Payroll Basics
This is the total amount earned by an employee before deductions.
What is gross pay?
This federal tax is withheld from employee earnings based on earnings and allowances claimed.
What is federal income tax?
Employers must match employee Social Security taxes with this tax.
What is employer Social Security tax?
This employee earnings record tracks cumulative earnings and deductions.
What is an employee earnings record?
This account is credited for the amount of earnings employees actually receive.
What is Cash?
This is the amount an employee takes home after deductions.
What is net pay?
This tax helps fund retirement benefits for workers.
What is Social Security tax?
This federal unemployment tax is paid only by employers.
What is FUTA tax?
This form reports wages and taxes withheld for an employee each year.
What is Form W-2?
This account is debited when recording employee earnings.
What is Salaries Expense?
Employees paid according to the number of hours worked are called this.
What are hourly employees?
This payroll tax helps pay for hospital insurance.
What is Medicare tax?
This state unemployment tax may reduce the amount owed for FUTA.
What is SUTA tax?
This form summarizes quarterly payroll taxes for the federal government.
What is Form 941?
This liability account is credited for federal income taxes withheld from employees.
What is Federal Income Tax Payable?
This document summarizes an employee’s earnings and deductions.
What is a payroll register?
Employees complete this form to indicate withholding allowances.
What is Form W-4?
This account is debited when employer payroll taxes are recorded.
What is Payroll Tax Expense?
This payroll report is used to calculate gross pay, deductions, and net pay for all employees.
What is a payroll register?
This journal entry records employer payroll taxes.
What is: Debit Payroll Tax Expense / Credit Social Security Tax Payable / Credit Medicare Tax Payable / Credit Unemployment Tax Payable?
This federal law established the minimum wage and overtime requirements.
What is the Fair Labor Standards Act (FLSA)?
These deductions are not required by law but are authorized by the employee.
What are voluntary deductions?
These two payroll taxes are matched dollar-for-dollar by employers.
What are Social Security tax and Medicare tax?
Employers send this copy of employee earnings information to the SSA.
What is Form W-3?
These accounts are usually credited when recording payroll liabilities.
What are tax payable accounts?