Accounting I

1
Accounting I

• Chapter 14 Payroll Accounting, Taxes, Reports

2
PAYROLL REGISTER
Lesson 14-1, page 332
3
ANALYZING PAYMENT OF PAYROLL
Lesson 14-1, page 333
4
JOURNALIZING PAYMENT OF A PAYROLL
December 15. Paid cash for semimonthly payroll,
2989.02 (total payroll, 3,803.75, less
deductions employee income tax, 273.00 social
security tax, 247.26 Medicare tax, 57.07
health insurance premiums, 182.40 U.S. Savings
Bonds, 35.00 United Way donations, 20.00).
Check No. 312.
Accounts Affected Salary Expense Employee Income
Tax Payable Social Security Tax Payable Medicare
Tax Payable Health Insurance Premiums
Payable U.S. Savings Bond Payable United Way
Donations Payable Cash
Entered Debit side Credit side Credit
side Debit side Credit side Credit side Credit
side Credit side
Change Increased Increased Increased Increased
Increased Increased Increased Decreased
Classification Expense Liability Liability Liabili
ty Liability Liability Liability Asset
Lesson 14-1, page 334
5
JOURNALIZING PAYMENT OF A PAYROLL
2
5
3
1
1. Write the date.
2. Write the title of the account debited.
3. Write the check number.
4. Write the amount debited to Salary Expense.
5. Write the amount credited to Cash.
6. Write the titles of the accounts credited.
7. Write the credit amounts.
Lesson 14-1, page 334
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Work Together On Your Own Page 335
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TERMS REVIEW
federal unemployment tax state unemployment tax
Lesson 14-2, page 340
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TERMS REVIEW
Federal Unemployment Tax
A federal tax used for state federal
administrative expenses of the unemployment
program.
Lesson 14-2, page 338
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TERMS REVIEW
State Unemployment Tax
A state tax used to pay benefits to unemployed
workers.
Lesson 14-2, page 338
10
UNEMPLOYMENT TAXABLE EARNINGS
2
1
1
3
1. Enter accumulated earnings and total earnings
for each employee.
2. Enter unemployment taxable earnings.
3. Total the unemployment taxable earnings column.
Lesson 14-2, page 337
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UNEMPLOYMENT TAXES
Unemployment Federal Federal Taxable
Unemployment Unemployment Earnings ? Tax
Rate Tax
183.75 ? 0.8 1.47
Unemployment State State Taxable
Unemployment Unemployment Earnings ? Tax
Rate Tax
183.75 ? 5.4 9.92
Lesson 14-2, page 338
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JOURNALIZING EMPLOYER PAYROLL TAXES
December 15. Recorded employer payroll taxes
expense, 315.72, for the semimonthly pay period
ended Dec. 15. Taxes owed are social security
tax, 247.26 Medicare tax, 57.07 federal
unemployment tax, 1.47 state unemployment tax,
9.92. Memorandum No. 63.
Accounts Affected Payroll Taxes Expense Soc.
Security Tax Pay. Medicare Tax Payable Unemp. Tax
Pay.Fed. Unemp. Tax Pay.State
Entered Debit side Credit side Credit
side Credit side Credit side
Change Increased Increased Increased Increased
Increased
Classification Expense Liability Liability Liabili
ty Liability
normal balance
normal balance
normal balance
?
?
?
247.26
normal balance
normal balance
?
?
9.92
1.47
Lesson 14-2, page 339
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JOURNALIZING EMPLOYER PAYROLL TAXES
2
3
4
1
6
5
1. Write the date.
2. Write the expense account debited.
3. Write the memorandum number.
4. Write the debit amount.
5. Write the titles of the liability accounts
credited.
6. Write the credit amounts.
Lesson 14-2, page 339
14
Work Together On Your Own Page 340
15
EMPLOYER ANNUAL REPORT TO EMPLOYEES OF TAXES
WITHHELD
Lesson 14-3, page 341
16
EMPLOYERS QUARTERLY FEDERAL TAX RETURN
1. Heading
2. Number of Employees
1
3. Total Quarterly Earnings
4. Income Tax Withheld
5. Employee and Employer Social Security and
Medicare Taxes
2
4
6. Social Security plus Medicare Taxes
5
6
7. Total Taxes
7
8. Total Taxes for Each Month
9. Total Taxes
9
Lesson 14-3, page 342
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PREPARING EMPLOYERS QUARTERLY FEDERAL TAX RETURN
Total Earnings ? Tax Rate Tax
Social Security 22,575.00 ? 13 2,934.75 Medic
are 22,575.00 3 677.25
Employee Employer Social
Social Federal Income Security and Security
and Federal Tax Tax Withheld Medicare
Tax Medicare Tax Liability
Dec. 1-15 273.00 304.33 304.33 881.66 Dec
. 16-31 269.00 302.08 302.08 873.16 Total
s 542.00 606.41 606.41 1,754.82
Lesson 14-3, page 343
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EMPLOYER ANNUAL REPORTING OF PAYROLL TAXES
Lesson 14-3, page 344
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Work Together On Your Own Page 345
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FORM 8109, FEDERAL DEPOSIT COUPON
Lesson 14-4, page 347
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JOURNALIZING PAYMENT OF LIABILITY FOR EMPLOYEE
INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX
January 15. Paid cash for liability for employee
income tax, 542.00 social security tax,
985.40 and Medicare tax, 227.42 total,
1,754.82. Check No. 330.
Accounts Affected Employee Inc. Tax Pay. Social
Security Tax Pay. Medicare Tax Payable Cash
Entered Debit side Debit side Debit side
Credit side
Change Decreased Decreased Decreased Decreased
Classification Liability Liability Liability Asset
normal balance
normal balance
normal balance
?
?
?
normal balance
?
Lesson 14-4 page 348
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JOURNALIZING PAYMENT OF LIABILITY FOR EMPLOYEE
INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX
1
3
5
4
2
1. Write the date.
2. Write the title of the three accounts debited.
3. Write the check number.
4. Write the three debit amounts.
5. Write the amount of the credit to Cash.
Lesson 14-4, page 348
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PAYING THE LIABILITY FOR FEDERAL UNEMPLOYMENT TAX
Lesson 14-4, page 349
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JOURNALIZING PAYMENT OF LIABILITY FOR FEDERAL
UNEMPLOYMENT TAX
January 31. Paid cash for federal unemployment
tax liability for quarter ended December 31,
8.40. Check No. 343.
Entered Debit side Credit side
Accounts Affected Unemployment Tax
PayableFederal Cash
Change Decreased Decreased
Classification Liability Asset
normal balance
normal balance
?
?
Lesson 14-4, page 350
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JOURNALIZING PAYMENT OF LIABILITY FOR FEDERAL
UNEMPLOYMENT TAX
5
1
3
4
2
1. Write the date.
2. Write the title of the account debited.
3. Write the check number.
4. Write the debit amount.
5. Write the amount of the credit to Cash.
Lesson 14-4, page 350
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JOURNALIZING PAYMENT OF LIABILITY FOR STATE
UNEMPLOYMENT TAX
5
1
3
4
2
1. Write the date.
2. Write the title of the account debited.
3. Write the check number.
4. Write the debit amount.
5. Write the amount of the credit to Cash.
Lesson 14-4, page 350
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Work Together On Your Own Page 351