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

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

3. ANALYZING PAYMENT OF A PAYROLL
page 370
LESSON 13-1

4. JOURNALIZING PAYMENT OF A PAYROLL
page 371
December 15. Paid cash for payroll, $4, 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

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

6. 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

7. 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

8. 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

9. 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, $ Memorandum No. 63.
LESSON 13-2

10. 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

11. 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

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

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

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

15. 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

16. 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

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

18. 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

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

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

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

22. 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, 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

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

24. JOURNALIZING PAYMENT OF LIABILITY FOR FEDERAL UNEMPLOYMENT TAX
page 387
January 31. Paid cash for federal unemployment tax liability for quarter ended December 31, $ 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

25. 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, $ 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

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