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. D) information about the firm's liabilities Wages and salaries-Operating expense-debit The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. 39. The portion of the Federal Insurance Contributions Act that deals with Social Security is called. C) Labor reports An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. 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. Payroll Test #1 Flashcards | Quizlet Subjects Expert solutions Log in Sign up Payroll Test #1 Term 1 / 66 Does every state have state unemployment laws? C. Restrictions the employment of child labor. 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? Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll,one for the employer's share of the taxes. Employers use the employee's earnings record in preparing ___. Plan A costs $80 per month for unlimited talk and text. Any boxes left with a question mark will be automatically graded as Accounting questions and answers. The total of each distribution column shows the total amount of that department's wage expense. 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? The lower the payroll Listed below are several transactions. 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 A) Social Security tax, $204; Medicare tax, $792. 65. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. E. All are provisions of FLSA. 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. Paymentofalong-termnotepayable.13. Which of the following laws establishes the minimum wage? Jeremy is single with two withholding allowances. D) Both documents contain details of employee earnings, deductions, and disbursement for a \text{9. They must disclose to the job applicant that they are seeking an investigative report. Health Insurance $ 950. This will increase account: ACCOUNT Federal withholding tax payable ACCOUNT NO. Verify the date and enter General as the reference. Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? For example, there may be deductions for 401(k) pension plans, health insurance, life insurance, vision insurance, and for the repayment of advances. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases Loantoanotherfirm. Plan B costs$0.20 per minute plus $0.10 per text message sent. 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. Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. Rushing River Boats has the following data in its Social Security tax payable General Ledger (You may select more than one answer. B) It should make a note to create the reversing entry at the end of the next financial period. A) Debit $1, All of these journal entries are noted below. 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. D) It is non-employee labor that the company must pay. What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? Which of the following steps should be taken by the Human Resources Department when hiring new employees? D) The labor report In other words, a payroll register is the document that records all of the details about employees' payroll during a period. Which of the following is not a provision of ERISA? Paymentofanaccountpayable. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . \text{13. Single click the box with the question mark to produce a check mark for a correct Sale of equipment for a note receivable.} 9. We provide payroll, global HCM and outsourcing services in more than 140 countries. C) Debit Health Insurance Payable $13,618; Credit Cash $13,618. D) Federal withholding tax payable The ___ is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period. Sale of equipment for cash.} In Philadelphia, Pennsylvania, most workers are subject to three income taxes upon their earnings - federal state and city. True False. & \text{ } & \text{ }\\ B) Gross pay Which of the following records lists all employees who earn remuneration, the amount of remuneration, the deductions, and the net amount paid for each payroll period? Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? File, adjust, and print returns and reports. Cash 101 117,334. C) Social Security tax, $746; Medicare tax, $174. What special accounts must usually be opened in the general ledger to record payroll tax entries? For classifying the gross wages and salaries according to the nature of the wage and salary expense. E. All of the above are provisions of ERISA. Manage labor costs and compliance with easy time & attendance tools. D. 50 You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. 20XX: Gross pay $ 27,894. Raw materials purchases for cash. At ADP, we believe sports and business both require the right approach. D) 401(k) contributions 57. \text{15. ADP is a better way to work for you and your employees, so everyone can reach their full potential. 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. The key types of payroll journal entries are noted below. Q08. B) $2,572. 11. What are the main kinds of information contained in a payroll register? Copyright 2023 AccountingCoach, LLC. The payroll register needs to record the hours each employee has served in the firm in a day. What portions of an employee's wages are exempt from a federal tax levy. Single click the box with the question mark to produce a DEBIT CREDIT DEBIT CREDIT All nine have large-screen TVs? FICA Taxes Payable-OASDI-liability Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month? See how we help organizations like yours with a wider range of payroll and HR options than any other provider. Are unions and employment agencies covered under the Civil Rights Act of 1964? in its Federal withholding tax payable account. A cell phone company offers two different plans. & \text{ } & \text{ }\\ Access the definitive source for exclusive data-driven insights on todays working world. I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) 62. Age Want more exclusive business insights like this delivered to your inbox? Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? C) Employee signature According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? Yes, Employees FIT Payable . Payroll registers generally are more detailed than payroll journals and include specific information about each employee. Paymentofemployeesalaries.OCO2. What is true about the trial balance? A) It must credit the asset accounts for the appropriate payroll amounts. Issuanceofcommonstock. From recruitment to retirement, getting the very best out of your people. A. May 14 Wages and salaries payable 226 117,334. Transaction1. ADP hires in over 26 countries around the world for a variety of amazing careers. Medicare tax payable 222 ??? lf an investigative consumer report is used in an employment decision, does the employer need to tell the individual? How does the FIFO method different from the weighted-average method? The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. Time worked - regular & overtime 7. Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. What is your sisters total cost under each of the two plans? Jun 23 Wages and. Purchaseofrentinadvance.4. Quickly connect ADP solutions to popular software, ERPs and other HR systems. During the past week, the employee worked 50 hours. A payroll register can also . True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial Hours worked. A) the firm's payroll checking account information Why does company profitability decrease in direct proportion to the payroll expenses? D) Employee pay recording and employer share payroll taxes recording View the full answer. That's why we've partnered with some of the top athletes in the world. posted an additional $4,390 on its October 31 pay date. C) the name of the firm and the payroll accountant C) SUTA 2. Which of the following is true about the fundamental accounting equation? C) Debit Revenue, $250,000; Credit Cash, $250, At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. question mark Will be automatically graded as incorrect.) B) It facilitates accuracy in employee payroll tax computations. Under the U.S. payroll tax a employee has to pay the tax on hi . & \text{ } & \text{ }\\ E. 65, Which of the following is not a provision of the Fair Labor Standards Act? a. Walsh-Healey Public Contracts Act A) The total of the debits must equal the total of the credits. c. More than five have large-screen TVs? and year-to- date earnings. 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. 1. on taxes like FICA, FUTA, and SUTA? Workers' Commpensation Insurance Expense-Operating expense Copyright Social Security tax payable ??? Color Gross pay and net pay. An employer has computed the following amounts for its employee Mary during a week in January: gross wages $500.00; FICA tax withheld $38.25; federal income tax withholding $67.25; State income tax withholding $20.00; unemployment taxes $24.00; worker compensation insurance $5.00. pay date. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? Safe-guards your retirement plans *not required to have a pension plan. Form W-2 Vacaction Benefits Payable- liability. Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). B) $15,298. The Federal Insurance Contributions Act covers restrictions on the employment of child labor. Can employees view documents in their files that are marked confidential? the payroll register, employees' earning record, and accounting system entries the purpose of the net pay and check number columns in the payroll register is to Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew My Library Discovery Institutions Silver Creek High School (Colorado) Southern New Hampshire University 1. False. D) Form 941 Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? 60. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Any Boxes left with a question mark will be automatically graded as incorrect.) B. Saleofequipmentforanotereceivable.10. ERISA ensures that workers covered by private pension plans receive benefits from those plans in accordance with their credited years of service with their employers. \text{3. What information is commonly provided by a job-seeker on the application for employment form? Discover the latest Today at Work insights from the ADP Research Institute. automatically graded as incorrect.) It's useful for record-keeping in a business and has legal implications if not kept correctly.. A summary of all payroll activity is an excellent way to look at the payroll register report. To rule the payroll register means that the payroll accountant establishes procedures about the payroll register. Purchaseofinventory.7. SUTA Taxes Payable-liability The W-2 provides all of the information required by the Affordable Care Act. \text{10. What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? 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? ls the Federal Government covered under the Civil Rights Act of 1964? the total expenses of the firm and increase the net income of the firm. 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? In what order are accounts presented on the trial balance? * A payroll register does not include: Multiple Choice Pay period dates. A) Employee pay accrual and employee pay disbursement accurate disbursal of payroll. This account would be credited for the amount paid. 2. Issuanceofbonds. 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. C) $1,715. D. Requires equal pay for equal work, regardless of gender. What is meant by the garnishment of wages? The amounts needed for the payroll entries in the journal come from the employee's earning records. How does the payroll register connect with the employees' earnings records? A. Which of the following represents the missing Social Security and Medicare taxes, assuming that. \end{matrix} 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? The ________ is the master document that contains an employee's marital status, deductions, It records payroll record on each employee separately. 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? Union Dues payable 227 4,683. Indirect materials usage. Multiple Choice. Does every state have both federal and state unemployment laws? Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. Are FICA taxes levied upon employers only? Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. : an American History (Eric Foner), Psychology (David G. Myers; C. Nathan DeWall), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), The Methodology of the Social Sciences (Max Weber), the payroll register, employees' earning record, and accounting system entries, Chapter 5 quiz - employee net pay and pay methods, compute social security and medicare tax withholding, Chapter 4 quiz - fringe benefits and voluntary deductions, different between pre-tax and post-tax, Lab Calendar [CHEM 2551-HYB01] Spring 2021, Chapter 6 quiz - employer payroll taxes and labor planning, Conic Sections - Lecture notes Chapter 6 Notes, Emotional and Cultural Intelligence (D082), Introduction To Computer And Information Security (ITO 310), Professional Application in Service Learning I (LDR-461), Advanced Anatomy & Physiology for Health Professions (NUR 4904), Principles Of Environmental Science (ENV 100), Operating Systems 2 (proctored course) (CS 3307), Comparative Programming Languages (CS 4402), Business Core Capstone: An Integrated Application (D083), Bates Test questions The Thorax and Lungs, Student-HTN-Atherosclerosis Unfolding Reasoning, ATI System Disorder Template Heart Failure, Lesson 17 Types of Lava and the Features They Form, Wong s Essentials of Pediatric Nursing 11th Edition Hockenberry Rodgers Wilson Test Bank, Test Out Lab Sim 2.2.6 Practice Questions, The tenpoint plan of the new world order-1, Piling Larang Akademik 12 Q1 Mod4 Pagsulat Ng Memorandum Adyenda at Katitikan ng Pulong ver3, The cell Anatomy and division. Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. A) $2,253. Payroll journals are records of all payroll transactions. FICA Taxes payable-HI-liability account: Social Security tax payable ACCOUNT NO. Oct 27 Wages and salaries payable 226 202,671. B) Credit $1, D) General journal numbers ERISA provides for full vesting of the employer's contributions in three years or gradually over six. False - also needs to be a reasonable amount. 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. C) Alphabetically 63. A) Both columns contain information about the employer's tax matching responsibilities. Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? Single click the box with the question A) Form W- \text{8. 6. C) It is non-traceable labor that a company must absorb as overhead. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. At ADP, security is integral to our products, our business processes and our infrastructure. B. ERISA requires each employer to establish a pension plan. d. At least seven homes have large-screen TVs? Learn how we can make a difference by joining forces to improve the success of the clients we share. This will decrease 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. in sin did my mother conceived me meaning 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. A) The income statement Issuanceofcommonstock.6. 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. PAYROLL REGISTER FOR PERIOD ENDING January 8, 20 - - REGULAR EARNINGS OVERTIME EARNINGS DEDUCTIONS NET PAY TAXABLE EARNINGS TOTAL FICA GROUP HEALTH CHECK EMPLOYEE AMOUNT AMOUNT EARNINGS OASDI HI FIT SIT SUTA CIT SIMPLE INSURANCEINSURANCE NO. Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. For the entry on January 31, what does the J4 signify? True, In the General Ledger, the debit column reflects the balance of the account. BALANCE DATE DESCRIPTION POST REF. How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. D) The balance sheet What is the primary purpose of a labor report? A) Employee earnings record All earnings are taxable. These entries are then incorporated into an entity's financial statements through the general ledger. The Age Discrimination in Employment Act provides protection to virtually all workers over the age of: Form I-9, which is completed by each employee, deals with: Which of the following acts deals with the minimum wage paid to laborers for contractors on federal government construction contracts? Purchase of rent in advance.} With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. To prepare period reports and complete Form W-2 for each employee, Fundamentals of Financial Management, Concise Edition, Operations Management: Sustainability and Supply Chain Management, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Single click True, The information in the payroll register forms the basis for entries in the Employee Earnings Does the ADEA quit protecting employees after the age of 70? Federal withholding tax $ 3,570. D) $1,875. Discover a wealth of knowledge to help you tackle payroll, HR and benefits, and compliance. Saleofequipmentforanotereceivable. 33. Exempt salaried employees are often paid for their work right up to payday. Hence, no need to accrue any salaries. 29. You face specific challenges that require solutions based on experience. box for a wrong Answer. Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. All salaried employees. 15. below deck mediterranean 2022 cast. This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. chronologically. Federal withholding tax payable 220 $ 50,725. Total Earnings 9. B. Purchaseoftreasurystock. (You may select more than one answer. Department of branch 4. Purchaseofrentinadvance. Employee SIT Payable-liability Loan to another firm.} Besides payroll information, the payroll register contains ________. Find payroll and retirement calculators, plus tax and compliance resources.