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