Exam 6: Analyzing and Journalizing Payroll

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.

Which of the following is not an expense of the employer?

In the adjusting entry to accrue wages at the end of the accounting period, there is no need to credit any tax withholding accounts.

Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll.

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?

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

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

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

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

At the time that the entry is made to record the employer's payroll taxes, the SUTA tax is recorded at the net amount 0.6%).

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.

Tax withholdings from employees' pays reduce the amount of the debit to Salary Expense in the payroll entry.

The FUTA tax part of the payroll tax entry is recorded at the net amount 0.6%) of the taxable payroll.

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

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

When the federal tax deposit is made, the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

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%).

Under the Consumer Credit Protection Act, disposable earnings are the earnings remaining after any deductions for health insurance.