Payroll Chapter 1 Flashcards | Quizlet Payroll Chapter 1 5.0 (5 reviews) Term 1 / 50 True Click the card to flip Definition 1 / 50 The current minimum wage set by the Fair Labor Standards Act is $7.25 per hour Click the card to flip Flashcards Learn Test Match Created by kittykiss Terms in this set (50) True C) The balance sheet These computations are shown in the Employee Payroll Register. Rate of pay 8. Under the Consumer Credit Protection Act, what is the maximum percentage that can be deducted from an employee's pay to satisfy a student loan garnishment? D) One side of the equation must equal zero. tax Remittance on February 15? D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 1. What is a use of a firm's labor trend reports? In January 2023 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2022. In cases where both Federal and State regulations cover the minimum wage for the same employee, the high of the two rates is always used as the standard minimum wage. incorrect.) Step 2: Working Hours. Who is covered by the Walsh-Healey Public Contract Act? 20. the payroll? 19. The primary journal entry for payroll is the summary-level entry that is compiled from the payroll register, and which is recorded in either the payroll journal or the general ledger. True, A debit always decreases the balance of an account. entry? The Fair Labor Standard Act sets the minimum wage and the current minimum wage rate is $7.25 per hour. C) It should disburse the accrued pay to the employees. D) $1,875. Basic payroll register templates can be found online or created in programs like Excel. 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. Which basic records are generated in most payroll accounting systems? 1. 5. Requirements: Record the deduction for group insurance. PAYROLL REGISTER FOR PERIOD ENDING January 8, 20 - - REGULAR EARNINGS OVERTIME EARNINGS DEDUCTIONS NET PAY TAXABLE EARNINGS TOTAL FICA GROUP HEALTH CHECK EMPLOYEE AMOUNT AMOUNT EARNINGS OASDI HI FIT SIT SUTA CIT SIMPLE INSURANCEINSURANCE NO. Purchaseoftreasurystock. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do B) Employee pay remittance and voluntary deduction remittance C) Employee earnings record Upload your study docs or become a Course Hero member to access this document Continue to access Term Winter Professor N/A Tags Union Dues Payable-liability The purpose of payroll register is to record of all the payment details for employees during a specific pay period. Accounting questions and answers. D) Health insurance payable How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. D) Form 941 B) the total gross pay, deductions, and net pay during the period A) Net pay D) A debit balance will increase the income of the firm's income statement. Wages and salaries payable 226 117,334. 10. To ensure compliance, employers must be familiar with the requirements applicable to their workforce and retain the appropriate documentation for the length of time specified by federal, state and local governments. D) It must wait until the next financial period to record the payroll data. Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). 6. E. Sex, Which of the following statements is NOT a provisions of ERISA? C) SUTA Most firms are now using a standard reference inquiry form, supplied by the IRS, If an investigative consumer report is being checked, the job applicant must be notified in writing by the employer that such a report is being sought, There are no states that allow employees to access their personnel files, The payroll register is a separate payroll record that is kept on each employee, A payroll register lists all employees who have earned remuneration, the amount of remuneration, the deductions, and the net amount paid for each pay period, The amounts needed for the payroll entries in the journal come from the employee's earnings record, The trend toward outsourcing of payroll operations has weakened in recent years. The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. It lists payroll information about each employee, such as hours worked, gross pay, deductionsand net pay. The other hourly employees receive overtime pay when they work more than 35 hours in one week. Click the card to flip Definition 1 / 52 True Click the card to flip Flashcards Learn Test Match Created by Ziera117 Plus Terms in this set (52) pay date. Issuanceofcommonstock.6. Complete the steps outlined below: 1. 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;. The basic entry (assuming no further breakdown of debits by individual department) is: There may be a number of additional employee deductions to include in this journal entry. The primary journal entry for payroll is the summary-level entry that is compiled from the payroll register, and which is recorded in either the payroll journal or the general ledger. Federal income tax payable 11,955. Net pay $ 19,747. True, Employee earnings records form the link between accounting and the human resources The payroll register is a separate payroll record that is kept on each employee. U.S. government T-bills account for 45%45 \%45% of the portfolio, large-company stocks constitute another 40%40 \%40%, and small-company stocks make up the remaining 15%15 \%15%. D) Transcribing Does FLSA say how often employees need to be paid? February 7 Journalize the employer . expenses are, the lower the profitability will be. B) Debit $4, prepare the payroll register enter the information into the employee payroll records prepare paychecks and send them to paymaster for distribution to employees send a copy of the payroll register to Accounts Payable social security taxes income tax withholding payroll deductions in tax: Wages and salaries withholding taxes payable Saleofequipmentforanotereceivable. At ADP, we believe sports and business both require the right approach. Enter the debit amount to clear the existing credit to Payroll Cash from the first journal entry above. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. Which of the following bases for discrimination in employment is not covered under the Civil Rights Act of 1964? Federal withholding tax payable 220 399,472. Its best practice to audit payroll every pay period. D) Employer's Federal Income tax, Which of the following columns would be used as part of a general journal entry? Application of overhead to goods in process. They must disclose to the job applicant that they are seeking an investigative report. A magnifying glass. \text{12. A) the beginning and ending dates of the pay period What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? automatically graded as incorrect.) 15. $y = -x - 4$. It records payroll record on each employee separately. Discover what others say about us. D. ERISA provides that all employees are eligible to set up their own individual retirement accounts. 56. All rights reserved.AccountingCoach is a registered trademark. Get inspired to begin transforming HR at your company. ls the FUTA tax used to pay unemployment benefits? Single click 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? We have credited a liability account for each of the tax amounts. Raw materials purchases for cash. Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? b. This sort of regular data-entry routine, when strictly adhered to, can help ensure accurate payroll records. Name two advantages and two drawbacks of To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. A) Debit $1, A) Debit $1, B) Payroll register The highest-paid 10 percent of their workforce. question mark Will be automatically graded as incorrect.) Payroll liabilities In most business organizations, accounting for payroll is particularly important because (1) payrolls often are the largest expense that a company incurs, (2) both federal and state governments require maintaining detailed payroll records, and (3) companies must file regular payroll reports with state and federal governments Under FLMA, do any states have paid a family leave plan? & \text{ } & \text{ }\\ Wages Payable-liability D) It is non-employee labor that the company must pay. A) Net pay These entries are then incorporated into an entity's financial statements through the general ledger. B) FUTA 9. Describe the main types of records used to collect payroll data. must it do to recognize the liabilities and expenses? All salaried employees. Collectionofnotesreceivable. C) Employee pay disbursement and voluntary deduction remittance A payroll register lists all basic information related to employee take-home pay. Health Insurance $ 950. Are FICA taxes levied upon employers only? FUTA tax payable 1,322. In other words, a payroll register is the document that records all of the details about employees' payroll during a period. a. Walsh-Healey Public Contracts Act If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation). This will increase Any boxes left with a question mark will be automatically graded as C) Labor reports What is your sisters total cost under each of the two plans? Are unions and employment agencies covered under the Civil Rights Act of 1964? Purchaseofrentinadvance. I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." What is true about the trial balance? $3,825 of employee withholding ($50,000 X 0.0765), Exempt Salaried Employees Paid Semi-monthly. 4. Title of report 2. A) Employee earnings record posted an additional $4,390 on its October 31 pay date. Direct labor usage. Social Security tax payable 221 10,517. each option. Which act covers employee pension and welfare plan.? C) Payroll accounts do not appear on the trial balance because of their changeable nature. A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record 28. \text{3. period. 63. Which of the following is not a provision of ERISA? The tax payers standard deduction and the personal exemptions ($3,650) allowed for the tax year divided by the number of ay periods in the year. Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. serves as a backup in the event of computer failure. Which of the following best describes the purpose of the payroll register? C) It must remain in balance at all times. To prepare period reports and complete Form W-2 for each employee, Fundamentals of Financial Management, Concise Edition, Operations Management: Sustainability and Supply Chain Management, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. & \text{ } & \text{ }\\ True (California, New Jersey, New York & Rhode Island). A) The total of the debits must equal the total of the credits. A. B) $15,298. C) Credit $4, Health Insurance Premiums Collected-liability What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? 4. Gross pay and net pay. Loantoanotherfirm.12. Use the information in the previous exercise to prepare journal entries for the following events in May. To rule the payroll register means that the payroll accountant establishes procedures about the payroll register. What is the amount of the 401(k) contributions for the pay date? How do the Stanford-Binet and Wechsler tests differ? Keeping vital payroll data up to date and easily accessible is essential for employers to address unexpected discrepancies without confusion. A) The statement of owners' equity A. 401(k) contributions payable 223 ??? True Which of the following is true of employee's earnings record? Paymentofanaccountpayable. \text{7. Type an equals sign (=) to signal the fact that the cell contains a formula. The company does not provide health insurance, paid vacations, or any other benefits. Payroll typically creates an accrued liability for all of the following reasons except Because it is unnecessary to report amounts owed to employees for salaries or wages earned. I firmly believe that the well-organized material provided by the PRO account of AccountingCoach has motivated me to excel during the academic year through the MBA program's working assignments and to be much better prepared for my finals. This information is also reflected in summary level entries in the businesss general ledger. The portion of the Federal Insurance Contributions Act that deals with Social Security is called. \text{6. What is the term for transferring data from the General Journal to the General Ledger? Sale and delivery of finished goods to customers for cash (record unadjusted cost of sales). B) It must create an adjusting entry to recognize the payroll accrual. B. ERISA requires each employer to establish a pension plan. 1. Health Insurance payable 224 8,375. (You may select more than one answer. mark for a correct Answer and double click the box with the question mark to empty the box for D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General Payroll Accounting (Practice Quiz) Print PDF For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. You can think of it as a summary of all the payroll activity during a period. A(n) ________ is a collection of cash and other items that are used in the operation of the May criminal background checks be used by all employers for any person? It Recorded as a liability for the employer in the payroll entry. B) Both documents contain information about the employee's address and job title. B. ERISA 8. C) Credit $1, under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. expense 522 $ 12,987. 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. Make payments. E. All are provisions of FLSA. Employee benefits, flexible administration, business insurance, and retirement plans. B) Total overtime earnings Payroll-Operating expense-liability Hours worked. Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? below deck mediterranean 2022 cast. A) It should create a reminder about the accrual to ensure accuracy of computations on the next 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. D) 401(k) contributions B) Social Security tax, $792; Medicare tax, $204. Jeremy is single with two withholding allowances. D. 50 A) A debit balance will increase the expenses of the firm's income statement. Issuanceofbonds.11. Although they record much of the same information, payroll journals and payroll registers are not identical. Dont just take our word for it. Report changes to your business. 5 pay date: May 5 Payroll Taxes Expense $ 27,671. Our online store for HR apps and more; for customers, partners and developers. Q08. \text{Transaction} & \text{Type of Activity} & \text{Cash Inflow or Outflow}\\ \hline C. ERISA establishes minimum vesting schedules that protect the workers' benefits. Should an employer in Philadelphia record the liability for the withholding of all three income taxes in one liability account such as INcome Taxes Payable? C) Debit Health Insurance Payable $13,618; Credit Cash $13,618. \end{matrix} D) the employee's name, social security number, and address & \text{ } & \text{ }\\ ls the payroll register used in preparing the Form W-2? depositor, what entry Should appear on November 15 for the remittance of the month's Social A) It is a list of all persons and companies that the company pays money during a period. In Philadelphia, Pennsylvania, most workers are subject to three income taxes upon their earnings - federal state and city. C) It is a worksheet that accountants use to ensure payroll accuracy. 12. C. All employees under the age of 30. 40. What does the term "billable time" mean as it pertains to payroll accounting? This entry usually includes debits for the direct labor expense, salaries, and the company's portion of payroll taxes. Which act sets the minimum wage, and what is the current wage rate? We provide payroll, global HCM and outsourcing services in more than 140 countries. 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. business. one answer. 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? Enchanted Creations has the following data in its Federal withholding tax payable General Ledger How does the FIFO method different from the weighted-average method? A) Ledgering See how we help organizations like yours with a wider range of payroll and HR options than any other provider. The employee's earnings records is used in preparing the employees' W-2 forms. Didier and Sons had the following employer's share payroll tax general journal entry for the May A) $2,253. C) proof of payroll deposits employees' payroll, one for the employer's share of the taxes. Saleofequipmentforanotereceivable.10. Only "A payroll register" and "The employee's earnings record" are correct. Explain the major provisions of the Fair Labor Standards Act. Indirect materials usage. Does FLSA require the employer to display a poster with the FLSA rules? On which income statement will the state unemployment tax expense appear under accrual accounting? What is the effect of each of the following posting upon the assets, liabilities, and owner's equity of a company. D. All employees earning the minimum wage. Workers' compensation insurance premiums are paid for by the employees, Workers' compensation insurance premiums vary according to the different degrees of danger in the employees' jobs. Purchaseofinventory. 54. Deductions. A) $399,472. You can enter a formula into a cell manually (typing it in) or by pointing to the cells. Rushing River Boats has the following data in its Social Security tax payable General Ledger Name of each employee 5. A) Debit R. Sanders Capital, $250,000; Credit Cash, $250, Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. C) It allows payroll employees to divert funds into faux accounts. Which of the following is not a provision of FLSA? That's why we've partnered with some of the top athletes in the world. D) The labor report Questions pertaining to religion, gender, national origin, or age are allowed on application forms when these are bonafide occupational qualifications for a job. For what reason are "distribution" columns sometimes provided in the payroll register? Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. pay date. 11. Learn how we can make a difference by joining forces to improve the success of the clients we share. 18. the box With the question mark to empty the box for a wrong answer. Continuing Payroll Problem-B OLNEY COMPANY, INC. The Civil Rights Act of 1964 protects all employees from arbitrary dismissal. \text{13. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. This will increase the E. OASDI. 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 Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. Oct 27 Wages and salaries payable 226 202,671. Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. chronologically. Are employers required to keep a photocopy of the l-9 form?