Under FMLA, the time must be used in one uninterrupted period of time. ADP hires in over 26 countries around the world for a variety of amazing careers. & \text{ } & \text{ }\\ The Federal Insurance Contributions Act covers restrictions on the employment of child labor. B. mark to empty the box For a wrong answer. 21 & \text{ } & \text{ }\\ Correct answer: Option (1) Medicare tax is the correct answer. Explain the use of the "Cumulative" column in the employee's earnings record. BALANCE Using the accounting equation, determine the following amounts: a. Owners equity as of December 31, 2013. B) The income statement Union Dues Payable-liability must it do to recognize the liabilities and expenses? Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. Discover what others say about us. How are the funds used which are provided by FUTA and SUTA? FICA Taxes payable-HI-liability A) It is the fourth entry in the General Journal on that date. Title of report 2. C) It is the fourth repetition of the same entry. A) The income statement During this process, employers reconcile their payroll transactions and make sure that their accounting and recordkeeping practices comply with regulations. Transcribed image text: Columns included in the payroll register to compute net pay may include which of the following? The total of each distribution column shows the total amount of that department's wage expense. Transaction1. $y = -x - 4$. C) Debit Revenue, $250,000; Credit Cash, $250, Health Insurance $ 950. 1. the total expenses of the firm and decrease the net income of the firm. 8. If you are recording it directly into the general ledger or the payroll journal, then use the same line items already noted for the primary payroll journal entry. Which of the following represents the missing Social Security and Medicare taxes, assuming that. b. To which items is information from the payroll register transferred? 41. The town is considering an ordinance that would prohibit putting The other hourly employees receive overtime pay when they work more than 35 hours in one week. C) Debit Health Insurance Payable $13,618; Credit Cash $13,618. A) $1,582. C. National Origin & \text{ } & \text{ }\\ 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. 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? 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. Of the items in the following list, which one (s) should appear in a payroll register? It is quite common to create a manual check, either because an employee was short-paid in the preceding payroll, or because the company is laying off or firing an employee, and so is obligated to pay that person before the next regularly scheduled payroll. The key types of payroll journal entries are noted below. Accounting questions and answers. Listed below are several transactions. The primary payroll journal entry is for the initial recordation of a payroll. Step 2: Working Hours. 2. \ Is it neccessary for an employer who is subject to FICA and FUTA taxes to keep a separate expense account for the taxes under each act? $3,825 of employee withholding ($50,000 X 0.0765), Exempt Salaried Employees Paid Semi-monthly. Social Security tax payable ??? a wrong answer. Compute and record the Kipley Company's SUTA and FUTA contributions. 40. A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. This entry may be avoided if the amount is immaterial. 31. Jan 19 Wages and salaries payable 226 8,134. D) Credit $. D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 A) It is a list of all persons and companies that the company pays money during a period. A company may occasionally print manual paychecks to employees, either because of pay adjustments or employment terminations. C) It must pay its employees for the wages earned as of that date. Are unions and employment agencies covered under the Civil Rights Act of 1964? Describe the main types of records used to collect payroll data. (You may select more than one answer. \end{matrix} Issuance of bonds.} D) the employee's name, social security number, and address FUTA funds are used to pay the state and federal administrative expenses and SUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. C) As expenses The Age Discrimination in Employment Act provides protection to virtually all workers over the age of: Form I-9, which is completed by each employee, deals with: Which of the following acts deals with the minimum wage paid to laborers for contractors on federal government construction contracts? 7. For fill-in-the-blank questions, press or click on the blank space provided. Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. and year-to- date earnings. Use the following information for Questions 19 - 20: D) It may contain whatever accounts the accountant wishes to include. This will decrease 20. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. This will increase the Chapter 6: Analyzing and Journalizing Payroll, , , AP Lang - Television: The Plug-In Drug (T/V), Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition, Alvin A Arens, Mark A Beasley, Randal J Elder, National Association for the Advancement of Colored People. Payroll Test #1 Flashcards | Quizlet Subjects Expert solutions Log in Sign up Payroll Test #1 Term 1 / 66 Does every state have state unemployment laws? D) Debit Health Insurance Payable $27,237; Credit Cash $27,237. A) the firm's payroll checking account information ), What is the total amount of FICA that needs, Earn our Payroll Accounting Certificate of Achievement. What is the current minimum wage under FLSA? Department of branch 4. 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? What is meant by the garnishment of wages? Hours worked. Payment of income taxes.} 29. B) FUTA 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%. Saleofequipmentforcash.TypeofActivityOCashInfloworOutflowCO. From recruitment to retirement, getting the very best out of your people. Whether you operate in multiple countries or just one, we can provide local expertise to support your global workforce strategy. How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. Health Insurance payable 224 13,618. Which basic records are generated in most payroll accounting systems? Whenever employers withhold taxes and deductions from wages, pay employees or deposit tax payments with government agencies, that information should be simultaneously documented in the payroll register. What does the term "billable time" mean as it pertains to payroll accounting? b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. SUTA tax payable 9,481. 13. What are the General Journal entries that should appear on each pay date? Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? C. FLSA When you later pay the withheld taxes and company portion of payroll taxes to the IRS, you then use the following entry to reduce the balance in the cash account, and eliminate the balances in the liability accounts: It is quite common to have some amount of unpaid wages at the end of an accounting period, so you should accrue this expense (if it is material). Identify distinctive compensation plans. A) Both columns contain information about the employer's tax matching responsibilities. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? Its easier to keep accurate payroll records and run reports quickly with payroll software. Manage labor costs and compliance with easy time & attendance tools. Paymentofincometaxes. C) Payroll accounts do not appear on the trial balance because of their changeable nature. C) Social Security tax, $746; Medicare tax, $174. D) Health insurance payable Loantoanotherfirm.12. D) It must wait until the next financial period to record the payroll data. Employers can exempt the following employees from the Family and Medical Leave Act. B) the total gross pay, deductions, and net pay during the period What is your sisters total cost under each of the two plans? False. ls the written record sent to the Payroll Department telling them that a new employee should be added to the payroll called a hiring notice? Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? \text{Transaction} & \text{Type of Activity} & \text{Cash Inflow or Outflow}\\ \hline Does the ADEA quit protecting employees after the age of 70? 4. 54. A) Both documents contain year-to-date totals of taxes. Which of the following is an example of a trade association? \text{3. Union Dues payable 227 4,683. D) It highlights issues and results of seasonal labor. the health Insurance is qualified under Section 125? If a firm accrues the payroll due but not paid at the end of a financial period, what should it do Which of the following laws establishes the minimum wage? At ADP, we are committed to unlocking potential not only in our clients and their businesses, but in our people, our communities and society as a whole. 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. Fast, easy, accurate payroll and tax, so you can save time and money. Your sister currently uses 1,700 minutes and sends 1,600 texts each month. 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. Payroll journal entries are used to record the compensation paid to employees. Purchaseoftreasurystock.14. B) It facilitates accuracy in employee payroll tax computations. Social Security tax payable 221 10,517. C) Alphabetically 5. See Answer. It lists payroll information about each employee, such as hours worked, gross pay, deductionsand net pay. The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. Payroll registers also provide aggregate employee information at a glance, which can be helpful when depositing tax payments, filing tax returns and performing other basic accounting tasks. Factory payroll costs in cash. Wages and salaries payable 226 117,334. Get inspired to begin transforming HR at your company. BALANCE At ADP, security is integral to our products, our business processes and our infrastructure. Fair Labor Standards Act (Federal Wage & Hour Law). 5 pay date: May 5 Payroll Taxes Expense $ 27,671. 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? 20XX: Gross pay $ 27,894. D) It adds complexity to the payroll register. select more than one answer. Basic payroll register templates can be found online or created in programs like Excel. Current period taxable earnings for FICA taxes are as. Paymentofincometaxes.9. 7. Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). D) Form 941 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. What information is commonly provided by a job-seeker on the application for employment form? 59. Compute and record the employee's SUTA contributions. e. None of the above. 38. Garnishment $ 450. Which report contains employer share tax expenses for a period? 9. Using the payroll register, compute the employee gross pay and net pay using 35 hours as the standard workweek for all employees except Mary Shangraw, who works 20 hours per week and receives overtime for any time worked past that point. For superior accuracy, many smalland largebusinesses rely on automated digital payroll solutions, such as those offered by ADP, which can integrate with accounting software and other programs. E. 65, Which of the following is not a provision of the Fair Labor Standards Act? How are employees who do not have bank accounts paid by an employer who uses an electronic fundstransfer system for payroll. Learn more about the senior executives who are leading ADPs business. Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts). Jul 1 Wages and salaries payable 226 113,562. D) The balance sheet The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. A payroll register lists all basic information related to employee take-home pay. A payroll register can also . Copyright 2023 AccountingCoach, LLC. Does every state have both federal and state unemployment laws? Yes, Employees FIT Payable . Report changes to your business. Exempt salaried employees are often paid for their work right up to payday. This will increase depositor, what entry Should appear on November 15 for the remittance of the month's Social Enchanted Creations has the following data in its Federal withholding tax payable General Ledger What portions of an employee's wages are exempt from a federal tax levy. 5. All earnings are taxable. 1. 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. Direct materials usage. It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. B) Gross pay What is your sisters total cost under each of the two plans? statement? Federal withholding tax payable 220 $ ??? B) Both documents contain information about the employee's address and job title. In a sample of nine homes, what is the probability that: a. D) 401(k) contributions Fair Labor Standards Act What are some examples of secondary sex characteristics? What is the purpose of the Age Discrimination in Employment Act (ADEA)? What is The balance in the account? & \text{ } & \text{ }\\ 14. The W-2 provides all of the information required by the Affordable Care Act. C) Employee pay disbursement and voluntary deduction remittance c. More than five have large-screen TVs? 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? \text{10. At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. Jeremy is single with two withholding allowances. Compute the employer's payroll taxes for the period. D) Employee pay recording and employer share payroll taxes recording 28. Does workers' compensation laws only relate to work-related incidents? When the firm remits its health insurance premium for this pay date, what is the General Journal B) Debit Cash, $250,000; Credit Revenue, $250, How does the payroll register connect with the employees' earnings records? BALANCE DATE DESCRIPTION POST REF. Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. Purchaseoftreasurystock. d. At least seven homes have large-screen TVs? the payroll? We provide payroll, global HCM and outsourcing services in more than 140 countries. May 14 Wages and salaries payable 226 117,334. 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. Payroll-Operating expense-liability Which of the following is NOT part of the social security program? & \text{ } & \text{ }\\ 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? Switching payroll service providers made easy. below deck mediterranean 2022 cast. General Journal entry to record this transaction? ls the Federal Government covered under the Civil Rights Act of 1964? The payroll register contains ________. Paymentofalong-termnotepayable. 15. A) The statement of owners' equity C. 40 Besides payroll information, the payroll register contains ________. Employers use the employee's earnings record in preparing ___. Recorded as a liability for the employer in the payroll entry. Book the entry on the date paychecks are distributed. Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. posted an additional $4,390 on its October 31 pay date. 15. Why does company profitability decrease in direct proportion to the payroll expenses? D) The transaction appears on page four of the General Journal. Because of the amount of sensitive information included in the payroll register, access tends to be limited only to those authorized within a company, such as the payroll manager. B. C) Employee signature B) It is employee labor that does not pertain to labor on customer jobs. Gross wages of $500.00 + employer's portion of FICA $38.25 ($500.00 X employer rate of 7.65%) + unemployment tax of $24.00 + worker comp insurance of $5.00. A) As assets True Which of the following is true of employee's earnings record? mark for a correct Answer and double click the box with the question mark to empty the box for Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business. Free True False Q03 Computing the sum of rows and columns is known by the term Multiple Choice Q04 Where is one place that information from the payroll register would not be transferred? C) Credit $1, At ADP, we believe sports and business both require the right approach. Paymentofalong-termnotepayable.13. 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. D) A debit balance will increase the income of the firm's income statement. Saleofequipmentforanotereceivable. What are the main kinds of information contained in a payroll register? C) Because payroll represents a liability and an expense of the business. C) It is a report designed for external stakeholders. B) It contains a detailed listing of every transaction during a period. b. Keeping vital payroll data up to date and easily accessible is essential for employers to address unexpected discrepancies without confusion. B) It is an individual register maintained for each employee, listing of all the payroll information. Which items would be debited in the General Journal entry to record the employees' share of serves as a backup in the event of computer failure. Oct 27 Wages and salaries payable 226 202,671. Rate of pay 8. \text{9. C) It must remain in balance at all times. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services. question mark Will be automatically graded as incorrect.) Application of overhead to goods in process. All rights reserved.AccountingCoach is a registered trademark. Saleofequipmentforanotereceivable.10. A) Employee pay accrual and employee pay disbursement Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll,one for the employer's share of the taxes. Gross pay and net pay. How do the Stanford-Binet and Wechsler tests differ? Under FLMA, do any states have paid a family leave plan? 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. Federal withholding tax payable 220 $ 2,207. A payroll register is a valuable tool that records employee wage information for each pay period and pay date. Health Insurance payable 224 8,375. May criminal background checks be used by all employers for any person? The employers total expense for Marys employment during the week is. Payroll registers are typically a series ofsimple charts (one for each employee during a given pay period) that include such information as: Note that payroll recordkeeping laws differ across jurisdictions. Saleofequipmentforanotereceivable. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. What options might Hazel consider if the What is the amount of the 401(k) contributions for the pay date? A) It should create a reminder about the accrual to ensure accuracy of computations on the next In what order are accounts presented on the trial balance? "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. A) A debit balance will increase the expenses of the firm's income statement. Saleofequipmentforcash. Security taxes? Use the following information for Questions 15 - 17: What si the primary purpose of the Employee Retirement Income Security Act (ERISA)? The ___ is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period. The first answer is provided as an example. Journal entries? What is the role of enhancing qualities in the conceptual framework? Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. Click here to learn more. 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. C) Labor reports Use rates of 6.2 percent for the employer's shareof the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. DEBIT CREDIT DEBIT CREDIT Which of the following is not a provision of FLSA? 401(k) contributions payable 223 454. c. McNamara-O'Hara Service Contract Act At a minimum, payroll registers help businesses: But thats hardly the extent of how beneficial a payroll register can be. the total incomes of the firm and decrease the net income of the firm. This entry is then reversed in the following accounting period, so that the initial recordation entry can take its place. 53. Required: 1. 1. B) As equity Payroll registers include all of the information in a pay period for all employees. period. After recording this entry, reverse it at the beginning of the following accounting period, and then record the actual payroll expense (as just described under the "Primary Payroll Journal Entry" section whenever it occurs. B) It must create an adjusting entry to recognize the payroll accrual. What is true about the trial balance? Paymentofemployeesalaries.OCO2. B) General Journal Purchase of rent in advance.} A) $2,253. The higher payroll Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries. Authorize a power of attorney. D) Credit $30. 3. \text{15. Net pay $ 19,747. Continuing Payroll Problem-B OLNEY COMPANY, INC. Want more exclusive business insights like this delivered to your inbox? These liabilities accompany every payroll you run. Marital status & number of withholding allowances 6. FUTA Taxes Payable-liability C) It should disburse the accrued pay to the employees. For what reason are "distribution" columns sometimes provided in the payroll register? Does the Federal Income Tax Withholding Law require all employment data to be kept permanently? 64. E. All of the above are provisions of ERISA. Purchaseofrentinadvance.4. C) It designates where labor is used in a firm. in its Federal withholding tax payable account. Get exclusive business insights delivered straight to your inbox. 6. Payroll data for the current week are as follows: hours worked, 46; federal income taxwithheld, $110; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment 4. Collectionofanaccountreceivable. Federal withholding tax payable 220 $ 50,725. Protection under the provisions of the Age Discrimination in Employment Act begins at what age?? With e-Services for Business, you can: Register, close, or re-open an employer payroll tax account. Apr 16 J23 16,495 32. To prohibit discrimination on the basis of age in the employment practices of employer. D) One side of the equation must equal zero. Ring up sales and take payments in style with the sleek touchscreen Register device Make it mobile Every Register comes with a PAX A920 terminal to use as a mobile credit card reader Add on wireless POS hardware Complete your hardware suite with Bluetooth barcode scanners, receipt printers and cash drawers Hardware that won't hold you back