ACC 302 PPt 17

ACC 302 PPt 17 - 1 Employee Compensation Payroll Pensions...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Employee  Employee  Compensation:   Compensation:   Payroll, Pensions,  Payroll, Pensions,  and Other  and Other  Compensation Issues Compensation Issues
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Account for payroll and payroll taxes, and understand the criteria for recognizing a liability associated with compensated absences. Compute performance bonuses and recognize the issues associated with postemployment benefits. Understand the nature and characteristics of employer pension plans, including a detailed discussion of defined benefit plans. Learning Objectives
Background image of page 2
3 Use the components of prepaid/accrued pension costs and changes in the components to compute the periodic expense associated with pensions. Prepare required disclosures associated with pensions, and understand the accounting treatment for pension settlements and curtailments. Learning Objectives
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Learning Objectives Describe the few remaining differences between U.S. pension accounting standards and the provisions of IAS 19. EXPANDED MATERIAL Explain the differences in accounting for pensions and postretirement benefits other than pensions, and be able to account for postretirement benefits other than pensions.
Background image of page 4
5 Employee Compensation Event Line Payroll Payroll Compensated Compensated Absences Absences Stock Options Stock Options and Bonuses and Bonuses Postemployment Postemployment Benefits Benefits Pensions and Pensions and Postretirement Benefits Postretirement Benefits Other Than Pensions Other Than Pensions Time
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Payroll and Payroll Taxes Federal old-age, survivors’, disability, and hospital insurance (tax to both the employee and employer). Federal unemployment insurance (tax to employer only). State unemployment insurance (tax to employer only). Individual income tax (tax to employee only). Social security and income tax legislation Social security and income tax legislation impose four taxes based on payrolls: impose four taxes based on payrolls:
Background image of page 6
7 Salary Expenses and Liabilities The employee’s gross earnings are an expense to the employer. Withholdings are an expense to the employee, not to the employer. Withholdings become a liability to the employer only because the employer keeps money earned by employees and pays obligations on their behalf.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Accounting for a Payroll Employers make this entry to record expense for salaries paid to employees: Salaries Expense 2,000 FICA Taxes Payable 133 Employees Income Taxes Payable 540 Cash 1,327 To record payment of payroll and related employee withholdings.
Background image of page 8
9 Payroll taxes are: An expense to the employer. A liability to the employer until they are paid. Accounting for a Payroll
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Employers make this entry to record their portion of FICA and other payroll taxes: Payroll Tax Expense 204 FICA Taxes Payable 133 State Unemployment Taxes Payable 50 Federal Unemployment Taxes Payable 21 To record the payroll tax liability of the employer. Accounting for a Payroll
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 06/11/2009.

Page1 / 49

ACC 302 PPt 17 - 1 Employee Compensation Payroll Pensions...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online