61. Who are the winners and who are the losers when the minimum wage is increased? 34. Learn more about the senior executives who are leading ADPs business. Fair Labor Standards Act 4. Most office supply stores also carry books that are formatted specifically to record payroll information. Issuanceofbonds. Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. 33. Paymentofalong-termnotepayable.13. 5. 9. I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." The payroll register is a separate payroll record that is kept on each employee. B) It must create an adjusting entry to recognize the payroll accrual. Raw materials purchases for cash. For what reason are "distribution" columns sometimes provided in the payroll register? D) The balance sheet Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. expenses Wages Payable-liability Administrating the state unemployment taxes. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. Required: 1. D) It highlights issues and results of seasonal labor. Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO. How do the Stanford-Binet and Wechsler tests differ? Type the formula, then press Enter. The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. Direct materials usage. ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. Does FLSA say how often employees need to be paid? B) Employee earnings record A) Debit $1, Social Security tax $ 1,670. 8. date: Oct 27 Wages and salaries expense 522 $298,384. 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 C) Because payroll represents a liability and an expense of the business. D) Health insurance payable 66. B) It should make a note to create the reversing entry at the end of the next financial period. e. None of the above. d. At least seven homes have large-screen TVs? The payroll register needs to record the hours each employee has served in the firm in a day. 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? As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $14, DATE DESCRIPTION POST REF. We provide payroll, global HCM and outsourcing services in more than 140 countries. B) It contains a detailed listing of every transaction during a period. Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? Which of the following represents the missing Social Security and Medicare taxes, assuming that. Fair Labor Standards Act (Federal Wage & Hour Law). Using the payroll registers, complete the General Journal entries as follows: February 7 Journalize the employee pay. B) The labor report, C) The statement of owners' equity lf both federal and state regulations cover minimum wages for the same employee, is the federal rate always used for the minimum wage? 2. Single click the box with the question What are the enhancing qualities of the qualitative characteristics? Which basic records are generated in most payroll accounting systems? A) The income statement c. McNamara-O'Hara Service Contract Act Copyright File, adjust, and print returns and reports. Which act sets the minimum wage, and what is the current wage rate? In this last task, the following steps will be completed. How to do payroll accounting: 7 steps At first glance, payroll accounting can be scary. Why is it important to have columns on the payroll register title "Earnings subject to Federal 31. FIT Payable-liability D) It must wait until the next financial period to record the payroll data. C) SUTA Want more exclusive business insights like this delivered to your inbox? Payment of an account payable.} 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. B) It is an individual register maintained for each employee, listing of all the payroll information. C) Alphabetically B) Debit Cash $13,618; Credit Health Insurance Payable $13,618. The Federal Insurance Contributions Act covers restrictions on the employment of child labor. Every state imposes a state unemployment tax on employers in their state. 3. What special accounts must usually be opened in the general ledger to record payroll tax entries? Journal entries? Cash 101 202,671. Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? B) Gross pay 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. Collection of notes receivable.} Age Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? Under FLSA, what is the current minimum wage? That's why we've partnered with some of the top athletes in the world. C) Social Security tax, $746; Medicare tax, $174. Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. Rate of pay 8. A) It must credit the asset accounts for the appropriate payroll amounts. At a minimum, payroll registers help businesses: But thats hardly the extent of how beneficial a payroll register can be. Payroll data for the current week are as follows: hours worked, 46; federal income taxwithheld, $110; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment Questions pertaining to religion, gender, national origin, or age are allowed on application forms when these are bonafide occupational qualifications for a job. B) Debit $30, FICA Taxes payable-HI-liability 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. A) As assets \text{10. 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. Take your organization to the next level with tools and resources that help you work smarter, regardless of your businesss size and goals. D) Transcribing A payroll register lists all basic information related to employee take-home pay. DATE DESCRIPTION POST REF. Hours worked. B. ERISA requires each employer to establish a pension plan. Of the items in the following list, which one (s) should appear in a payroll register? Which of the following bases for discrimination in employment practices is NOT covered in the Civil Rights Act of 1964? These entries are then incorporated into an entity's financial statements through the general ledger. The company does not provide health insurance, paid vacations, or any other benefits. 17. Make payments. Read more about the author. Employers use the employee's earnings record in preparing ___. \end{matrix} Medicare tax $ 390. What is the role of enhancing qualities in the conceptual framework? Neither The Balance Sheet Nor The Income Statement. 55. All nine have large-screen TVs? These details include the employee id number, the department they belong, their job profile, etc. All rights reserved.AccountingCoach is a registered trademark. Deductions. The employees gross wages for the past week are. Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) C) It is the fourth repetition of the same entry. 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--. B. For fill-in-the-blank questions, press or click on the blank space provided. B) the total gross pay, deductions, and net pay during the period pay date. Paymentofalong-termnotepayable. chronologically. McHale Enterprises has the following incomplete General Journal entry for the most recent pay 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? Whenever employers withhold taxes and deductions from wages, pay employees or deposit tax payments with government agencies, that information should be simultaneously documented in the payroll register. May 14 Wages and salaries payable 226 117,334. B) Equity 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. C) $1,715. * 29. pay Gross wages of $500.00 less withholdings of $38.25 for FICA and $87.25 for federal and state income taxes. Loantoanotherfirm. B) Both documents contain information about the employee's address and job title. 8. We have credited a liability account for each of the tax amounts. C) It designates where labor is used in a firm. Federal withholding tax $ 3,570. Total Earnings 9. Loan to another firm.} Name two advantages and two drawbacks of Verify the date and enter General as the reference. & \text{ } & \text{ }\\ Were reimagining what it means to work, and doing so in profound ways. The total of each distribution column shows the total amount of that department's wage expense. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do in its Federal withholding tax payable account. D) 401(k) contributions 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. ordinance is passed? 40. Saleofequipmentforanotereceivable.10. Yes, Employees FIT Payable . D) It is a report that becomes published with other financial reports. The first answer is provided as an example. C) $12,576. You can think of it as a summary of all the payroll activity during a period. posted an additional $4,390 on its October 31 pay date. BALANCE DATE DESCRIPTION POST REF. To rule the payroll register means that the payroll accountant establishes procedures about the payroll register. E. OASDI. Which of the following reports links the accounting and the human resources departments? Medicare tax payable 222 4,205. Which of the following is an example of a trade association? B) Because payroll represents an asset and an income of the business. 63. \text{4. Direct labor usage. 57. Calculate regular and overtime pay. It indicates, "Click to perform a search". the total expenses of the firm and decrease the net income of the firm. Which of the following is true of employee's earnings record? the total expenses of the firm and increase the net income of the firm. Regardless of the format, payroll registers tend to follow the same basic structure. Time worked - regular & overtime 7. Gross wages of $500.00 + employer's portion of FICA $38.25 ($500.00 X employer rate of 7.65%) + unemployment tax of $24.00 + worker comp insurance of $5.00. D) Company website How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. a wrong answer. Jan 19 Wages and salaries payable 226 8,134. 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. D) Form 941 This will increase the D) It should create a reversing entry in the General Journal. A) Revenue Sets minimum wage. D. ERISA provides that all employees are eligible to set up their own individual retirement accounts. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. Which items would be debited in the General Journal entry to record the employees' share of Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month? D) The same as the chart of accounts On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. Since Eco Brewers is a monthly schedule Health Insurance payable 224 8,375. 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. 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? Report changes to your business. D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General B) It is employee labor that does not pertain to labor on customer jobs. 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. True, Besides containing the supporting data for periodic tax reports, the employee earnings record What is your sisters total cost under each of the two plans? 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. 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. \text{5. mark to produce a Check mark for a correct answer and double click the box with the question A) A debit balance will increase the expenses of the firm's income statement. \text{3. What is the effect of each of the following posting upon the assets, liabilities, and owner's equity of a company. each option. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. A) Ledgering \text{8. Fast, easy, accurate payroll and tax, so you can save time and money. True False. 4. These liabilities accompany every payroll you run. Single click Does every state have both federal and state unemployment laws? 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. Zipperle Company has the following payroll information for the pay period ending September 18, For example, there may be deductions for 401(k) pension plans, health insurance, life insurance, vision insurance, and for the repayment of advances. D) Both documents contain details of employee earnings, deductions, and disbursement for a Describe the main types of records used to collect payroll data. and year-to- date earnings. Vesting conveys to employees the right to share in the retirement fund in the event they are terminated before the normal retirement age. TransactionTypeofActivityCashInfloworOutflow1. Collectionofnotesreceivable. 401(k) contributions $ 1,115. 19. What is The balance in the account? Health Insurance Premiums Collected-liability C) Earnings subject to FICA tax Dont take our word for it. B) tax remittance information Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. Federal withholding tax payable 220 $ 2,207. box for a wrong Answer. Does every state have state unemployment laws? During the past week, the employee worked 50 hours. A. ADP is a better way to work for you and your employees, so everyone can reach their full potential. Employers use the employee's earnings record in preparing ___. 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. All salaried employees. February 7 Journalize the employer . Net pay $ 19,747. Are FICA taxes levied upon employers only? Which of the following are processes that occur in most payroll accounting systems? D) It is a report designed to be read by parties external to the firm. He is the sole author of all the materials on AccountingCoach.com. A) Debit $1, The employers total expense for Marys employment during the week is. SUTA Taxes Payable-liability Paymentofemployeesalaries.2. Which financial statements are affected in the year 2022? expenses are, the lower the profitability will be. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial B) Total overtime earnings B. ERISA requires each employer to establish a pension plan. 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. Garnishment $ 450. At ADP, we believe sports and business both require the right approach. 1. Payroll journals are records of all payroll transactions. To prohibit discrimination on the basis of age in the employment practices of employer. Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. Does FLSA require all employees to be paid weekly, biweekly', monthly? Record the health insurance deduction. C. 40 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. C) Form W- See how we help organizations like yours with a wider range of payroll and HR options than any other provider. Paymentofanaccountpayable. In a sample of nine homes, what is the probability that: a. E. Sex, Which of the following statements is NOT a provisions of ERISA? These computations are shown in the Employee Payroll Register. Its best practice to audit payroll every pay period. 58. A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. Gross pay and net pay. Besides payroll information, the payroll register contains ________. Discover a wealth of knowledge to help you tackle payroll, HR and benefits, and compliance. FUTA Taxes Payable-liability D) It is non-employee labor that the company must pay. D. FMLA C) It must remain in balance at all times. When specific payroll details are needed, such as during an audit, accountants typically refer to the payroll journal instead of the general ledger.