Quickly connect ADP solutions to popular software, ERPs and other HR systems. SUTA tax payable 9,481. 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. B) Employee earnings record Health Insurance payable 224 8,375. Jan 31 J4 420 1, Social Security tax payable 221 10,517. May an employer terminate an employee for lying on an application form? e. None of the above. Name of each employee 5. D) It is a report designed to be read by parties external to the firm. A payroll register does not include: Multiple Choice Pay period dates. A) Medicare tax C) SUTA What are the General Journal entries that should appear on each pay date? expenses are, the lower the profitability will be. Medicare tax payable 3,197. B) General Journal \text{13. A) Net pay expenses Paymentofanaccountpayable.15. & \text{O} & \text{CO}\\ Sale of equipment for a note receivable.} Which of the following is not a provision of FLSA? the box With the question mark to empty the box for a wrong answer. Union Dues payable 227 4,683. 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. This entry may be avoided if the amount is immaterial. An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. D) Credit $30. D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? 2. C) Cross-referencing This account would be credited for the amount paid. Which act sets the minimum wage, and what is the current wage rate? Saleofequipmentforanotereceivable. What is the purpose of the Age Discrimination in Employment Act (ADEA)? Garnishment $ 450. NAME MARITAL STAT. What does the Civil Rights Act of 1954 cover? C) Employee pay disbursement and voluntary deduction remittance 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. Jan 19 Wages and salaries payable 226 8,134. Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. How might globalists and traditionalists view cultures, places, and regions differently. (You may select more than one answer. When the employer pays the employee in 2023 for the vacation earned in 2022, what account will the company debit? The payroll register contains ________. 63. B) Debit $4, 220 C. All employees under the age of 30. 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. Indirect labor usage. 221 ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. 21 Sale of land for cash.} B. All earnings are taxable. Comprehensive payroll and HR software solutions. Which of the following is NOT part of the social security program? 1. Zipperle Company has the following payroll information for the pay period ending September 18, 8. What must the employer do with unclaimed checks. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Read more about the author. total What is the current minimum wage under FLSA? 2. 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. Federal withholding tax payable 220 $ ??? Only "A payroll register" and "The employee's earnings record" are correct. A) It communicates departmental profitability. Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? Which of the following reports links the accounting and the human resources departments? What special accounts must usually be opened in the general ledger to record payroll tax entries? Cash 101 202,671. 10. Net pay $ 19,747. 6. 58. d. At least seven homes have large-screen TVs? May criminal background checks be used by all employers for any person? Can employees view documents in their files that are marked confidential? Requirements: 1. Does FLSA require all employees to be paid weekly, biweekly', monthly? 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). True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial The W-2 provides all of the information required by the Affordable Care Act. The Federal Insurance Contributions Act covers restrictions on the employment of child labor. C) Employee signature C) As expenses 31. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Federal income tax payable 11,955. What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? You can enter a formula into a cell manually (typing it in) or by pointing to the cells. Are FICA taxes levied upon employers only? Dont take our word for it. 401(k) contributions $ 1,115. D) Personnel file (You may select more than one answer. B) It allows managers to predict future labor costs. A. & \text{ } & \text{ }\\ Federal withholding tax payable 220 $ 2,207. See how we help organizations like yours with a wider range of payroll and HR options than any other provider. Complete the steps outlined below: 1. B) It facilitates accuracy in employee payroll tax computations. FUTA was designed to ensure that workers who are covered by pension plans receive benefits from those plans, Under ERISA, vesting conveys to employees the right to share in a retirement fund in the event they are terminated before the normal retirement age, Under ERISA, if there is a pension plan, every employee is eligible after reaching age 21 or completing one year of service, whichever is later, ERISA provides for full vesting of the employer's contributions in 3 years or gradually over 6, The total cost of workers' compensation insurance is borne by the employees, Worker's compensation insurance premiums for employers vary according to the different degrees of danger in various classes of jobs and the employers' accident experience rate, Workers' compensation benefits are paid directly to the employer, Only one state has passed a law to provide disability benefits to employees absent from their jobs due to illness, accident, or disease not arising out of their employment, The requisition for personnel form is sent to the Payroll Dept. 18. What is the role of enhancing qualities in the conceptual framework? For fill-in-the-blank questions, press or click on the blank space provided. 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? What information is commonly provided by a job-seeker on the application for employment form? A) Revenue This information is also reflected in summary level entries in the businesss general ledger. 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. * A) Ledgering 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. Compute and record the employee's SUTA contributions. D. ERISA provides that all employees are eligible to set up their own individual retirement accounts. accurate disbursal of payroll. 1. During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. A) Employee earnings record D) the employee's name, social security number, and address Why does company profitability decrease in direct proportion to the payroll expenses? The payroll register of any firm needs to have specific details on every employee. The employees gross wages for the past week are. D) One side of the equation must equal zero. Use the following information for Questions 15 - 17: Current period taxable earnings for FICA taxes are as. C) Labor reports Which of the following laws establishes the minimum wage? C) Because payroll represents a liability and an expense of the business. Payment of a long-term note payable.} C) It is a worksheet that accountants use to ensure payroll accuracy. D) Transcribing a. Walsh-Healey Public Contracts Act A) $399,472. A payroll register can also . one answer. 65. Fair Labor Standards Act 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. B) $2,572. At December 31, 2022 the employee's pay rate was $15. False. Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. 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. Issuanceofcommonstock. What are the General Journal entries that should appear on each pay date? Read the latest news, stories, insights and tips to help you ignite the power of your people. account: ACCOUNT Federal withholding tax payable ACCOUNT NO. 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. Payment of employee salaries.} D) It must wait until the next financial period to record the payroll data. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . C) $1,715. C) Labor reports Saleofequipmentforanotereceivable. To prohibit discrimination on the basis of age in the employment practices of employer. The town is considering an ordinance that would prohibit putting D) It is non-employee labor that the company must pay. D) The same as the chart of accounts Saleofequipmentforanotereceivable.10. 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. ADP hires in over 26 countries around the world for a variety of amazing careers. 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? Issuanceofbonds.11. Withholding" and "Earnings subject to FICA"? Want more exclusive business insights like this delivered to your inbox? 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. Single click But if you follow these seven steps, you can learn how to account for payroll with ease. \text{10. 59. 2. Learn how we can make a difference by joining forces to improve the success of the clients we share. question mark Will be automatically graded as incorrect.) Information available through a secured web sit, kiosk, or interactive voice response system. Paymentofanaccountpayable. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. Social Security tax $ 1,670. account: Social Security tax payable ACCOUNT NO. Employers use the employee's earnings record in preparing ___. Multiple Choice. 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. A) Employee pay accrual and employee pay disbursement HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. A) Because payroll represents an asset and an income of the business. The tax payers standard deduction and the personal exemptions ($3,650) allowed for the tax year divided by the number of ay periods in the year. Sets minimum wage. D) Company website A) Employee earnings record A. Discover a wealth of knowledge to help you tackle payroll, HR and benefits, and compliance. Keeping vital payroll data up to date and easily accessible is essential for employers to address unexpected discrepancies without confusion. \text{3. BALANCE Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). Issuance of common stock.} The key types of payroll journal entries are noted below. Legalor equitable procedure by which a protion of the wages of any person must be withheld for payment of a debt. The payroll register needs to record the hours each employee has served in the firm in a day. DEBIT CREDIT DEBIT CREDIT D) Form 941 Learn how we can make your work easier. Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). E. All of the above are provisions of ERISA. True False. 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. In what order are accounts presented on the trial balance? Questions pertaining to religion, gender, national origin, or age are allowed on application forms when these are bonafide occupational qualifications for a job. All salaried employees. \text{12. A. ADEA Which of the following is true about the fundamental accounting equation? each option. On which financial report will employer-paid portions of health insurance premiums be listed? This account is credited for the total amount of FIT with held each payday and is subsequently debited for the amounts paid to a depositary or to the IRS. 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. Purchase of inventory.} 4. Copyright 2023 AccountingCoach, LLC. These liabilities accompany every payroll you run. The total of each distribution column shows the total amount of that department's wage expense. B. < Prey 18 of 40 Pay period dates. expenses are, the higher the profitability will be. 33. 6. They must disclose to the job applicant that they are seeking an investigative report. Use the following information for Questions 19 - 20: B) A debit balance will increase the expenses of the firm's income statement. 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. B) Employee pay remittance and voluntary deduction remittance 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 Paymentofalong-termnotepayable.13. B) The labor report, C) The statement of owners' equity It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. Does every state have both federal and state unemployment laws? Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. A) It is employee labor that may be billed to customers. 28. At ADP, security is integral to our products, our business processes and our infrastructure. D) It adds complexity to the payroll register. mark to produce a Check mark for a correct answer and double click the box with the question check mark For a correct answer and double click the box with the question mark to empty the C) $12,576. Direct materials usage. Sometimes you will see all the taxes lumped together into one account called Payroll Taxes Payable. in sin did my mother conceived me meaning B) Because payroll represents an asset and an income of the business. & \text{ } & \text{ }\\ 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. What are the enhancing qualities of the qualitative characteristics? Collectionofanaccountreceivable.5. Collection of notes receivable.} The primary payroll journal entry is for the initial recordation of a payroll. C) It is a report designed for external stakeholders. Marital status & number of withholding allowances 6. A) Form W- From best practices to advice and HR consulting. C. Restrictions the employment of child labor. The higher payroll & \text{ } & \text{ }\\ CH2 Payroll Acounting CHAPTER 2 Learning Objectives After studying this chapter, students should be able to: 1. c. McNamara-O'Hara Service Contract Act DEBIT CREDIT DEBIT CREDIT A) As assets Manage labor costs and compliance with easy time & attendance tools. The Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. D) Social Security tax, $188; Medicare tax, $805. Paymentofemployeesalaries.2. Discover how easy and intuitive it is to use our solutions. must it do to recognize the liabilities and expenses? A well-kept payroll register is also useful when preparing payroll tax reports, including: A payroll register is a record of payroll information for every employee each pay period. expense 522 $ 182,930. A payroll register lists all basic information related to employee take-home pay. Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. A) A debit balance will increase the expenses of the firm's income statement. 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. 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--. 1. 40. Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. Click here to learn more. & \text{ } & \text{ }\\ A) It is a list of all persons and companies that the company pays money during a period. Oct 27 Wages and salaries payable 226 202,671. Laborers for contractors who furnish materials, supplies, articles, and equipment to any agency of the United States, provided the minimum contract amount is $10,000. 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
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