Accounting Basics
A method of paying employees the agreed amount for each week or month
What is salary basis?
A tax on employees and employers to provide medical care for the employee and their spouse after they turn 65
What is Medicare tax?
A person who works under an employer
What is an employee?
A federal act providing certain benefits for employees and their families; officially the Federal Insurance Contributions Act
What is Social Security Act?
The account that shows the value that is lost from an asset overtime
What is Depreciation?
A method of paying employees at an approved rate per hour
What is hourly rate basis?
Taxes on employers to benefit unemployed workers from the federal government
What is Federal unemployment taxes (FUTA)?
Salaried employees who hold supervisory positions and aren't affected by the maximum hour and overtime pay provisions of the Wage and Hour Law
What are exempt employees?
Insurance that protects employees against losses from job-related injuries or illnesses, or compensates their families if death occurs in the course of the employment
What is Workers’ compensation insurance?
Contains a list of all accounts in the general ledger and their balance amounts
What is Trial Balance?
A method to decide the amount of federal income tax that will be withheld using a table
What is wage-bracket table method?
A tax collected from employee earnings to provide retirement and disability benefits
What is Social security (FICA or OASDI) tax?
A form used to claim exemption allowances
What is Employee’s Withholding Allowance Certificate, Form W-4?
Includes details about potential employee's previous workers compensation claims
What is Compensation record?
The basic accounting equation
What is Assets = Liabilities + Owner's Equity?
A method of paying employees according to the number of units produced
What is Piece-rate basis?
Taxes imposed by a state government against employers to benefit unemployed workers
State unemployment taxes (SUTA)
Someone who is paid by a company to do a job but isn't under the direct supervision of the company
What is an independent contractor?
A record of payroll information for each employee for the pay period
What is Payroll register?
A purchase that a person will pay back later
What is on credit?
A method of paying employees according to a net sales percentage
What is Commission basis?
Earnings in excess of the base amount set by the Social Security Act
What is Tax-exempt wages?
Rate of pay for an employee’s work in excess of 40 hours a week
What is time and a half?
An employee record that contains information needed to compute earnings and complete tax reports
What is Individual earnings record?
Statement that shows the revenues and expenses of a company
What is income statement?