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

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). -Form 8109 is used to make deposits.

Prepare the general journal entry to record the payment to the Federal Treasury. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

The employer pays the same amount as the employee for Federal Unemployment taxes.

Compute the total federal income tax. ________

The look-back period is used to determine whether:

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 deductions. ________

Wages and Salaries Payable would be used to record:

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 employer records deductions from the employee's paycheck:

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). -Form 941 is filed:

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). -Form 940 is used by businesses that employ workers in multiple states.

Information to prepare W-2 forms can be obtained from individual employee records.

Why are the employee deductions recorded as payables on the employer's books?

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 federal income tax. ________

Prepare the general journal entry to record the employer's payroll tax expense. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

Prepare the general journal entry to record the payment of the retirement fund withholdings. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

The balance in the Wages and Salaries Expense account is equal to net pay.

What is debited if State Unemployment Tax Payable (SUTA)is credited?

Compute the total deductions. ________

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 taxes are considered 941 taxes?