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. \text{13. Collection of notes receivable.} A payroll register is the record for a pay period that lists employee hours worked, gross pay, net pay, deductions, and payroll date. Employee benefits, flexible administration, business insurance, and retirement plans. 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. 8. 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. Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. Wages and salaries payable 226 117,334. Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. TransactionTypeofActivityCashInfloworOutflow1. Access the definitive source for exclusive data-driven insights on todays working world. B) Both documents contain information about the employee's address and job title. 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 The payroll register for Nazir Corporation contained the following totals at the end of July: wages, $139,125; federal income taxes withheld, $35,582; state income taxes withheld, $5,863;. For fill-in-the-blank questions, press or click on the blank space provided. 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. What information is commonly provided by a job-seeker on the application for employment form? Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. On which income statement will the state unemployment tax expense appear under accrual accounting? 40. \text{8. Rushing River Boats has the following data in its Social Security tax payable General Ledger 41. We have been recognized by esteemed organizations for the value we bring to our clients, our associates and the global community. B) Payroll register A) Debit $1, Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. Issuanceofcommonstock.6. 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. 3. Paymentofemployeesalaries.2. D) It is a report that becomes published with other financial reports. 9. 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. SUTA tax payable 9,481. C) proof of payroll deposits C) It must remain in balance at all times. At ADP, we believe sports and business both require the right approach. B) FUTA A) It is the fourth entry in the General Journal on that date. 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. \text{11. True, The information in the payroll register forms the basis for entries in the Employee Earnings 38. 4. 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--. PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. 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. expenses & \text{ } & \text{ }\\ B. ERISA 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. A) It is employee labor that may be billed to customers. \text{12. Which financial statements are affected in the year 2022? How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? in its Federal withholding tax payable account. What are the main kinds of information contained in a payroll register? b. 6. \end{matrix} must it do to recognize the liabilities and expenses? 14. C) $1,715. We have credited a liability account for each of the tax amounts. Purchase of inventory.} The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries. Regardless of the format, payroll registers tend to follow the same basic structure. B) It allows managers to predict future labor costs. 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. The town is considering an ordinance that would prohibit putting 2. & \text{ } & \text{ }\\ C) It should disburse the accrued pay to the employees. Switching payroll service providers made easy. A) $2,253. & \text{ } & \text{ }\\ Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. Which act covers employee pension and welfare plan.? Current period taxable earnings for FICA taxes are as. Loantoanotherfirm. Compute and record the Kipley Company's SUTA and FUTA contributions. 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. the health Insurance is qualified under Section 125? Employers use the employee's earnings record in preparing ___. At December 31, 2022 the employee's pay rate was $15. 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? Medicare tax payable 222 ??? Jan 19 Wages and salaries payable 226 8,134. c. McNamara-O'Hara Service Contract Act 4. Collectionofanaccountreceivable.5. B) The income statement Discover how easy and intuitive it is to use our solutions. Which of the following are processes that occur in most payroll accounting systems? Purchaseofinventory.7. Wages and salaries payable 226 202,671. answer And double click the box with the question mark to empty the box for a wrong answer. 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 total expenses of the firm and increase the net income of the firm. Payroll journals are records of all payroll transactions. General Journal entry to record this transaction? 39. See Answer. Most office supply stores also carry books that are formatted specifically to record payroll information. 17. Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? 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. If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). mark for a correct Answer and double click the box with the question mark to empty the box for Under the Civil Rights Act of 1964 and the Age Discrimination in Employment Act, which of the following questions may not be asked by an employer during pre-hire inquiries? 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. Payment of an account payable.} A) It is a list of all persons and companies that the company pays money during a period. each option. business. FICA Taxes payable-HI-liability Medicare tax payable 3,197. Listed below are several transactions. D) The balance sheet May 14 Wages and salaries payable 226 117,334. 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. Saleofequipmentforanotereceivable.10. What is the purpose of the Age Discrimination in Employment Act (ADEA)? Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. ls the payroll register used for journalizing the payroll entries? Collection of an account receivable.} 4. C) Credit $4, E. OASDI. This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. False. 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. Paymentofalong-termnotepayable. Payment of employee salaries.} Multiple Choice. D) Credit $30. C) Alphabetically & \text{ } & \text{ }\\ A) Net pay The payroll register needs to record the hours each employee has served in the firm in a day. expense 522 $ 182,930. C) It is a report designed for external stakeholders. Under FMLA, the time must be used in one uninterrupted period of time. E. All of the above are provisions of ERISA. Requirements: Record the deduction for group insurance. A) Employee earnings record Does FLSA require all employees to be paid weekly, biweekly', monthly?