A) It should create a reminder about the accrual to ensure accuracy of computations on the next 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? Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? 221 \text{15. b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. Another important step in maintaining a payroll register is to perform audits. pay date. You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. posted an additional $4,390 on its October 31 pay date. Define hours worked. Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. Which basic records are generated in most payroll accounting systems? D) Personnel file Any boxes left with a 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. D) Garnishments, Which columns might an employer include to facilitate employer-share payroll tax General Although they record much of the same information, payroll journals and payroll registers are not identical. What is the primary purpose of a labor report? Health Insurance $ 950. Name of each employee 5. 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. B) It facilitates accuracy in employee payroll tax computations. Social Security tax payable ??? Only "A payroll register" and "The employee's earnings record" are correct. Whether you operate in multiple countries or just one, we can provide local expertise to support your global workforce strategy. You can enter a formula into a cell manually (typing it in) or by pointing to the cells. 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. 39. 5. These computations are shown in the Employee Payroll Register. Wages and salaries-Operating expense-debit B) It depicts the ideal distribution of labor in a firm. C) Social Security tax, $746; Medicare tax, $174. 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. each option. & \text{ } & \text{ }\\ Get inspired to begin transforming HR at your company. *Graph the equation using the slope and $y$-intercept, as in the Previous Examples. Issuanceofbonds. Rushing River Boats has the following data in its Social Security tax payable General Ledger Enchanted Creations has the following data in its Federal withholding tax payable General Ledger The volume of manual paycheck entries can be reduced by continual attention to the underlying causes of transaction errors, so there are fewer payroll errors to be rectified with a manual paycheck. A) It is a list of all persons and companies that the company pays money during a period. C) It is non-traceable labor that a company must absorb as overhead. Which act covers employee pension and welfare plan.? Does FLSA say how often employees need to be paid? Rate of pay 8. Employee SIT Payable-liability 34. Most office supply stores also carry books that are formatted specifically to record payroll information. 65. 41. A payroll register is tool that records wage payment information about each employee - gross pay, deductions, tax withholding, net pay and other payroll-related information - for each pay period and pay date. The entry to record vacations earned in 2022 will affect Vacation Expense on the 2022 income statement and Vacation Payable, a liability on the 2022 balance sheet. TransactionTypeofActivityCashInfloworOutflow1. Report changes to your business. The primary payroll journal entry is for the initial recordation of a payroll. < Prey 18 of 40 Pay period dates. A) It must credit the asset accounts for the appropriate payroll amounts. 11. 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. During the past week, the employee worked 50 hours. Discover what others say about us. DEBIT CREDIT DEBIT CREDIT expense 522 $ 12,987. Collection of notes receivable.} It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. A) It communicates departmental profitability. under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. Of the items in the following list, which one (s) should appear in a payroll register? $3,825 of employee withholding ($50,000 X 0.0765), Exempt Salaried Employees Paid Semi-monthly. It records payroll record on each employee separately. 14. \text{2. Wages and salaries payable 226 117,334. (You may \text{11. pay date. C) It must remain in balance at all times. The holder of any unclaimed property must file a report after a specified sttutory period and then surrender the money to the stte as abandoned property. D) The transaction appears on page four of the General Journal. C) Labor reports Time worked - regular & overtime 7. Journal entries? Compute the employer's payroll taxes for the period. Single click Wages and salaries payable 226 ??? 10. d. Occupational Safety and Health Act Hours worked. Payment of an account payable.} C) Employee pay disbursement and voluntary deduction remittance Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. 11. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander . Federal withholding tax payable 220 $ 2,207. incorrect.) Want more exclusive business insights like this delivered to your inbox? ADP is a better way to work for you and your employees, so everyone can reach their full potential. Cross), Give Me Liberty! B) tax remittance information Collectionofanaccountreceivable. A payroll register is a valuable tool that records employee wage information for each pay period and pay date. 21 Were reimagining what it means to work, and doing so in profound ways. one answer. This account is credited for the total amount of FIT with held each payday and is subsequently debited for the amounts paid to a depositary or to the IRS. Color Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) This entry may be avoided if the amount is immaterial. C) It should disburse the accrued pay to the employees. B) It should make a note to create the reversing entry at the end of the next financial period. Saleofequipmentforanotereceivable. a. Walsh-Healey Public Contracts Act question mark Will be automatically graded as incorrect.) A) Net pay Discover how easy and intuitive it is to use our solutions. 9. How to do payroll accounting: 7 steps At first glance, payroll accounting can be scary. Complete the steps outlined below: 1. The payroll register is a separate payroll record that is kept on each employee. grass clippings at the curb for pickup because local landfills cannot handle the volume. During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. Get exclusive business insights delivered straight to your inbox. Issuance of bonds.} A) Debit R. Sanders Capital, $250,000; Credit Cash, $250, tax Remittance on February 15? Pre-hire questions pertaining to religion, gender, national origin, or age are allowed if: Which of the following forms is used to notify the Payroll Department to add a new employee to the payroll? D. ERISA provides that all employees are eligible to set up their own individual retirement accounts. D) Social Security tax, $188; Medicare tax, $805. Does the ADEA quit protecting employees after the age of 70? the total expenses of the firm and increase the net income of the firm. 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? FIT Payable-liability C) Debit $ C) Garnishment \ 18 D) It is a report that becomes published with other financial reports. C) Asset, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Civilization and its Discontents (Sigmund Freud), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. Find payroll and retirement calculators, plus tax and compliance resources. 28. A. According to Adam Smith, why do the butcher, brewer, and baker provide food for us to buy? What is the amount of the Social Security tax payable? Verify the date and enter General as the reference. Single click the box with the question mark to produce a check, In the following payroll transaction, what is the amount of the net pay? D) It adds complexity to the payroll register. Our online store for HR apps and more; for customers, partners and developers. & \text{ } & \text{ }\\ & \text{ } & \text{ }\\ \text{7. Any boxes Left with a question mark will be automatically graded as incorrect.) D) 401(k) contributions Protection under the provisions of the Age Discrimination in Employment Act begins at what age?? Which of the following is an example of a trade association? A well-kept payroll register is also useful when preparing payroll tax reports, including: A payroll register is a record of payroll information for every employee each pay period. & \text{O} & \text{CO}\\ 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%. In a sample of nine homes, what is the probability that: a.