Deductions
What is a Deduction?
Amount withheld from gross earnings
Debit or Credit: Recording social security tax payable
Credit
What do you add after you write out the dollar amount on a check?
A straight line
What is a salary?
Fixed amount of money, regardless of the number of hours worked
What are the percentages for FICA taxes (Social Security and Medicare)?
Social Security = 6.2%
Medicare = 1.45%
Debit
What is direct deposit?
Net pay is electronically deposited in your bank account
What is an hourly rate?
Amount paid for a specific time period worked
What is the Federal Income Tax for a person who is:
Married, 1 allowance and makes $211
$6
What happens when we pay off a liability?
Debit the liability, credit cash in bank
Where do you put the account number after you post it?
Post. Ref. Column on General Journal
Someone is paid on commission on sales. They are paid 7.5% on their total sales. They sell $58,500 during the period. What is their wage?
$4,387.50
Are Unemployment Taxes paid by the employee or the employer?
Employer
Recording payment of payroll looks like what?
Salaries Expense
S.S. Tax Payable
Medicare Tax Payable
Federal AND State Income Tax Payable
Cash In Bank
When calculating accumulated earnings, do you use gross earnings or net pay?
What is salary plus commission or bonus?
Paid a base salary plus a commission or bonus based on their sales
True or False: Hospital Insurance Premiums are REQUIRED deductions
False - voluntary deductions
Recording employer's payroll taxes looks like what?
Payroll Tax Expense
FUTA
SUTA
S.S. Tax Payable
Medicare Tax Payable
What earnings are employer's payroll taxes paid on?
Total Gross Earnings
What is the overtime rate for someone who makes $17/hour?
$25.50/hour