Accounting chapter 13 payroll liabilities and tax records, Accounting Chapter 13 multiple choice, Chapter 13 Accounting (True & False), Accounting Chapter 13

To record the total federal tax payment for employee income tax, social security tax, and Medicare tax, the account credited is

Cash

The payroll journal entry is based on the totals of the

Earnings Total column, each deduction column, and the Net Pay column

Payroll tax expenses

Account where the employers taxes are recorded

Earnings subject to unemployment taxes are

FUTA earnings

An employer normally pays federal withholding taxes, ss taxes, and medicare taxes once a year.

False

The amount entered for the payroll tax expense is the total gross earnings for the pay period

False

The cash in bank account is debited for the amount the employees actually earn in the pay period

False

The entry for salaries expense is recorded each pay period but the entry for payroll tax expense is recorded only at the end of the year

False

The fed. unemployment tax rate is greater than the state unemployment tax rate.

False

The only taxes that the employer must pay are unemployment taxes

False

The state unemployment tax payable account normally has a debit balance.

False

When a business pays its state unemployment taxes, the state unemployment tax payable account is credited

False

Amounts deducted from employees earnings and held for payment by the employer are recorded as expenses in the accounting records

False- in general journal

What taxes are included in the quarterly federal tax return filed by the employer?

Federal income tax Social security tax Medicare tax

Separate payroll accounts for each employee ar not kept in the general ledger but Accounts that summarize total earnings and deductions for all employees are kept in the

General ledger

Each employer is required by law to report payroll taxes on an

IRS Form 941

Each employer who withholds income tax, social security tax, and Medicare tax from employee must furnish each employee an

IRS Form W-2

Amounts recorded in the general columns of a cash payments journal are posted

Individually to general ledger accounts

Electronic federal tax payment system ( EFTPS)

Larger businesses deposit income tax payments by electronic funds transfer

The 12 month period that ends on June 30 of the prior year that is used to determine how frequently a business must deposit payroll taxes is the

Look back period

The payroll register and employee earnings records provide all the info. Needed to prepare

Payroll and payroll tax reports

Payroll info. For each pay period is recorded in the

Payroll register and on a employees earnings recorde

Federal unemployment tax act ( FUTA)

Requires employers to pay unemployment taxes

State unemployment tax act ( SUTA)

Requires employers to pay unemployment taxes

The Earnings Total column total is journalized as a debit to

Salary Expense

What account title is used to journalize the Total Earnings column of the payroll register?

Salary Expense

The 4 separate payroll taxes most employers must pay are

Social security tax, Medicare tax,federal unemployment tax and state unemployment tax

What is the tax rate ThreeGreen must pay on employees for each of the following taxes: social security, Medicare, federal unemployment, and state unemployment?

Social security: 6.2% of employee earnings up to a maximum of $106,800.00 in each calendar year Medicare: 1.45% of total employee earnings FUTA: 0.8% on the first $7,000.00 earned by each employee SUTA: 5.4% on the first $7,000.00 earned by each employee

A state tax paid by employers that is used to pay benefits to u7nemployed workers is

State unemployment tax (SUTA)

Unemployment taxes

Taxes collected to provide funds for workers who are temporarily out of work Usually only paid by the enlmployer

What amounts determine how often deposits are made to the federal government

The amount of payroll taxes collected during the current deposit period and the amount of payroll taxes owed during a prior 12 month period

The column totals of a payroll register provide

The debit and credit amounts needed to journalizing payroll

From 941

The employers quarterly federal tax return Reports the accumulated amounts of FICA and federal income tax withheld from employees earnings from the quarter as well as FICA tax owed by the employer

Form 941

The employers unemployment tax return Includes both federal and state unemployment taxes paid during the year

Salaries expense

The expense account used to record emplyoyees earnings

Total earnings column is the salary expense and is debited the amount

The total of each deduction column (except the total column) is credited to a liability account

Form W-3

The transmittal of wage and tax statements filed with the federal government to summarize the information contained on employees forms W-2

Amounts deducted from employees earnings and held for payment by the employer become liabilities to the business

True

Business often use computers and special software to prepare payroll in an effort to reduce simple mathematical errors and to improve productivity

True

Employee payroll is a major expense for most companies

True

FICA taxes on an employees gross earnings are paid both by the employer and the employee

True

In a few states, employees are required to pay unemployment taxes

True

The SS tax is paid by both the employer and employees.

True

The employees total gross earnings amount is debited to the salaries expense account each pay period

True

The hospital insurance premiums payable account normally has a credit balance

True

The payment of the payroll increases the expenses of the business

True

The payroll register is the source of information for preparing the journal entry for payroll

True

The payroll tax expense account normally has a debit balance

True

By what method are businesses encouraged to deposit federal payroll taxes?

Using the Electronic Federal Tax Payment System

The total of the Federal Income Tax column of a payroll register is credited to

a liability account

The total of gross earnings for all employees earning hourly wages, salaries and commissions is

a salary expense

The total of the Net Pay column of the payroll register is credited to

an asset account

To record the employer payroll taxes expense, what accounts are debited and credited

debit- payroll tax expense and credit-Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable-Federal, Unemployment Tax Payable- State

What account title is used to journalize the Federal Income Tax column of the payroll register?

employee income tax payable

Employer business taxes are

expenses

A federal tax used for state and federal administrative expenses of the unemployment progran is the

federal unemployment tax

A federal tax payed by employers to administer the unemployment program is

federal unemployment tax (FUTA) the tax rate and base for (FUTA) is the FUTA tax rate and FUTA tax base

What is the amount of each employee's earnings that is subject to federal and state unemployment taxes at ThreeGreen?

first 7,000

To record the payment of federal unemployment tax, the account is

inemloment tax payable- federal and state

What account title is used to journalize the Medicare Tax column of the payroll register?

medicare tax payable

When a semimonthly payroll is paid, the credit to Cash is equal to the

net pay of all employees

Payroll taxes that are paid by both the employer and the employee are

social security tax and Medicare tax

What account title is used to journalize the Social Security Tax column of the payroll register?

social security tax payable

a state tax used to pay benefits to unemployed workers is the

state unemployment tax

All the payroll information needed to prepare payroll and tax reports is found on

the payroll register and the employee earnings record

Employer payroll taxes are

Business expenses and are recorded in the payroll tax expense account

When must employers furnish a W-2 statement to their employees?

By January 31 of the following year

For a monthly schedule depositor, when are payroll taxes paid to the federal government?

By the 15th day of the following month

The payment of payroll taxes to the government is

A deposit

Federal tax deposit coupon

A form sent with payment for FICA and federal income taxes or federal unemployment taxes to indicate the total amount of taxes being paid

Form W-2

A form that provides the employee with a summary of earnings and amounts withheld for federal state and local taxes Aka wage and tax statement

The federal unemployment tax act (FUTA) says

A national program to provide cash payments to employees who lose their jobs through no fault of their own