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Accounting I Chapter 14 – Payroll Accounting, Taxes, & Reports.

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Presentation on theme: "Accounting I Chapter 14 – Payroll Accounting, Taxes, & Reports."— Presentation transcript:

1 Accounting I Chapter 14 – Payroll Accounting, Taxes, & Reports

2 PAYROLL REGISTER Lesson 14-1, page 332

3 ANALYZING PAYMENT OF PAYROLL Lesson 14-1, page 333

4 JOURNALIZING PAYMENT OF A PAYROLL December 15. Paid cash for semimonthly payroll, $ (total payroll, $3,803.75, less deductions: employee income tax, $273.00; social security tax, $247.26; Medicare tax, $57.07; health insurance premiums, $182.40; U.S. Savings Bonds, $35.00; United Way donations, $20.00). Check No Accounts Affected Salary Expense Employee Income Tax Payable Social Security Tax Payable Medicare Tax Payable Health Insurance Premiums Payable U.S. Savings Bond Payable United Way Donations Payable Cash Entered Debit side Credit side Debit side Credit side Change Increased Decreased Lesson 14-1, page 334 Classification Expense Liability Asset

5 JOURNALIZING PAYMENT OF A PAYROLL Lesson 14-1, page Write the check number. 1. Write the date. 4.Write the amount debited to Salary Expense. 2.Write the title of the account debited. 5.Write the amount credited to Cash. 6. Write the titles of the accounts credited. 7.Write the credit amounts. 4 76

6 Work Together & On Your Own – Page 335

7 T ERMS REVIEW federal unemployment tax state unemployment tax Lesson 14-2, page 340

8 T ERMS REVIEW Federal Unemployment Tax A federal tax used for state & federal administrative expenses of the unemployment program. Lesson 14-2, page 338

9 T ERMS REVIEW State Unemployment Tax A state tax used to pay benefits to unemployed workers. Lesson 14-2, page 338

10 1. Enter accumulated earnings and total earnings for each employee. UNEMPLOYMENT TAXABLE EARNINGS Lesson 14-2, page Total the unemployment taxable earnings column. 2.Enter unemployment taxable earnings.

11 UNEMPLOYMENT TAXES UnemploymentFederal Federal Taxable Unemployment Unemployment Earnings  Tax Rate=Tax $  0.8%=$1.47 Lesson 14-2, page 338 UnemploymentState State Taxable Unemployment Unemployment Earnings  Tax Rate=Tax $  5.4%=$9.92 Calculate Unemployment Taxes—State   Calculate Unemployment Taxes—Federal  

12 Unemployment Tax Payable—Federal Medicare Tax Payable Unemployment Tax Payable—State Social Security Tax PayablePayroll Taxes Expense JOURNALIZING EMPLOYER PAYROLL TAXES December 15. Recorded employer payroll taxes expense, $315.72, for the semimonthly pay period ended Dec. 15. Taxes owed are: social security tax, $247.26; Medicare tax, $57.07; federal unemployment tax, $1.47; state unemployment tax, $9.92. Memorandum No. 63. Accounts Affected Payroll Taxes Expense Soc. Security Tax Pay. Medicare Tax Payable Unemp. Tax Pay.—Fed. Unemp. Tax Pay.—State Entered Debit side Credit side Change Increased Lesson 14-2, page 339 Classification Expense Liability normal balance normal balance normal balance normal balance 9.92 normal balance 1.47   

13 JOURNALIZING EMPLOYER PAYROLL TAXES Lesson 14-2, page Write the memorandum number. 1. Write the date. 4.Write the debit amount. 2.Write the expense account debited. 5.Write the titles of the liability accounts credited. 6.Write the credit amounts. 6

14 Work Together & On Your Own – Page 340

15 EMPLOYER ANNUAL REPORT TO EMPLOYEES OF TAXES WITHHELD Lesson 14-3, page 341

16 EMPLOYER’S QUARTERLY FEDERAL TAX RETURN Lesson 14-3, page Total Quarterly Earnings 1. Heading 4.Income Tax Withheld 2.Number of Employees 5.Employee and Employer Social Security and Medicare Taxes 6. Social Security plus Medicare Taxes 7.Total Taxes 8.Total Taxes for Each Month 9.Total Taxes

17 PREPARING EMPLOYER’S QUARTERLY FEDERAL TAX RETURN Lesson 14-3, page 343 Total Earnings  Tax Rate=Tax Social Security$22,  13%=$2, Medicare$22, %=$ Employee Employer Social Federal IncomeSecurity and Security andFederal Tax Tax Withheld+Medicare Tax+Medicare Tax=Liability Calculate Social Security and Medicare Taxes     Dec. 1-15$ $ $304.33= Dec $ $302.08=$ Totals$ =$1,754.82

18 EMPLOYER ANNUAL REPORTING OF PAYROLL TAXES Lesson 14-3, page 344

19 Work Together & On Your Own – Page 345

20 FORM 8109, FEDERAL DEPOSIT COUPON Lesson 14-4, page 347

21 1, Cash Medicare Tax PayableSocial Security Tax PayableEmployee Inc. Tax Payable JOURNALIZING PAYMENT OF LIABILITY FOR EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX January 15. Paid cash for liability for employee income tax, $542.00; social security tax, $985.40; and Medicare tax, $227.42; total, $1, Check No Accounts Affected Employee Inc. Tax Pay. Social Security Tax Pay. Medicare Tax Payable Cash Entered Debit side Credit side Change Decreased Lesson 14-4 page 348 Classification Liability Asset normal balance normal balance normal balance   

22 JOURNALIZING PAYMENT OF LIABILITY FOR EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX Lesson 14-4, page Write the check number. 1. Write the date. 4.Write the three debit amounts. 2.Write the title of the three accounts debited. 5.Write the amount of the credit to Cash.

23 PAYING THE LIABILITY FOR FEDERAL UNEMPLOYMENT TAX Lesson 14-4, page 349

24 CashUnemployment Tax Payable—Federal JOURNALIZING PAYMENT OF LIABILITY FOR FEDERAL UNEMPLOYMENT TAX January 31. Paid cash for federal unemployment tax liability for quarter ended December 31, $8.40. Check No Accounts Affected Unemployment Tax Payable—Federal Cash Entered Debit side Credit side Change Decreased Lesson 14-4, page 350 Classification Liability Asset normal balance 8.40 normal balance 8.40  

25 JOURNALIZING PAYMENT OF LIABILITY FOR FEDERAL UNEMPLOYMENT TAX Lesson 14-4, page Write the check number. 1. Write the date. 4.Write the debit amount. 2.Write the title of the account debited. 5.Write the amount of the credit to Cash.

26 JOURNALIZING PAYMENT OF LIABILITY FOR STATE UNEMPLOYMENT TAX Lesson 14-4, page Write the check number. 1. Write the date. 4.Write the debit amount. 2.Write the title of the account debited. 5.Write the amount of the credit to Cash

27 Work Together & On Your Own – Page 351


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