Chapter 13
This presentation is the property of its rightful owner.
Sponsored Links
1 / 10

Chapter 13 PowerPoint PPT Presentation


  • 162 Views
  • Uploaded on
  • Presentation posted in: General

Chapter 13. Payroll Accounting, Taxes, and Reports. 13-1: Recording a Payroll. Payroll information for each pay period is recorded in a payroll register. The payroll information for each employee is also recorded on each employee earnings record.

Download Presentation

Chapter 13

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Chapter 13

Chapter 13

Payroll Accounting, Taxes, and Reports


13 1 recording a payroll

13-1: Recording a Payroll

  • Payroll information for each pay period is recorded in a payroll register.

  • The payroll information for each employee is also recorded on each employee earnings record.

  • The payroll register and employee earning records provide all the payroll information needed to prepare payroll and payroll tax reports.


13 1 recording a payroll1

13-1: Recording a Payroll

  • Payroll registers are similar to a special journal, because payroll registers use columns to total debit and credit amounts needed to journalize a payroll.

  • Payroll journal entries are based on the totals of the Earnings Total column, each deduction column, and the Net Pay column.


13 2 recording employer payroll taxes

13-2: Recording Employer Payroll Taxes

  • Employers must pay taxes to the government that they have withheld from employee earnings.

  • Most employers must pay four separate payroll taxes:

    • Employer social security tax

    • Medicare tax

    • Federal Unemployment tax

    • State Unemployment tax


Terms

Terms

  • Federal unemployment tax: A 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.

  • Lookback period: The 12-month period that ends on June 30th of the prior year.


13 2 recording employer payroll taxes1

13-2: Recording Employer Payroll Taxes

  • Social security and Medicare are the only payroll taxes paid by both the employer and the employees.

  • The federal unemployment tax is .8% on the first$7000.00 that an employee earns.

  • The state unemploymenttax is 5.4% on the first $7000.00 that an employee earns.


13 3 reporting withholding and payroll taxes

13-3: Reporting Withholding and Payroll Taxes

  • Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with an annual report of these withholdings.

  • Employers are required to furnish Form

    W-2 to each employee by January 31st of the next year.


13 3 reporting withholding and payroll taxes1

13-3: Reporting Withholding and Payroll Taxes

  • Four copies (A-D) of Form W-2 are prepared for each employee.

  • Copies B and C are given to the employee, A is sent to the Social Security Administration, and D is kept for company records.

  • Businesses in states with state income tax must prepare additional copies of Form W-2 as well.


13 3 reporting withholding and payroll taxes2

13-3: Reporting Withholding and Payroll Taxes

  • Each employer is required by law to periodically report payroll taxes due to the government.

  • Each employer must file a quarterly federal tax return showing the federal income tax, social security tax, and Medicare tax due to the government.


13 4 paying withholding and payroll taxes

13-4: Paying Withholding and Payroll Taxes

  • Employers must pay to the federal, state, and local governments all payroll taxes withheld from employee earnings as well as the employer payroll taxes.

  • Federal unemployment insurance is paid by the end of the month following each quarter if the liability amount is more than $100.


  • Login