Vocab
Salaries expense
used to record employee’s earnings.
Form 8109
Federal deposit tax coupon sent with FICA and federal taxes
Until when are deductions retained
End of the next month.
A business makes one payment combining what
Social security, Medicare, and federal income tax
In addition to withholding taxes from employee’s wages, the employer does what
Pays taxes
Federal unemployment tax act (FUTA)
Law that requires employers to pay unemployment to the federal government
Electronic federal tax payment system
Pay taxes through electronic fund transfer
Amounts withheld but not paid are what
Payables
Where does the business make the payment
The bank
What do employers taxes consist of and what are they considered
FICA, FUTA, SUTA
State Unemployment Tax Act (SUTA)
Employer pays unemployment to individual state
Form W-2
Summarize earnings and amounts withheld for all taxes
What is credited for total net pay
Cash In bank.
Do they have to make the payment monthly
No, but most do
Unemployment taxes are based on what
% of earnings
Payroll tax expense
Expense to record employer’s payroll taxes
Form W-3
Summarizes W-2 sent to the Government.
Are the payroll liabilities recorded in the same account
No
Most businesses pay the FUTA tax how often
Quarterly
Until paid, the employer’s payroll taxes are what
Payable account
Unemployment tax expense
Collected for funds for people that are out of work
Form 941
Quarterly Fed. tax return that reports FICA and federal income tax from employee’s earnings for the quarter.
The difference between gross earnings and net pay equals what
Withholdings
Form W-2 reports what for things
Earnings, state taxes, local taxes, federal taxes
Do employers pay federal or state unemployment taxes
Yes