Ch6_2012

Ch6_2012 - BernardJ.BiegandJudithA.Toland CHAPTER6 CHAPTER6...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 6  CHAPTER 6                      PAYROLL TRANSACTIONS PAYROLL TRANSACTIONS Payroll Accounting 2012  Payroll Accounting 2012  Bernard J. Bieg and Judith A. Toland Bernard J. Bieg and Judith A. Toland
Background image of page 1

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

View Full Document Right Arrow Icon
Learning Objectives Record payrolls in appropriate records Understand various deductions taken from employees’ gross pay Journalize entries to record payroll Post to general ledger Explain recording of payroll tax deposits Understand need for end-of-period adjustments
Background image of page 2
Accounting for Payroll Transactions Payroll requires entering data (in order) in the following places: Payroll Register Employee Earnings Records General Journal Journalize gross wages and withholdings Journalize payroll taxes and workers’ compensation Journalize period-end accruals Post to General Ledger LO-1
Background image of page 3

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

View Full Document Right Arrow Icon
Payroll Register First – record info in payroll register Lists employees in rows and shows following information for each Gross wages Taxes withheld and other deductions Net pay Payroll register shows (in columns) Total of gross wages, each deduction and net When completed, should “foot” or prove payroll register by ensuring that columns and rows all total to bottom right hand number *Use payroll register to journalize* LO-1
Background image of page 4
Employee’s Earnings Record Second – transfer info to employees’ earnings records Used to track cumulative totals (wages and taxes) Enter row of data for each pay period Important because different wage caps for FUTA, SUTA and OASDI taxes Need to track cumulative totals in order to issue W-2s and do quarterly SUTA reports Used to prepare payroll analyses - various internal and external reports Might be used to settle employee grievances LO-1
Background image of page 5

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

View Full Document Right Arrow Icon
Third - enter information into accounting system Gross payroll is debited Each withholding tax is a liability All other payroll deductions are liabilities as well LO-1
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 19

Ch6_2012 - BernardJ.BiegandJudithA.Toland CHAPTER6 CHAPTER6...

This preview shows document pages 1 - 7. Sign up to view the full document.

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