Savings bonds payable 227 1,850. 9. C) Labor reports Complete the steps outlined below: 1. You need to purchase a plan for your teenage sister. D) Payroll register Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). B) It is an individual register maintained for each employee, listing of all the payroll information. DEBIT CREDIT DEBIT CREDIT C) Debit Revenue, $250,000; Credit Cash, $250, The company does not provide health insurance, paid vacations, or any other benefits. Learn more about the senior executives who are leading ADPs business. incomes are, the higher the profitability will be. (You may select more than Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. $3,825 of employee withholding ($50,000 X 0.0765), Exempt Salaried Employees Paid Semi-monthly. B) General Journal B. In what order are accounts presented on the trial balance? A) The income statement Multiple Choice. 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? Paymentofincometaxes. What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? 60. The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. mark to empty the box For a wrong answer. Rushing River Boats has the following data in its Social Security tax payable General Ledger C) A debit balance will decrease the expenses of the firm's income statement. 5. BALANCE & \text{ } & \text{ }\\ A payroll register is the record for a pay period that lists employee hours worked, gross pay, net pay, deductions, and payroll date. The Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. When the firm remits its health insurance premium for this pay date, what is the General Journal What is the purpose of the Age Discrimination in Employment Act (ADEA)? Payroll journals are records of all payroll transactions. \text{2. Using the payroll register, compute the employee gross pay and net pay using 35 hours as the standard workweek for all employees except Mary Shangraw, who works 20 hours per week and receives overtime for any time worked past that point. Manage labor costs and compliance with easy time & attendance tools. 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. These details include the employee id number, the department they belong, their job profile, etc. 66. Which of the following is an example of a trade association? 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). 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 7. Identify distinctive compensation plans. mark for a correct Answer and double click the box with the question mark to empty the box for lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? The ___ is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period. Attend webinars or find out where and when we can connect at in-person events. Authorize a power of attorney. Feb 15 J & \text{ } & \text{ }\\ 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? 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. View the full answer. \text{1. & \text{ } & \text{ }\\ The amounts needed for the payroll entries in the journal come from the employee's earning records. Cash 101 202,671. Plan A costs $80 per month for unlimited talk and text. Requirements: 1. under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. Deductions. A. Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. Define hours worked. Entitled to retirement program even if you're no longer working there. Explain the major provisions of the Fair Labor Standards Act. SUTA Taxes Payable-liability \text{14. How are the funds used which are provided by FUTA and SUTA? & \text{ } & \text{ }\\ C) It must remain in balance at all times. Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. It records payroll record on each employee separately. 401(k) contributions $ 1,115. so that the new employee can be properly added to the payroll, Employment application forms are usually discarded when the applicant is hired. Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. C) It is a report designed for external stakeholders. Which items would be debited in the General Journal entry to record the employees' share of A) Revenue Which of the following acts prohibits discriminating in hiring, firing, promoting, compensating, or in nay other condition of employment on the basis of race, color, religion, gender, or national origin? Assume that the company uses the accrual method of accounting. 14. Under the U.S. payroll tax a employee has to pay the tax on hi . Who are the winners and who are the losers when the minimum wage is increased? False, Two complete payroll-related General Journal entries are recorded each pay period: one for the 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. & \text{ } & \text{ }\\ 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. 34. 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. BALANCE DATE DESCRIPTION POST REF. Multiple Choice Q05 True, In the General Ledger, the debit column reflects the balance of the account. Use the following information for Questions 19 - 20: What are the main kinds of information contained in a payroll register? False - also needs to be a reasonable amount. A) Both columns contain information about the employer's tax matching responsibilities. 1. 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. 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. Wages Payable-liability D) It is a report designed to be read by parties external to the firm. An employee is hired at a pay rate of $10 per hour. Click here to learn more. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. Oct 27 Wages and salaries payable 226 202,671. Pre-hire questions pertaining to religion, gender, national origin, or age are allowed if: Which of the following forms is used to notify the Payroll Department to add a new employee to the payroll? Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? C. FLSA Saleofequipmentforcash. Form W-2 221 Sale and delivery of finished goods to customers for cash (record unadjusted cost of sales). Saleofequipmentforanotereceivable. B. ERISA requires each employer to establish a pension plan. 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. D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 Any boxes left with a question mark will be A) As assets 53. tax Remittance on February 15? At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. Collection of notes receivable.} D) It is a report that becomes published with other financial reports. D) 401(k) contributions When the employer pays the employee in 2023 for the vacation earned in 2022, what account will the company debit? Saleoflandforcash.3. D) One side of the equation must equal zero. D) Company website Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. Payroll Chapter 1 Flashcards | Quizlet Payroll Chapter 1 5.0 (5 reviews) Term 1 / 50 True Click the card to flip Definition 1 / 50 The current minimum wage set by the Fair Labor Standards Act is $7.25 per hour Click the card to flip Flashcards Learn Test Match Created by kittykiss Terms in this set (50) True Get exclusive business insights delivered straight to your inbox. C. 40 27. How does the FIFO method different from the weighted-average method? Collectionofanaccountreceivable. C) It allows payroll employees to divert funds into faux accounts. Purchase of treasury stock.} You face specific challenges that require solutions based on experience. See how we help organizations like yours with a wider range of payroll and HR options than any other provider. Paymentofalong-termnotepayable. Use the information in the previous exercise to prepare journal entries for the following events in May. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. \text{6. Federal withholding tax payable 220 $ 50,725. Safe-guards your retirement plans *not required to have a pension plan. D. 50 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 57. 54. Payment of income taxes.} It lists payroll information about each employee, such as hours worked, gross pay, deductionsand net pay. C) proof of payroll deposits The payroll register of any firm needs to have specific details on every employee. Name of each employee 5. Didier and Sons had the following employer's share payroll tax general journal entry for the May Since Eco Brewers is a monthly schedule Health Insurance Premiums Collected-liability D) The transaction appears on page four of the General Journal. 3. 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. Which of the following laws establishes the minimum wage? Paymentofemployeesalaries.2. According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? A) Ledgering Federal income tax payable 11,955. 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. How do the Stanford-Binet and Wechsler tests differ? 3. Indirect materials usage. What is your sisters total cost under each of the two plans? 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. What portions of an employee's wages are exempt from a federal tax levy. These computations are shown in the Employee Payroll Register. the box With the question mark to empty the box for a wrong answer. 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. C) As expenses A. Wages and salaries payable 226 ??? A) It allows managers to determine the effect of employee labor on departmental profits. FICA (Federal Insurance Contributions Act). & \text{ } & \text{ }\\ Under FMLA, may employers exempt the highest paid 10 percent of the workforce? D) information about the firm's liabilities 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. date: Oct 27 Wages and salaries expense 522 $298,384. B) Payroll register A. ADEA A) It may be expressed as assets + liabilities = owners' equity. 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? expense 522 $ 182,930. \text{9. 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. Application of overhead to goods in process. Which of the following steps should be taken by the Human Resources Department when hiring new employees? automatically graded as incorrect.) What is the amount of the Social Security tax payable? the payroll? 55. At December 31, 2022 the employee's pay rate was $15. Wages and salaries payable 226 117,334. 5. Why is it important to have columns on the payroll register title "Earnings subject to Federal D) It adds complexity to the payroll register. 1. 5. A payroll register can also . ordinance is passed? C) The balance sheet Wages and salaries-Operating expense-debit Paymentofincometaxes.9. 3. Correct answer: Option (1) Medicare tax is the correct answer. FUTA Taxes Payable-liability Find payroll and retirement calculators, plus tax and compliance resources. Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO. in sin did my mother conceived me meaning \text{4. $y = -x - 4$. account: ACCOUNT Federal withholding tax payable ACCOUNT NO. As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $14, Administrating the state unemployment taxes. Which of the following represents the missing Social Security and Medicare taxes, assuming that. The key types of payroll journal entries are noted below. Payroll registers include all of the information in a pay period for all employees. D) Form 941 7. B) FUTA 4. The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. Which of the following is not a provision of ERISA? 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. DATE DESCRIPTION POST REF. A) The total of the debits must equal the total of the credits. chronologically. Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. pay date. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do Small, midsized or large, your business has unique needs, from technology to support and everything in between. Enchanted Creations has the following data in its Federal withholding tax payable General Ledger Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) Plan B costs$0.20 per minute plus $0.10 per text message sent. ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. & \text{ } & \text{ }\\ E. All of the above are provisions of ERISA. Jun 23 Wages and. 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 Compute and record the employee's SUTA contributions. Want to read all 11 pages? HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. 2. 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. Its easier to keep accurate payroll records and run reports quickly with payroll software. B) It depicts the ideal distribution of labor in a firm. D) Debit Health Insurance Payable $27,237; Credit Cash $27,237. Copyright 2023 AccountingCoach, LLC. Issuanceofbonds.11. What entry should appear in the General Ledger to reflect the It The ________ is the master document that contains an employee's marital status, deductions, A) Debit $1, Allocation (closing) of overapplied or underapplied overhead to Cost of Goods Sold. 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.