Principles of Financial Accounting · free preview
Recording Payroll Transactions
Payroll accounting layers gross wages into withholdings that become liabilities to the government, net pay to employees, and employer taxes that add further expense, with every element journaled through the payment cycle.
1. Gross wages to net pay
Gross wages to net pay
2. The employer's own taxes
The employer's own taxes
3. Remittance and reporting
Remittance and reporting
4. Internal control over payroll
Internal control over payroll
5. Withholding classification
Amounts withheld from employee paychecks for federal income tax and FICA are recorded as what?
6. Employer taxes entry
A company's employer payroll taxes for the period total 2,100 dollars. Which entry applies?
7. Net pay computation
Gross wages are 20,000 dollars and withholdings total 4,000 dollars. What is net pay?
8. Payroll control purpose
Why does payroll control require supervisors to approve time records?
9. Employer matching name
The combined Social Security and Medicare taxes are known by the four-letter abbreviation ____.
10. Labor cost total
Gross wages are 20,000 dollars and employer payroll taxes are 2,100 dollars. Compute the company's total labor cost for the period in dollars, number only.
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