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If you have difficulty answering the following questions, learn more about this topic by reading our Payroll Accounting (Explanation).
What is the total amount of FICA that needs to be remitted by an employer in 2023 for an employee earning $50,000?
Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month?
An employee is hired at a pay rate of $10 per hour. During the past week, the employee worked 50 hours. The employee’s gross wages for the past week are
Use the following information for Questions 15 - 17:
An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. The agreement also states that the two weeks of vacation shall be taken any time in 2023 and the amount paid will be 80 hours multiplied by the employee's rate of pay at December 31, 2022. At December 31, 2022 the employee's pay rate was $15. Assume that the company uses the accrual method of accounting.
Which financial statements are affected in the year 2022?
When the employer pays the employee in 2023 for the vacation earned in 2022, what account will the company debit?
In January 2023 an employer remits the state unemployment tax that pertains to its employees' wages for the final three months of 2022. On which income statement will the state unemployment tax expense appear under accrual accounting?
Use the following information for Questions 19 - 20:
An employer has computed the following amounts for its employee Mary during a week in January: gross wages $500.00; FICA tax withheld $38.25; federal income tax withholding $67.25; State income tax withholding $20.00; unemployment taxes $24.00; worker compensation insurance $5.00. The company does not provide health insurance, paid vacations, or any other benefits.
The amount of Mary’s net pay is
The employer’s total expense for Mary’s employment during the week is
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