Payroll Basics
This term refers to the total amount an employee earns before any deductions.
What is gross earnings?
This form is used to apply for an Employer Identification Number (EIN).
What is Form SS-4?
This form summarizes an employee’s earnings and withholdings annually.
What is Form W-2?
When payroll is paid, what account is typically debited?
What is Wages and Salaries Payable?
This law requires payroll taxes for Social Security and Medicare.
What is FICA (Federal Insurance Contributions Act)?
This is the amount employees take home after deductions.
What is net pay?
Employers deposit payroll taxes using this electronic system.
What is EFTPS (Electronic Federal Tax Payment System)?
This form must accompany all W-2 forms sent to the Social Security Administration.
What is Form W-3?
What account is credited when you transfer money from regular checking to payroll checking?
What is Cash – Regular Checking?
What does FIT stand for?
What is Federal Income Tax?
Name one payroll liability account that includes employer and employee contributions.
What is FICA OASDI Payable or FICA Medicare Payable?
This rule requires next-day deposits if your payroll tax liability reaches $100,000 in a deposit period.
What is the One-Day Rule?
This quarterly form reconciles FIT and FICA taxes with tax deposits.
What is Form 941?
How is employer payroll tax expense recorded?
What is a debit to Payroll Tax Expense and credits to various tax liability accounts (e.g., FUTA, SUTA, FICA)?
Employers and employees both contribute to these two payroll taxes.
What are Social Security (OASDI) and Medicare?
What two accounts are involved in transferring funds to pay payroll?
What are Cash – Payroll Checking and Cash – Regular Checking?
What determines whether an employer deposits payroll taxes monthly or semi-weekly?
What is the look-back period?
Which form reports federal unemployment taxes annually?
What is Form 940?
If $500 is withheld for Medicare, which account is credited?
What is FICA Medicare Payable?
If payroll is run on a Friday and a tax due date falls on a Saturday, when is the deposit due?
What is the next business day (typically Monday)?
This account is used to track pay that has been earned by employees but not yet paid.
What is Wages and Salaries Payable?
If your total tax liability is $2,500 or less in a quarter, what is the rule regarding deposits?
What is "Deposits Not Required"?
What are the due dates for quarterly Form 941 filings?
What is the last day of the month following each quarter (April 30, July 31, October 31, January 31)?
What kind of account is Prepaid WC Insurance and when is it used?
What is an asset account used when workers' compensation premiums are paid in advance?
Name three government agencies that receive a copy of Form W-2.
What are the IRS, Social Security Administration, and state/local governments?