CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 13-1LESSON 13-1

Recording A Payroll

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2

LESSON 13-1

PAYROLL REGISTERPAYROLL REGISTER page 369

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

3

LESSON 13-1

ANALYZING PAYMENT OF A PAYROLLANALYZING PAYMENT OF A PAYROLL page 370

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

4

LESSON 13-1

6. Write the titles of accounts credited.

JOURNALIZING PAYMENT OF A JOURNALIZING PAYMENT OF A PAYROLLPAYROLL

1122

33 44 55

66

page 371

December 15. Paid cash for payroll, $4,609.46. Check No. 335.

77

1. Write the date.

2. Write the title of the account debited.

3. Write the check number.

4. Write the account debited. 7. Write the amounts credited.

5. Write the total amount paid to employees.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 13-2LESSON 13-2

Recording Employer Payroll Taxes

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

6

LESSON 13-2

UNEMPLOYMENT TAXABLE EARNINGSUNEMPLOYMENT TAXABLE EARNINGS

22

33

page 374

111. Enter accumulated earnings and total earnings for each employee.

2. Enter unemployment taxable earnings.

3. Total the Unemployment Taxable Earnings column.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

7

LESSON 13-2

FederalUnemployment

Tax=

FederalUnemployment

Tax Rate×

UnemploymentTaxableEarnings

StateUnemployment

Tax=

StateUnemployment

Tax Rate×

UnemploymentTaxableEarnings

UNEMPLOYMENT TAXESUNEMPLOYMENT TAXES page 375

$6.32=0.8%×$790.00

$42.66=5.4%×$790.00

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

8

LESSON 13-2

JOURNALIZING EMPLOYER JOURNALIZING EMPLOYER PAYROLL TAXESPAYROLL TAXES page 376

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.

(continued on next slide)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

9

LESSON 13-2

JOURNALIZING EMPLOYER JOURNALIZING EMPLOYER PAYROLL TAXESPAYROLL TAXES

1122

33

55

44

66

page 376

4. Write the debit amount.1. Write the date.

5. Write the titles of the liability accounts credited.

2. Write the title of the expense account debited.

6. Write the credit amounts.3. Write the memorandum number.

(continued from previous slide)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 13-3LESSON 13-3

Reporting Withholding And Payroll Taxes

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

11

LESSON 13-3

EMPLOYER ANNUAL REPORT TO EMPLOYER ANNUAL REPORT TO EMPLOYEES OF TAXES WITHHELDEMPLOYEES OF TAXES WITHHELD page 378

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

12

LESSON 13-3

EMPLOYER’S QUARTERLY FEDERAL EMPLOYER’S QUARTERLY FEDERAL TAX RETURNTAX RETURN page 379(continued on next slide)

11

22

1. Heading 2. Number of employees

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

13

LESSON 13-3

EMPLOYER’S QUARTERLY FEDERAL EMPLOYER’S QUARTERLY FEDERAL TAX RETURNTAX RETURN page 379(continued on next slide)

3. Total quarterly earnings

4. Income tax withheld

5. Employee and employer social security and Medicare taxes 7. Total taxes

6. Social security plus Medicare taxes

44

55

33

66

77

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

14

LESSON 13-3

EMPLOYER’S QUARTERLY FEDERAL EMPLOYER’S QUARTERLY FEDERAL TAX RETURNTAX RETURN page 379(continued from previous slide)

88 88 8899

8. Total taxes for each month 9. Total taxes

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

15

LESSON 13-3

EMPLOYER ANNUAL REPORTING OF EMPLOYER ANNUAL REPORTING OF PAYROLL TAXESPAYROLL TAXES page 381

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 13-4LESSON 13-4

Paying Withholding and Payroll Taxes

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

17

LESSON 13-4

PAYING THE LIABILITY FOR EMPLOYEE PAYING THE LIABILITY FOR EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX, AND INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAXMEDICARE TAX page 383

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

18

LESSON 13-4

FORM 8109, FORM 8109, FEDERAL DEPOSIT COUPONFEDERAL DEPOSIT COUPON page 384

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

19

LESSON 13-4

JOURNALIZING PAYMENT OF LIABILITY FOR JOURNALIZING PAYMENT OF LIABILITY FOR EMPLOYEE INCOME TAX, SOCIAL SECURITY EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAXTAX, AND MEDICARE TAX

11

2233

44

55

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. Write the date.

2. Write the titles of the three accounts debited.

3. Write the check number.

4. Write the debit amounts.

5. Write the amount of the credit.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

20

LESSON 13-4

PAYING THE LIABILITY FOR PAYING THE LIABILITY FOR FEDERAL UNEMPLOYMENT TAXFEDERAL UNEMPLOYMENT TAX page 386

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

21

LESSON 13-4

JOURNALIZING PAYMENT OF LIABILITY JOURNALIZING PAYMENT OF LIABILITY FOR FEDERAL UNEMPLOYMENT TAXFOR FEDERAL UNEMPLOYMENT TAX

11 22 33 44 55

page 387

January 31. Paid cash for federal unemployment tax liability for quarter ended December 31, $34.60. Check No. 367.

1. Write the date.

5. Write the amount of the credit to Cash.

4. Write the debit amount.

3. Write the check number.

2. Write the title of the account debited.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

22

LESSON 13-4

JOURNALIZING PAYMENT OF LIABILITY JOURNALIZING PAYMENT OF LIABILITY FOR STATE UNEMPLOYMENT TAXFOR 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. Date

5. Credit amount

4. Debit amount

3. Check number

2. Account debited

11 22 33 44 55