LESSON 13-1 Recording A Payroll 7/5/2018 LESSON 13-1 Recording A Payroll

PAYROLL REGISTER Total Earnings = Salary Expense page 369 Total Earnings = Salary Expense Deductions all become Payables Net pay = Cash LESSON 13-1

ANALYZING PAYMENT OF A PAYROLL page 370 LESSON 13-1

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. LESSON 13-1

Recording Employer Payroll Taxes LESSON 13-2 Recording Employer Payroll Taxes

Employer Payroll Taxes page 373 Most employers must pay four separate payroll taxes: Employer social security tax** (6.2%) Medicare tax** (1.45%) Federal unemployment tax* (0.8%) State unemployment tax* (5.4%) * Unemployment taxes are paid on the first $7000 of employee earnings each year. **Note: social security and medicare taxes are also paid by the employee LESSON 13-1

UNEMPLOYMENT TAXABLE EARNINGS page 374 2 1 3 1. Enter accumulated earnings and total earnings for each employee. 2. Enter unemployment taxable earnings. 3. Total the Unemployment Taxable Earnings column. LESSON 13-2

UNEMPLOYMENT TAXES Federal Unemployment Tax = page 375 Federal Unemployment Tax = Federal Unemployment Tax Rate × Unemployment Taxable Earnings $790.00 × 0.8% = $6.32 State Unemployment Tax = State Unemployment Tax Rate × Unemployment Taxable Earnings $790.00 × 5.4% = $42.66 LESSON 13-2

JOURNALIZING EMPLOYER PAYROLL TAXES page 376 (continued on next slide) 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. LESSON 13-2

JOURNALIZING EMPLOYER PAYROLL TAXES (continued from previous slide) page 376 2 4 1 3 5 6 1. Write the date. 4. Write the debit amount. 2. Write the title of the expense account debited. 5. Write the titles of the liability accounts credited. 3. Write the memorandum number. 6. Write the credit amounts. LESSON 13-2

TERMS REVIEW federal unemployment tax state unemployment tax page 377 LESSON 13-2 7/5/2018 TERMS REVIEW page 377 federal unemployment tax state unemployment tax LESSON 13-2

Reporting Withholding And Payroll Taxes LESSON 13-3 Reporting Withholding And Payroll Taxes

EMPLOYER ANNUAL REPORT TO EMPLOYEES OF TAXES WITHHELD page 378 LESSON 13-3

EMPLOYER’S QUARTERLY FEDERAL TAX RETURN page 379 (continued on next slide) 1 2 1. Heading 2. Number of employees LESSON 13-3

EMPLOYER’S QUARTERLY FEDERAL TAX RETURN page 379 (continued on next slide) 3 4 5 6 7 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 LESSON 13-3

EMPLOYER’S QUARTERLY FEDERAL TAX RETURN page 379 (continued from previous slide) 9 8 8. Total taxes for each month 9. Total taxes LESSON 13-3

EMPLOYER ANNUAL REPORTING OF PAYROLL TAXES LESSON 13-3 7/5/2018 EMPLOYER ANNUAL REPORTING OF PAYROLL TAXES page 381 LESSON 13-3

Form requirements W-2 must be given to each employee by Jan. 31 4 copies: Copy B for Federal return, Copy C for personal records. Copy A goes to Social Sec. Admin and Copy D is for business records. Form 941 Employer’s Quarterly Tax Return Filed every 3 months Filed before the last day of the month following the end of the quarter (Ex: if quarter ends in March, file by April 30) Form W-3 sent to Soc. Sec. Admin by Feb. 28 LESSON 13-1

Paying Withholding and Payroll Taxes LESSON 13-4 Paying Withholding and Payroll Taxes

PAYING THE LIABILITY FOR EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX page 383 LESSON 13-4

FORM 8109, FEDERAL DEPOSIT COUPON page 384 LESSON 13-4

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. 1 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. LESSON 13-4

PAYING THE LIABILITY FOR FEDERAL UNEMPLOYMENT TAX page 386 LESSON 13-4

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. LESSON 13-4

JOURNALIZING PAYMENT OF LIABILITY FOR STATE UNEMPLOYMENT TAX LESSON 13-4 7/5/2018 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 LESSON 13-4

LESSON 13-4 7/5/2018 TERMS REVIEW page 389 lookback period LESSON 13-4