Payroll Accounting (Flashcards)

This term refers to all of the taxes withheld from employees’ wages and salaries plus the employers’ portion of the Social Security tax, Medicare tax, and the employers’ federal and state unemployment taxes.

These amounts are deducted from employees’ paychecks for Social Security tax, Medicare tax, federal and state income taxes, and voluntary deductions such as union dues, United Way contributions, health insurance cost, etc.

This component of the FICA tax has both an employee portion and an employer portion. Usually each portion is 6.2% of each employee’s annual gross wages up to a ceiling that adjusts annually.

This component of the FICA tax has both an employee and an employer portion. Each portion is 1.45% of every dollar of employee wages (with no ceiling on the amount of wages).

This payroll withholding from an employee’s wages, salaries, etc. is based on the employee’s gross pay and the information provided by the employee on IRS Form W-4.

This payroll withholding from an employee’s wages, salaries, etc. is based on the employee’s gross pay earned in those states having such a tax.

This nonfederal tax is paid by the employer to fund payments to workers who have been laid off or terminated by the company.

This general ledger account reports the total amount owed to employees for vacation days that have been earned but have not yet been taken.

This income statement account reports the cost of vacations that have been earned by employees during the accounting period shown on the income statement.

This is the amount of pay before withholdings that has been earned by someone who is compensated through an hourly rate of pay.

This is the amount an employee clears on a paycheck. It is the employee’s gross pay minus the withholdings for payroll taxes and other items.

This term refers to the compensation for managers, executives, professionals, etc. whose pay is quoted on an annual or monthly basis.

This term is used when referring to the compensation for hourly-paid employees.

This is a worker’s pay for working the hours that are in excess of 40 hours per week.

This is the additional $5 per hour that a person earning $10 per hour will receive when working more than 40 hours in a week. It is also known as the “half” in “time and a half.”

This phrase describes the amount that a worker will likely earn for each hour worked in excess of 40 hours per week.

This term is used to describe a nonemployee who performs a task for a company. (The company must furnish a Form 1099-MISC to such individuals who are paid $600 or more in a calendar year.)

This term refers to wages that have been earned by an employee but have not yet been recorded.

This describes the category of employees who are not paid salaries.

This term indicates that paydays will occur every two weeks and will result in 26 paydays in a year.

This term indicates that paydays will occur twice each month (such as the 15th and the last day of the month) and will result in 24 paydays in a year.

This term refers to benefits such as pensions and health insurance which are earned by employees during their working years but given to the employees during their retirement years.

This term refers to employees’ paid vacations, paid holidays, sick days, health insurance, life insurance, employer portions of Social Security and Medicare taxes, etc.

This term refers to the withholding of a portion of an employee’s wages or salaries to comply with a court order.

This refers to the employer sending to the government or bank 1) taxes withheld from employees’ earnings, and 2) the employer’s portion of the FICA and unemployment taxes.

This balance sheet classification represents a company’s obligations that are due within one year of the balance sheet date and will require the use of a current asset or will create another current liability.

This type of insurance is obtained and paid for by a company in order to cover the medical costs and the lost wages of employees’ work-related injuries and illnesses.

This IRS form is provided to every employee in January and contains the information relevant for the employee’s income tax return for the previous calendar year.

This IRS form is completed by an employee and given to the employer for use in computing the employee’s federal income tax withholdings.

Some employees who didn’t owe tax in the prior year and will not owe tax in the current year can claim this status on Form W-4.

This IRS form is filed by an employer to report employee withholdings for federal income taxes, Social Security and Medicare taxes and the employer’s portion of Social Security and Medicare taxes.

This IRS form is used by a company to request another company’s taxpayer (or employer) identification number that may be needed to complete Form 1099.

This IRS form is given by a company to nonemployees who performed services and were paid $600 or more in a calendar year for services.

This term refers to paid vacation days, paid holidays, paid sick days, etc.

This basic accounting principle requires companies to accrue the expense and liability for wages and benefits that were earned by the employees but not yet paid.