《financial Accouning, 9e财务会计 Warren》ch11.pptVIP

The Nature of Current Liabilities Short-Term Notes Payable Short-Term Notes Payable Mdse. Inventory 10,000 Accounts Payable 10,000 Product Liability Accounting Treatment of Contingent Liabilities Liability for Employee Earnings Gross Pay Calculation FICA Tax Calculation Earnings subject to 6% social security tax ($100,000 – $99,038) $962 Social security tax rate x 6% Social security tax $57.72 Withholding Taxes, Other Deductions Employers are required to withhold federal income tax from each employee based on the withholding table and information provided by the employee’s W-4 form. Federal income tax and FICA tax must be withheld from the pay of each employee. Deductions for other purposes may be withheld by mutual agreement. Employee Net Pay Calculation Responsibility for Tax Payments Federal Income Payroll Register Payroll Register Summary Flow of Data in a Payroll System Employees’ Fringe Benefits Recording Employer’s Payroll Taxes Dec. 27 Payroll Tax Expense 1 019 62 Payroll taxes for week ended December 27. Social Security Tax Payable 643 07 Medicare Tax Payable 208 53 State Unemployment Tax Payable 146 34 Federal Unemployment Tax Pay. 21 68 Wage and Tax Statements W-2 W-2 Updated Variables (cumulative earnings, taxes) Constant Data (rates of pay, tax, etc.) Current Period’s Variables (hours worked) Payroll Checks and Statements Payroll Tax Returns Financial Statements PAYROLL REGISTER GENERAL LEDGER EMPLOYEES’ EARNINGS RECORDS * * Chapter 11 Current Liabilities Accounting, 21st Edition Warren Reeve Fess PowerPoint Presentation by Douglas CloudProfessor Emeritus of AccountingPepperdine University ? Copyright 2004 South-Western, a division of Thomson Learning. All rights reserved. Task Force Image Gallery clip art included in this electronic presentation is used with the permission of NVTech Inc. Some of the action has been automated, so click the mouse when you see this lightning bolt in the lower r