Accounting Chapter 12
Terms in this set (25)
The money paid for employee services
the period covered by a salary payment
The total amount earned by all employees for a pay period
the total pay due for a pay period before deductions
Taxes based on the payroll of a business
a deduction from total earnings for each person legally supported by a taxpayer, including the employee
Social Security Tax
A federal tax paid for old-age, survivors, and disability insurance
a federal tax paid for hospital insurance
The maximum amount of earnings on which a tax is calculated
a business form used to record payroll information
Employee Earnings record
a business form used to record details affecting payments made to an employee
the total earnings paid to an employee after payroll taxes and other deductions
What is Payroll??
It is the total amount earned by all employees for a pay period
How many hours were worked by a hobby shack employee who arrived at 8:29 and departed at 12:02
3 hours and 30mins
How does hobby shack calculate overtime earnings
Overtime hours X Overtime rate
what are the total earnings of a hobby shack employees who worked 44 hours in a week and earns $11 per hour
40x11+ 44 = 440(4x11x1.5= 66.00 )506.00
where does an employer get the information used to determine the amount of federal income tax to witholding from employees earnings
Employee's Withholding Allowance Certificate
Employee federal income tax withholding are based on what two factors?
Employee marital status and number of withholding allowances
Does the employer or employee pay social security tax and Medicare tax?
Both the employer and the employee
What does the payroll register summarize
The payroll register summarizes the payroll for one pay period and shows total earnings payroll withholdings and net pay of all employees
How is net pay calculated
By subtracting total deductions from total earnings
Why do companies complete employee earning records
A business must send a quarterly report to federal and state governments showing employee taxable earnings and taxes withheld from employee earnings.
Why does Hobby Shack have a separate checking account for payroll checks?
To help protect and control payroll payments.
What is the source of the information that is recorded on each employee's payroll check stub?
The payroll register
How do payroll procedures differ from employees who request that their pay be deposited through electronic funds transfer (EFT)?
Individual checks are not written and do not have to be distributed.