Explain the use of the "Cumulative" column in the employee's earnings record. D. Religion B. What entry should appear in the General Ledger to reflect the Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. Not only will this make it easier for you to pay your taxes and do payroll reconciliation, but it also allows employees to better understand their finances. D) The same as the chart of accounts 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. answer And double click the box with the question mark to empty the box for a wrong answer. Total Earnings 9. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? account: Social Security tax payable ACCOUNT NO. 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. Payroll-Operating expense-liability 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 What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. 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. C) Payroll accounts do not appear on the trial balance because of their changeable nature. How do accrued, but not paid, wages appear on the balance sheet? False - also needs to be a reasonable amount. ls the payroll register used in preparing the Form W-2? Payroll registers show employers just how much money they need to set aside for payroll expenses, such as the following: In the event of an audit, these records of payroll expenses can help make the process as pain-free as possible. E. OASDI. select more than one answer. 64. A. ERISA applies to pension and welfare plans established by any employer engages in commerce. A) It should create a reminder about the accrual to ensure accuracy of computations on the next Besides payroll information, the payroll register contains ________. BALANCE DATE DESCRIPTION POST REF. D) the employee's name, social security number, and address \text{5. 5. Hours worked. accurate disbursal of payroll. Gross pay and net pay. on taxes like FICA, FUTA, and SUTA? C) Labor reports C) proof of payroll deposits 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 c. More than five have large-screen TVs? Department of branch 4. 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. Basic payroll register templates can be found online or created in programs like Excel. chronologically. May criminal background checks be used by all employers for any person? B. ERISA Compute and record the employee's SUTA contributions. 34. account: Social Security tax payable ACCOUNT NO. A) Debit $1, D) It must wait until the next financial period to record the payroll data. For fill-in-the-blank questions, press or click on the blank space provided. in its Federal withholding tax payable account. Under FMLA, may employers exempt the highest paid 10 percent of the workforce? expense 522 $ 182,930. Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. Single click The employees gross wages for the past week are. Which basic records are generated in most payroll accounting systems? How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. The Federal Insurance Contributions Act covers restrictions on the employment of child labor. Vacation Benefits Expense-Operating expense The total of each distribution column shows the total amount of that department's wage expense. A) Worker's Compensation Read more about the author. When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger. b. At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. Jan 19 Wages and salaries payable 226 8,134. Since Eco Brewers is a monthly schedule Yes, Employees FIT Payable . What is the Its easier to keep accurate payroll records and run reports quickly with payroll software. At ADP, security is integral to our products, our business processes and our infrastructure. During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. 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. Can employees view documents in their files that are marked confidential? D) Debit Health Insurance Payable $27,237; Credit Cash $27,237. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? The Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. Regardless of the format, payroll registers tend to follow the same basic structure. D) The transaction appears on page four of the General Journal. Of the items in the following list, which one (s) should appear in a payroll register? Only "A payroll register" and "The employee's earnings record" are correct. Collection of an account receivable.} lf an investigative consumer report is used in an employment decision, does the employer need to tell the individual? What is the current minimum wage under FLSA? An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. McHale Enterprises has the following incomplete General Journal entry for the most recent pay Workers' compensation insurance premiums are paid for by the employees, Workers' compensation insurance premiums vary according to the different degrees of danger in the employees' jobs. date: Oct 27 Wages and salaries expense 522 $298,384. B) Equity Health Insurance payable 224 8,375. Listed below are several transactions. < Prey 18 of 40 Pay period dates. 63. U.S. government T-bills account for 45%45 \%45% of the portfolio, large-company stocks constitute another 40%40 \%40%, and small-company stocks make up the remaining 15%15 \%15%. \text{1. Employers can exempt the following employees from the Family and Medical Leave Act. \text{Transaction} & \text{Type of Activity} & \text{Cash Inflow or Outflow}\\ \hline 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. Keeping vital payroll data up to date and easily accessible is essential for employers to address unexpected discrepancies without confusion. D) A debit balance will increase the income of the firm's income statement. Book the entry on the date paychecks are distributed. 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. \text{6. Todays digital landscape means limitless possibilities, and also complex security risks and threats. 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. Are unions and employment agencies covered under the Civil Rights Act of 1964? Paymentofalong-termnotepayable.13. D) One side of the equation must equal zero. Jan 31 J4 420 1, This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. Entitled to retirement program even if you're no longer working there. depositor, what entry Should appear on November 15 for the remittance of the month's Social Another important step in maintaining a payroll register is to perform audits. C) It is a worksheet that accountants use to ensure payroll accuracy. B) $2,572. 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. D) It is a report designed to be read by parties external to the firm. Payment of income taxes.} In this last task, the following steps will be completed. D) information about the firm's liabilities D) As liabilities Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? 57. 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. A. Under FMLA, the time must be used in one uninterrupted period of time. 5. Enchanted Creations has the following data in its Federal withholding tax payable General Ledger & \text{ } & \text{ }\\ C) SUTA 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? 3. 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. A) Employee pay accrual and employee pay disbursement 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. the health Insurance is qualified under Section 125? Security taxes? Which items would be debited in the General Journal entry to record the employees' share of \text{13. B. ERISA requires each employer to establish a pension plan. What is your sisters total cost under each of the two plans? There may be an accrued wages entry that is recorded at the end of each accounting period, and which is intended to record the amount of wages owed to employees but not yet paid. Every state imposes a state unemployment tax on employers in their state. 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. & \text{ } & \text{ }\\ 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. Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? D. 50 29. Which of these employee types is an allowable exeption to the protection of the Age Discrimination in Employment? Verify the date and enter General as the reference. The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. Age Transfer of finished jobs to the finished goods inventory. They must disclose to the job applicant that they are seeking an investigative report. 40. Requirements: 1. Correct answer: Option (1) Medicare tax is the correct answer. B) $15,298. Loantoanotherfirm.12. Payroll Register This is the first task to completing Olney Company's payroll register. Health Insurance Premiums Collected-liability Saleoflandforcash. C) It is the fourth repetition of the same entry. \text{8. 4. total The employee's earnings records is used in preparing the employees' W-2 forms. Manage labor costs and compliance with easy time & attendance tools. Employers also use it to: While all of these functions can be accomplished manually, dedicated payroll software provides information at the click of a button, making reporting fast and simple. Paymentofincometaxes. At a minimum, payroll registers help businesses: But thats hardly the extent of how beneficial a payroll register can be. The higher payroll Apr 16 J23 16,495 32. ADP hires in over 26 countries around the world for a variety of amazing careers. On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. & \text{ } & \text{ }\\ C) A debit balance will decrease the expenses of the firm's income statement. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). A) The statement of owners' equity 61. 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. Record the health insurance deduction. Make payments. C) It designates where labor is used in a firm. 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. What is meant by the garnishment of wages? Learn how we can make a difference by joining forces to improve the success of the clients we share. Union Dues payable 227 4,683. Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. 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. \text{2. Which of the following represents the missing Social Security and Medicare taxes, assuming that. In a sample of nine homes, what is the probability that: a. Paymentofemployeesalaries.OCO2. In January 2023 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2022. 13. 401(k) contributions payable 223 ??? & \text{ } & \text{ }\\ As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $14, 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. period. DATE DESCRIPTION POST REF. 4. 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. pay date. the total expenses of the firm and decrease the net income of the firm. B) By dollar amount Type the formula, then press Enter. 2. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. 5. C) It is a report designed for external stakeholders. Assume that the company uses the accrual method of accounting. entry? PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial 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. C) It is non-traceable labor that a company must absorb as overhead. C) Employee earnings record A) It communicates departmental profitability. The lower payroll Issuanceofcommonstock. expenses are, the higher the profitability will be. Cash 101 202,671. Saleofequipmentforcash. 401(k) contributions payable 223 454. 15. February 7 Journalize the employer . D) Transcribing c. McNamara-O'Hara Service Contract Act C) Form W- A payroll liability can include wages an employee earned but has not yet received, taxes withheld from employees, and other payroll-related costs. Identify distinctive compensation plans. Payroll registers are typically a series ofsimple charts (one for each employee during a given pay period) that include such information as: Note that payroll recordkeeping laws differ across jurisdictions. The highest-paid 10 percent of their workforce. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . E. 65, Which of the following is not a provision of the Fair Labor Standards Act? It Any Boxes left with a question mark will be automatically graded as incorrect.) What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000? Does the ADEA quit protecting employees after the age of 70? False, The General Journal contains records of a firm's financial transactions, which appear True, Employee earnings records form the link between accounting and the human resources 3. Payroll registers include all of the information in a pay period for all employees. 3. Exempt salaried employees are often paid for their work right up to payday. 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? 2. But if you follow these seven steps, you can learn how to account for payroll with ease. Any boxes Left with a question mark will be automatically graded as incorrect.) A cell phone company offers two different plans. Medicare tax payable 3,197. How can the information shown in the employees' earnings record be used? Records and the General Journal. See Answer. Sets minimum wage. From recruitment to retirement, getting the very best out of your people. Why is it important to have columns on the payroll register title "Earnings subject to Federal Less than five have large-screen TVs? & \text{ } & \text{ }\\ 41. & \text{O} & \text{CO}\\ Purchase of rent in advance.} 14. Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. 56. A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? All of these journal entries are noted below. How might globalists and traditionalists view cultures, places, and regions differently. A) It is employee labor that may be billed to customers. At ADP, we believe sports and business both require the right approach. 3. What options might Hazel consider if the Federal withholding tax payable 220 $ ??? True, A debit always decreases the balance of an account. D) $1,875. 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. What are the enhancing qualities of the qualitative characteristics? At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA? Discover the latest Today at Work insights from the ADP Research Institute. This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. 9. automatically graded as incorrect.) B. ERISA requires each employer to establish a pension plan. Multiple Choice. To rule the payroll register means that the payroll accountant establishes procedures about the payroll register. D) Company website 16. 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. The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. C. Restrictions the employment of child labor. A magnifying glass. Medicare tax $ 390. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases The primary payroll journal entry is for the initial recordation of a payroll. HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. That's why we've partnered with some of the top athletes in the world. What is the term for transferring data from the General Journal to the General Ledger? \text{10. Purchase of treasury stock.} Prior year's earnings < Prev 18 of 40 . Wages Payable-liability Which of the following is NOT part of the social security program? 221 \text{11. A) Revenue Answer : Option E, Prior Years Earnings Explanat . The entry to record vacations earned in 2022 will affect Vacation Expense on the 2022 income statement and Vacation Payable, a liability on the 2022 balance sheet. 10. 53. 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. (You may select more than one answer. A) Employee pay accrual and employee pay disbursement On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. D. ERISA provides that all employees are eligible to set up their own individual retirement accounts. B) tax remittance information 30. The other hourly employees receive overtime pay when they work more than 35 hours in one week. A) Form W- View notices and letters. 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--. Health Insurance $ 950. 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. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do To which items is information from the payroll register transferred? Simplify and unify your HCM compliance processes. Collectionofanaccountreceivable.5. the box With the question mark to empty the box for a wrong answer. A) the firm's payroll checking account information 11. pay date. Purchaseofrentinadvance. check mark For a correct answer and double click the box with the question mark to empty the Learn more about the senior executives who are leading ADPs business. C) It should disburse the accrued pay to the employees. Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. D) Form 941 7. Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? How are employees who do not have bank accounts paid by an employer who uses an electronic fundstransfer system for payroll. 17. This will increase one answer. Purchaseofinventory.7. Most office supply stores also carry books that are formatted specifically to record payroll information.