Exam 8: Paying, Recording, and Reporting Payroll and Payroll Taxes: the Conclusion of the Payroll Process

Prepare the general journal entry to record the payroll. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

Estimate the annual advance premium for workers' compensation insurance, and record it in general journal form using the following data:

Sweetman's Recording Studio payroll records show the following information: Assume the following: a)FICA: OASDI, 6.2% on a limit of $106,800; Medicare, 1.45% b)Each employee contributes $40 per week for union dues c)State income tax is 5% of gross pay d)Federal income tax is 20% of gross pay Prepare a general journal payroll entry.

Great Lakes Tutoring had the following payroll information on February 28: Assume: FICA tax rates are: OASDI 6.2% on a limit of $106,800 and Medicare 1.45% State Unemployment tax rate is 2% on the first $7,000 Federal Unemployment tax rate is 0.8% on the first $7,000 Using the information above, the journal entry to record the employee's tax expense would include:

Prepare the general journal entry to record the payment of the employees. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

The W-3 is also known as the Transmittal of Income and Tax Statement.

Workers' Compensation Insurance is:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -

Kristi's Mentoring had the following information for the pay period ending September 30: FICA-OASDI applied to the first $106,800 at a rate of 6.2% FICA-Medicare applied at a rate of 1.45% FUTA applied to the first $7,000 at a rate of 0.8% SUTA applied to the first $7,000 at a rate of 5.6% State income tax is 3.8% Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Compute the total retirement. ________

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -The form used to complete the annual federal unemployment report is Form 941.

There is no limit on the amount of taxes paid for SUTA.

Which of the following does not apply to both a W-2 and W-3?

An employer must always use a calendar year for payroll purposes.

Kristi's Mentoring had the following information for the pay period ending September 30: FICA-OASDI applied to the first $106,800 at a rate of 6.2% FICA-Medicare applied at a rate of 1.45% FUTA applied to the first $7,000 at a rate of 0.8% SUTA applied to the first $7,000 at a rate of 5.6% State income tax is 3.8% Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Compute the total regular earnings. ________

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -The payment of FUTA would include:

The individual employee earnings for all employees in a company are summarized on the W-3 form.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -Which form contains information about gross earnings and is given to the employee by January 31?

FICA taxes are levied only on employees.

What type of an account is Wages and Salaries Payable?

When a business starts, what must it obtain that identifies itself to the government?