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Exam 6: Analyzing and Journalizing Payroll

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Question 21

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An employer will use the payroll register to keep track of an employee's accumulated wages.

A) True
B) False

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Question 22

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

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B) False

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Question 23

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

FICA Taxes Payable-OASDI is a liability account debited for the employer's portion of the FICA tax.

Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to garnishment

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

The entry made at the end of the accounting period to record wages incurred but unpaid is:

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

The payroll taxes incurred by an employer are FICA,FUTA,and SUTA.

Exhibit 6-1 The totals from the first payroll of the year are shown below. ​ $\begin{array} { c c c c c c c } \text { Total } & \text { FICA } & \text { FICA } & \text { FIT } & \text { State } & \text { Union } & \text { Net } \\\text { Earnings } & \text { OASDI } & \text { HI } & \text { W/H } & \text { Tax } & \text { Dues } & \text { Pay } \\\$ 36,195.10 & \$ 2,244.10 & \$ 524.83 & \$ 6,515.00 & \$ 361.95 & \$ 500.00 & \$ 26,049.22 \\\hline\end{array}$ ​ -Refer to Exhibit 6-1.Journalize the entry to deposit the FICA and FIT taxes.

Since vacation time is paid when used,there is no need to accrue this time in a liability account at the end of each accounting period.

The garnishment that takes priority over all others is :​

Every state allows employers to make e-payment options as a condition of employment.

A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages.

Exhibit 6-1 The totals from the first payroll of the year are shown below. ​ $\begin{array} { c c c c c c c } \text { Total } & \text { FICA } & \text { FICA } & \text { FIT } & \text { State } & \text { Union } & \text { Net } \\\text { Earnings } & \text { OASDI } & \text { HI } & \text { W/H } & \text { Tax } & \text { Dues } & \text { Pay } \\\$ 36,195.10 & \$ 2,244.10 & \$ 524.83 & \$ 6,515.00 & \$ 361.95 & \$ 500.00 & \$ 26,049.22 \\\hline\end{array}$ ​ -Refer to Exhibit 6-1.Journalize the adjustment for accrued wages for the following Monday,which is the end of the accounting period.The gross payroll for that day is $7,475.​

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

Under the provisions of the Consumer Credit Protection Act,an employer can discharge an employee simply because the employee's wage is subject to garnishment for a single indebtedness.

In the adjusting entry to accrue wages at the end of the accounting period,there is no need to credit any tax withholding accounts.

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

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