Exam 6: Analyzing and Journalizing Payroll

Under the provisions of the Consumer Credit Protection Act, an employer can discharge an employee simply because the employee's wage is subject to garnishment for a single indebtedness.

Carmen Gaetano worked 46 hours during this payweek.He is paid time-and-a-half for hours over 40 and his pay rate is $17.90/hour.What was his overtime premium pay for this workweek?

An employee's marital status and number of withholding allowances never appear on the payroll register.

FUTA Taxes Payable is an expense account in which are recorded the employer's federal unemployment taxes.

Since the credit against the FUTA tax (for SUTA contributions) is made on Form 940, the employer's payroll tax entries should include the FUTA tax at the gross amount (6.0%).

Service charges that are passed on to the employee by the employer are not part of the disposable earnings subject to garnishment.

FICA Taxes Payable-OASDI is a liability account debited for the employer's portion of the FICA tax.

Amounts withheld from employees' wages for health insurance are credited to a liability account.

The employee's earnings record provides information for each of the following except:

If wages are paid weekly, postings to the employee's earnings record would be done once a month.

Since the FUTA tax is a social security tax, it can be charged to the same expense account as the other payroll taxes on the employer, the payroll taxes account.

The payroll taxes account is an expense account that is debited for the FICA, FUTA, and SUTA taxes on the employer.

The FICA taxes on the employer represent both business expenses and liabilities of the employer.

FIT Payable is a liability account used to record employees' withheld federal income tax and also the employer's match of that tax.

Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA taxes?

The total of the net amount paid to employees each payday is credited to either the cash account or the salaries payable account.

Union Dues Payable is a liability account credited with the deductions made from union members' wages for their union dues.

Since FUTA tax is paid only once a quarter, the FUTA tax expense is recorded only at the time of payment.

Tips received by employees are not included as disposable earnings subject to garnishment.

Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts.