Presentation is loading. Please wait.

Presentation is loading. Please wait.

LESSON 13-4 PAYING WITHHOLDING AND PAYROLL TAXES.

Similar presentations


Presentation on theme: "LESSON 13-4 PAYING WITHHOLDING AND PAYROLL TAXES."— Presentation transcript:

1 LESSON 13-4 PAYING WITHHOLDING AND PAYROLL TAXES

2 PAYING THE LIABILITY FOR EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX Must pay taxes to government Two amounts determine how often deposits are made: ◦Amount of payroll taxes collected during current deposit period ◦Amount of payroll taxes owed during a prior 12-month period (lookback period)

3 FORM 8109, FEDERAL DEPOSIT COUPON Monthly depositor ◦Deposited by the 15 th of the following month

4 JOURNALIZING PAYMENT OF LIABILITY FOR EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX 1 2 3 4 5 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. 1.Write the date. 2.Write the titles of the three accounts debited. 3.Write the check number. 4.Write the debit amounts. 5.Write the amount of the credit.

5 PAYING THE LIABILITY FOR FEDERAL UNEMPLOYMENT TAX Unemployment taxes are paid by the end of the month following each quarter

6 JOURNALIZING PAYMENT OF LIABILITY FOR FEDERAL UNEMPLOYMENT TAX 12345 January 31. Paid cash for federal unemployment tax liability for quarter ended December 31, $34.60. Check No. 367. 1. Write the date. 5. Write the amount of the credit to Cash. 4. Write the debit amount. 3. Write the check number. 2. Write the title of the account debited.

7 JOURNALIZING PAYMENT OF LIABILITY FOR STATE UNEMPLOYMENT TAX January 31. Paid cash for state unemployment tax liability for quarter ended December 31, $233.55. Check No. 368. 1. Date 5. Credit amount 4. Debit amount 3. Check number 2. Account debited 12345

8 Problems Work Together 13-4 (Text pg. 389) On Your Own 13-4 page 389


Download ppt "LESSON 13-4 PAYING WITHHOLDING AND PAYROLL TAXES."

Similar presentations


Ads by Google