Payroll Accounting, Taxes, and Reports

1
Chapter 13

• Payroll Accounting, Taxes, and Reports

2
4. Payroll Register
3
Analyzing payment of a payroll
New accounts
4
JOURNALIZING PAYMENT OF A PAYROLL
page 371
December 15. Paid cash for payroll, 4,609.46.
Check No. 335.
2
1
3
4
5
6
7
1. Write the date.
5. Write the total amount paid to employees.
2. Write the title of the account debited.
6. Write the titles of accounts credited.
3. Write the check number.
7. Write the amounts credited.
4. Write the account debited.
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4. Employer payroll taxes
In addition to paying social security and
Medicare taxes (employers pay same rate as
employee) employers must also pay Federal
unemployment tax a federal tax used for state
and federal administrative expenses of the
unemployment program State unemployment tax
a state tax used to pay benefits to unemployed
workers Unemployment taxable earnings the
total earnings subject to unemployment tax
(calculated at the end of a pay period) - 7,000
tax base per employee
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UNEMPLOYMENT TAXABLE EARNINGS
page 374
2
3
1. Enter accumulated earnings and total earnings
for each employee.
2. Enter unemployment taxable earnings.
3. Total the Unemployment Taxable Earnings column.
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UNEMPLOYMENT TAXES
page 375
6.32

0.8

790.00
42.66

5.4

790.00
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JOURNALIZING EMPLOYER PAYROLL TAXES
page 376
(continued on next slide)
New accounts
December 15. Recorded employer payroll taxes
expense, 485.92, for the semimonthly pay period
ended December 15. Taxes owed are social
security tax, 354.11 Medicare tax, 82.83
federal unemployment tax, 6.32 state employment
tax, 42.66. Memorandum No. 63.
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JOURNALIZING EMPLOYER PAYROLL TAXES
(continued from previous slide)
page 376
2
4
1
3
5
6
4. Write the debit amount.
1. Write the date.
5. Write the titles of the liability accounts
credited.
2. Write the title of the expense account debited.
6. Write the credit amounts.
3. Write the memorandum number.
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5. Reporting and paying withholding and payroll
taxes
Form W-2 Government form (IRS) that reports
employee annual earnings and withholdings (due to
employee by 1/31/-- Form 941 Quarterly federal
tax return completed by an employer showing FIT,
Social security, and Medicare tax due to the
government Form W-3 form sent to the Social
Security Administration by February 28 reporting
previous years earnings and payroll taxes
withheld
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EMPLOYER ANNUAL REPORT TO EMPLOYEES OF TAXES
WITHHELD
page 378
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EMPLOYERS QUARTERLY FEDERAL TAX RETURN
page 379
(continued on next slide)
1
2
1. Heading
2. Number of employees
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EMPLOYERS QUARTERLY FEDERAL TAX RETURN
page 379
(continued on next slide)
3. Total quarterly earnings
6. Social security plus Medicare taxes
4. Income tax withheld
5. Employee and employer social security and
Medicare taxes
7. Total taxes
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EMPLOYERS QUARTERLY FEDERAL TAX RETURN
page 379
(continued from previous slide)
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8. Total taxes for each month
9. Total taxes
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EMPLOYER ANNUAL REPORTING OF PAYROLL TAXES
page 381
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5. Reporting and paying withholding and payroll
taxes
Deposit the payment of payroll taxes with the
government (how often determined by 2
amounts) Lookback period The 12-month period
that ends on June 30th of the prior year All new
employers start with a monthly deposit period
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PAYING THE LIABILITY FOR EMPLOYEE INCOME TAX,
SOCIAL SECURITY TAX, AND MEDICARE TAX
page 383
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FORM 8109, FEDERAL DEPOSIT COUPON
page 384
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JOURNALIZING PAYMENT OF LIABILITY FOR EMPLOYEE
INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX
page 385
January 15. Paid cash for liability for employee
income tax, 757.00 social security tax,
1,451.38 and Medicare tax, 339.42 total,
2,547.80. Check No. 347.
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5
3
2
4
1. Write the date.
3. Write the check number.
2. Write the titles of the three accounts debited.
4. Write the debit amounts.
5. Write the amount of the credit.
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PAYING THE LIABILITY FOR FEDERAL UNEMPLOYMENT TAX
page 386
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JOURNALIZING PAYMENT OF LIABILITY FOR FEDERAL
UNEMPLOYMENT TAX
page 387
January 31. Paid cash for federal unemployment
tax liability for quarter ended December 31,
34.60. Check No. 367.
1
2
3
4
5
1. Write the date.
2. Write the title of the account debited.
3. Write the check number.
4. Write the debit amount.
5. Write the amount of the credit to Cash.
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JOURNALIZING PAYMENT OF LIABILITY FOR STATE
UNEMPLOYMENT TAX
page 387
January 31. Paid cash for state unemployment tax
liability for quarter ended December 31, 233.55.
Check No. 368.
1
2
3
4
5
1. Date
2. Account debited
3. Check number
4. Debit amount
5. Credit amount