1. Payroll Accounting, Taxes, and Reports
Chapter 13
Payroll Accounting, Taxes, and Reports

2. 13.1 Payroll Register

3. Analyzing payment of a payroll
New accounts

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. 13.2 Employer payroll taxes
In addition to paying social security and Medicare taxes (employers pay same rate as employee) employers must also pay:
Federal unemployment tax – a federal tax used for state and federal administrative expenses of the unemployment program
State unemployment tax – a state tax used to pay benefits to unemployed workers
Unemployment taxable earnings – the total earnings subject to unemployment tax (calculated at the end of a pay period) - $7,000 tax base per employee

6. 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

7. 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

8. JOURNALIZING EMPLOYER PAYROLL TAXES
page 376
(continued on next slide)
New accounts
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

9. JOURNALIZING EMPLOYER PAYROLL TAXES
LESSON 13-2
4/7/2019
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
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10. 13.3 Reporting and paying withholding and payroll taxes
Form W-2 – Government form (IRS) that reports employee annual earnings and withholdings (postmarked no later than 1/31/--
Form 941 – Quarterly federal tax return completed by an employer showing FIT, Social security, and Medicare tax due to the government
Form W-3 – form sent to the Social Security Administration by February 28 reporting previous year’s earnings and payroll taxes withheld

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

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

13. 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

14. 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

15. EMPLOYER ANNUAL REPORTING OF PAYROLL TAXES
LESSON 13-3
4/7/2019
EMPLOYER ANNUAL REPORTING OF PAYROLL TAXES
page 381
LESSON 13-3

16. 13.4 Reporting and paying withholding and payroll taxes
Deposit – the payment of payroll taxes with the government (how often determined by 2 amounts) – does not have to be electronic funds transfer (EFT)
Lookback period – The 12-month period that ends on June 30th of the prior year
All new employers start with a monthly deposit period

17. LESSON 13-4
4/7/2019
PAYING THE LIABILITY FOR EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX
page 383
LESSON 13-4
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18. FORM 8109, FEDERAL DEPOSIT COUPON
page 384
LESSON 13-4

19. 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

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

21. 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

22. JOURNALIZING PAYMENT OF LIABILITY FOR STATE UNEMPLOYMENT TAX
LESSON 13-4
4/7/2019
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
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