16 terms

Accounting General Journal, 9E: Chapter 13

Payroll Accounting, Taxes, and Reports
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federal unemployment tax
a federal tax used for state and federal administrative expenses of the unemployment program
lookback period
the 12-month period that ends on June 30th of the prior year
state unemployment tax
a state tax used to pay benefits to unemployed workers
What account title is used to journalize the Total Earnings column of the payroll register?
Salary Expense
What account title is used to journalize the Federal Income Tax column of the payroll register?
Employee Income Tax Payable
What account title is used to journalize the Social Security Tax column of the payroll register?
Social Security Tax Payable
What account title is used to journalize the Medicare Tax column of the payroll register?
Medicare Tax Payable
What is the tax rate Hobby Shack must pay on employees for Social Security?
6.2% of earnings up to a maximum of $87,000 in each calendar year
What is the tax rate Hobby Shack must pay on employees for Medicare?
1.45% of total employee earnings
What is the tax rate Hobby Shack must pay on employees for Federal Unemployment?
0.8% on the first $7,000.00 earned by each employee
What is the tax rate Hobby Shack must pay on employees for State Unemployment?
5.4% on the first $7,000 earned by each employee
What is the amount of each employee's earnings that is subject to federal and state unemployment taxes at Hobby Shack?
The first $7,000.00
When must employers furnish a W-2 statement to their employees?
By January 31
What taxes are included in the quarterly federal tax return filed by the employer?
Federal Income Tax
Social Security Tax
Medicare Tax
For a monthly schedule depositor, when are payroll taxes paid to the federal government?
By the 15th day of the following month
What are two different uses for Form 8109?
For paying payroll taxes and for paying federal unemployment tax