Chapter 13 Accounting Concept Assessments

Record the payment of the employer's federal unemploy- ment taxes.

DEBIT:Federal Unemployment Tax Payable CREDIT: Cash in Bank

is the tax return that includes federal unemployment taxes paid by the employer during the year.

Form 940

The document that reports the accumulated amounts of federal income taxes and FICA taxes withheld from employees' earnings for the quarter is

Form 941

The wage and tax statement that summarizes an employee's earnings and tax deductions for the previous calendar year is called

Form W-2

The transmittal of wage and tax statements that is filed by the employer with the Internal Revenue Service is called

Form W-3

The form that is prepared and sent with the employer's check to show the amount of federal payroll taxes being sent to the federal government is a

federal tax deposit coupon

are usually paid only by the employer and collected to provide funds for workers who are temporarily out of work.

unemployment taxes

Record the payment of the employer's state unemploy- ment taxes.

DEBIT: State Unemployment Tax Payable CREDIT: Cash in Bank

Record the purchase of savings bonds for the employees

DEBIT: U.S. Savings Bonds Payable CREDIT: Cash in Bank

The total amount of net pay of all employees is entered on the side of the Cash in Bank account.

CREDIT BALACE

An increase in the State Unemployment Tax Payable account is recorded as a

CREDIT BALANCE

he Medicare Tax Payable account has a normal balance.

CREDIT BALANCE

The Payroll Tax Expense account has a normal balance.

DEBIT BALACE

The Salaries Expense account has a normal...

DEBIT BALACE

The total amount of gross earnings is entered on the side of the Salaries Expense account.

DEBIT BALACE

When a payment is made to the federal government for the employees' federal income tax, an entry is made on the side of the Employees' Federal Income Tax Payable account.

DEBIT BALACE

Record the payment of employees' state income taxes.

DEBIT: Employees' State Income Tax Payable CREDIT: Cash in Bank

Record the payment of life insurance premiums withheld from the employees' earnings.

DEBIT: Life Insurance Premiums Payable CREDIT: Cash in Bank

Record the employer's payroll taxes.

DEBIT: Payroll Tax Expense CREDIT: Social Security Tax Payable, Medicare Tax Payable, Federal Unemployment Tax Payable, State Unemployment

Record the payment of the weekly payroll less the amounts withheld for employees' federal income tax, employees' state income tax, FICA taxes, life insurance premiums, and U.S. savings bonds.

DEBIT: Salaries Expense CREDIT: A. Cash in Bank Employees' Federal Income Tax Payable Employees' State Income Tax Payable Social Security Tax Payable Debit Credit IA E. Medicare Tax Payable F. Federal Unemployment Tax PayableG. State Unemployment Tax PayableH. U.S. Savings Bonds Payable I. Life Insurance Premiums Payable

Record the payment of FICA taxes and employees' federal income taxes.

DEBIT: Social Security Tax Payable, Medicare Tax Payable, Employees' Federal Income Tax Payable CREDIT: Cash in Bank

Amounts withheld from gross earnings and held by the employer until the time of payment are assets of the business.

F

An employer is required to file only an annual tax report on the employer.

F

Employees' wages are a liability of the business.

F

The Unemployment Tax Payable account is used to record both federal and state unemployment taxes.

F

When a business transfers money from its regular checking account to the payroll checking account, the check is written for the amount of gross earnings.

F

Both the employee and the employer pay the same rate for social security and Medicare taxes.

T

Form W-2 must be prepared and given to each employee by January 31 of the year following that in which the taxes were deducted.

T

The Cash in Bank account is credited for the total amount that is paid by the employer to the employees.

T

The employer's payroll taxes are operating expenses of the business.

T

The salary expense of a business is equal to the total gross earnings.

T

The taxes that an employer must pay are FICA taxes and unemployment taxes.

T