Payroll Accounting, Taxes, and Reports. 2 4. Payroll Register.
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Payroll Accounting, Taxes, and Reports
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Transcript of Payroll Accounting, Taxes, and Reports. 2 4. Payroll Register.
Payroll Accounting, Taxes, and Reports
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New accounts
4 LESSON 13-1
6. Write the titles of accounts credited.
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page 371
December 15. Paid cash for payroll, $4,609.46. Check No. 335.
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1. Write the date.
2. Write the title of the account debited.
3. Write the check number.
4. Write the account debited. 7. Write the amounts credited.
5. Write the total amount paid to employees.
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In addition to paying social security and Medicare taxes (employers pay same rate as employee) employers must also pay:
Federal unemployment tax – a federal tax used for state and federal administrative expenses of the unemployment program
State unemployment tax – a state tax used to pay benefits to unemployed workers
Unemployment taxable earnings – the total earnings subject to unemployment tax (calculated at the end of a pay period) - $7,000 tax base per employee
6 LESSON 13-2
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page 374
111. Enter accumulated earnings and total earnings for each employee.
2. Enter unemployment taxable earnings.
3. Total the Unemployment Taxable Earnings column.
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LESSON 13-2
FederalUnemployment
Tax=
FederalUnemployment
Tax Rate×
UnemploymentTaxableEarnings
StateUnemployment
Tax=
StateUnemployment
Tax Rate×
UnemploymentTaxableEarnings
UNEMPLOYMENT TAXES page 375
$6.32=0.8%×$790.00
$42.66=5.4%×$790.00
8 LESSON 13-2
page 376
December 15. Recorded employer payroll taxes expense, $485.92, for the semimonthly pay period ended December 15. Taxes owed are: social security tax, $354.11; Medicare tax, $82.83; federal unemployment tax, $6.32; state employment tax, $42.66. Memorandum No. 63.
(continued on next slide)New accounts
9 LESSON 13-2
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55
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page 376
4. Write the debit amount.1. Write the date.
5. Write the titles of the liability accounts credited.
2. Write the title of the expense account debited.
6. Write the credit amounts.3. Write the memorandum number.
(continued from previous slide)
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Form W-2 – Government form (IRS) that reports employee annual earnings and withholdings (due to employee by 1/31/--
Form 941 – Quarterly federal tax return completed by an employer showing FIT, Social security, and Medicare tax due to the government
Form W-3 – form sent to the Social Security Administration by February 28 reporting previous year’s earnings and payroll taxes withheld
11 LESSON 13-3
page 378
12 LESSON 13-3
page 379(continued on next slide)
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1. Heading 2. Number of employees
13 LESSON 13-3
page 379(continued on next slide)
3. Total quarterly earnings
4. Income tax withheld
5. Employee and employer social security and Medicare taxes 7. Total taxes
6. Social security plus Medicare taxes
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14 LESSON 13-3
page 379(continued from previous slide)
88 88 8899
8. Total taxes for each month 9. Total taxes
15 LESSON 13-3
page 381
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Deposit – the payment of payroll taxes with the government (how often determined by 2 amounts)
Lookback period – The 12-month period that ends on June 30th of the prior year
All new employers start with a monthly deposit period
17 LESSON 13-4
page 383
18 LESSON 13-4
page 384
19 LESSON 13-4
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page 385
January 15. Paid cash for liability for employee income tax, $757.00; social security tax, $1,451.38; and Medicare tax, $339.42; total, $2,547.80. Check No. 347.
1. Write the date.
2. Write the titles of the three accounts debited.
3. Write the check number.
4. Write the debit amounts.
5. Write the amount of the credit.
20 LESSON 13-4
page 386
21 LESSON 13-4
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page 387
January 31. Paid cash for federal unemployment tax liability for quarter ended December 31, $34.60. Check No. 367.
1. Write the date.
5. Write the amount of the credit to Cash.
4. Write the debit amount.
3. Write the check number.
2. Write the title of the account debited.
22 LESSON 13-4
page 387
January 31. Paid cash for state unemployment tax liability for quarter ended December 31, $233.55. Check No. 368.
1. Date
5. Credit amount
4. Debit amount
3. Check number
2. Account debited
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