Part Three-- Identifying Accounting Concepts and practices
Employers are required to furnish each employee with an annual statement of earning and withholdings before
January 31 of the following year
The entry to journalize paying a semimonthly payroll less deductions for employee income tax, social security and Medicare tax, and US Saving Bonds is a credit to Cash and the liability accounts and a debit to
Salary Expense
The source document for paying employee income tax and social security and Medicare tax is
a check
The source document for paying state unemployment tax is
a check
The source document for payment of a payroll is
a check
In general, employers are required to pay state unemployment taxes
during the month following each calendar quarter
Until the amounts withheld from employees salaries are paid by the employer, they are recorded as
liabilites
Each employer must file a federal tax return showing the federal income tax and social security and Medicare taxes due the governement
quarterly
The total earning subject to federal unemployment tax is referred to as
taxable earnings