Exam 6: Analyzing and Journalizing Payroll

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

If employees must contribute to the state unemployment fund, this deduction should be shown in the payroll tax entry.

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

Under the Uniform Unclaimed Property Act, any unclaimed paychecks must be turned over to the state after the next payday.

The wage and salaries expense account is an operating expense account debited for total net pay each payroll period.

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

Posting to the general ledger for payroll entries is done only at the end of each calendar year.

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

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

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