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Accounting Chapter 13 Study Guide

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All the payroll information needed to prepare payroll and tax reports is found on
The payroll register and the employee earnings record
The payroll journal entry is based on the totals of the
Earnings Total column, each deduction column, and the Net Pay column
The Earnings Total column total is journalized as a debit to
Salary Expense
The total of the Federal Income Tax column of a payroll register is credited to
A liability account
The total of the Net Pay column of the payroll register is credited to
An asset account
When a semimonthly payroll is paid, the credit to Cash is equal to the
Net pay of all employees
Employer business taxes are
Expenses
Payroll taxes that are paid by both the employer and the employee are
social security and medicare tax
A federal tax used for state and federal administrative expenses of the unemployment program is the
Federal unemployment tax
A state tax used to pay benefits to unemployed workers is the
State unemployment tax
To record the employer payroll taxes expense, the following accounts are credited
Social security tax Payable, Medicare Tax Payable, unemployment Tax Payable - Federal, and Unemployment Tax Payable - State
Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee and
IRS Form W-2
Each employer is required by law to report payroll taxes on an
IRS Form 941
To record the total federal tax payment for employee income tax, social security tax, and Medicare tax, the account credited is
Cash
To record the payment of federal unemployment tax, the account debited is
A liability account
Paid cash for semimonthly payroll
Debit: Salary Expense
Credit: Cash, Employee Income Tax Payable, Social Security Tax payable, and Medicare Tax Payable
Recorded employer payroll taxes expense
Debit: Payroll Taxes Expense
Credit: Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable - Federal, Unemployment Tax Payable - State
Paid cash for liability for employee income tax, social security tax, and Medicare tax
Debit: Employee Income Tax, Social Security Tax Payable, Medicare Tax Payable
Credit: Cash
Paid cash for federal unemployment tax liability
Debit: Unemployment Tax Payable - Federal
Credit: Cash
Paid cash for state unemployment tax liability
Debit: Unemployment Tax Payable - State
Credit: Cash