ACC 296 Lecture Notes - Lecture 5: Adjusted Gross Income, Electronic Funds Transfer, Form 1040

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indigolion532

18 May 2018

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A qualified retirement plan sponsored by an employer.

Accumulated Earnings

The total gross earnings year to date for an employee.

Adjusted Gross Income

The amount of total income minus adjustments, reported on Form 1040.

Commission

A method of paying an employee based on the amount of sales the employee generates. These are

normally calculated as a percent of an employee's sales.

Direct Deposit

the payment of an employee's net pay using electronic funds transfer.

IRA

A qualified retirement plan that provides most individuals with a deferred federal income tax benefit.

Medicare Tax

A federal tax paid for hospital insurance.

Net Pay

Earnings paid to an employee after payroll taxes and other deductions.

Pay Period

The number of days or weeks of work covered by an employee's paycheck.

Payroll

The total amount earned by all employees for a pay period.

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Document Summary

A qualified retirement plan sponsored by an employer. The total gross earnings year to date for an employee. The amount of total income minus adjustments, reported on form 1040. A method of paying an employee based on the amount of sales the employee generates. These are normally calculated as a percent of an employee"s sales. Direct deposit the payment of an employee"s net pay using electronic funds transfer. A qualified retirement plan that provides most individuals with a deferred federal income tax benefit. Earnings paid to an employee after payroll taxes and other deductions. The number of days or weeks of work covered by an employee"s paycheck. The total amount earned by all employees for a pay period. Payroll clerk the accounting staff position that compiles and computes payroll data, than prepares, journalizes and posts payroll transactions. Any amount withheld from an employee"s gross earnings.

Related Questions

21. In order to set up employer defaults forpayroll liabilities and expenses, which of the following would oneselect?
Employee Defaults/General
Employee Defaults/EmployeeFields
Employee Defaults/CompanyFields
Payroll & EmployeesNavigation Center; Pay Employees

Question 22. 22. The tab on the employeeaccount that stores withholding and filing status information forthe employee is called the:

General tab
Pay Info tab
Withholding Info tab
Employee Fields tab

Question 23. 23. Employee voluntary deductionsthat go into an employer sponsored 401k plan are called:

Retirement plan voluntarydeductions
Health insurance voluntarydeductions
Contributions
None of the above

Question 24. 24. Net pay equals:

Net pay minus total payrolltax withholdings and total voluntary deductions
Gross pay plus total payrolltax withholdings and total voluntary deductions
Gross pay minus total payrolltax withholdings and total voluntary deductions
Gross pay minus total payrolltax withholdings

Question 25. 25. The employee federal taxeswithheld on gross wages, which the government uses to fundretirement, is called:

State income taxwithholdings
Social Security taxwithholdings
Medicare taxwithholdings
Federal income taxwithholdings

Question 26. 26. The employee state incometaxes withheld on taxable wages is called:

State income taxwithholdings
Social Security taxwithholdings
Medicare taxwithholdings
Federal income taxwithholdings

Question 27. 27. On the Navigation Bar, whatselections would you make to set up payroll defaultinformation?

Employees & PayrollNavigation Center, click on the Pay Employees icon and select EnterPayroll for Multiple Employees
Employees & PayrollNavigation Center, click on the Pay Employees icon and select SetUp Payroll Service
Employees & PayrollNavigation Center, click on the Employees icon and select Set UpEmployee Defaults
Tasks; Payroll Entry

Question 28. 28. You can manage employeeaccounts from the:

Employee Register
Employee List
Employee Directory
Employee Record

Question 29. 29. The employee federal incometax withheld on taxable wages is called:

State income taxwithholdings
Social Security taxwithholdings
Medicare taxwithholdings
Federal income taxwithholdings

Question 30. 30. The tab on the employeeaccount that stores the default general ledger accounts PTCA useswhen posting employee paychecks is called the:

General tab
Pay Info tab
Withholding Info tab
Employee Fields tab

scarletkangaroo773

Paloma Co. Stars has four employees. FICA Social Security taxesare 6.2% of the first $110,100 paid to each employee, and FICAMedicare taxes are 1.45% of gross pay. Also, its FUTA taxes are0.8% and SUTA taxes are 2.15% of the first $7,000 paid to eachemployee. The company is preparing its payroll calculations for theweek ended August 25. Payroll records show the followinginformation for the companyâs four employees.

current week
name	Gross Pay 8/18	Gross Pay	Income Tax Withholding
Dahlia	107,200	3800	276
Trey	36250	820	137
Kiesha	8000	630	57
Chee	1950	580	48

In addition to gross pay, the company must pay one-half of the$60 per employee weekly health insurance; each employee pays theremaining one-half. The company also contributes an extra 8% ofeach employeeâs gross pay (at no cost to employees) to a pensionfund.

Required:

Compute the following for the week ended August 25 (Round youranswers 2 decimal places)

Employee	Earnings subject to tax	Tax rate	Tax amount
Dahlia
Trey
Kiesha
Chee

2)Emmployees' FICA withholding for Medicare

Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia
Trey
Kiesha
Chee

3)Employer's FICA taxes for Social Security

Employee	Earnings subject to tax	tax rate	tax amount
Dahlia
Trey
Kiesha
Chee

4) Employer's FICA taxes for Medicare

Employee	Earnings subject to Tax	Tax Rate	Tax Amount
Dahlia		1.45
Trey		1.45
Kiesha		1.45
Chee		1.45

5)Employer's FUTA taxes

Employee	Earnings subject to tax	Tax Rate	Tax Amount
Dahlia		.8
Trey		.8
Kiesha		.8
Chee		.8

6) Employer's SUTA taxes

Employee	Earnings subhect to tax	Tax Rate	Tax Amount
Dahlia		2.15
Trey		2.15
Kiesha		2.15
Chee		2.15

7) Each employee's net (take-home) pay

Employee	Dahlia	Trey	Kiesha	Chee	Total
Gross Pay	3800	820	630	580	5830
Income Tax Withholding	276	137	57	48	518
FICA -SS
FICA - Medicare
Health Insurance
Net Pay

8) Total payroll related expense for each employee

Employee	Dahlia	Trey	Kiesha	Chee	Total
Gross Pay	3800	820	630	580	5830
FICA - SS
FICA -Medicare
FUTA
SUTA
Health Insurance
Pension
Total Payroll Expense

amethysteagle933

Paloma Co. Stars has four employees. FICA Social Security taxesare 6.2% of the first $117,000 paid to each employee, and FICAMedicare taxes are 1.45% of gross pay. Also, for the first $7,000paid to each employee, the companyâs FUTA taxes are .6% and SUTAtaxes are 6.20%. The company is preparing its payroll calculationsfor the week ended August 25. Payroll records show the followinginformation for the companyâs four employees.

				Current Week

Name	Gross Pay through Aug. 18			Gross Pay			Income Tax Withholding
Dahlia		$	115,600		$	2,600		$	369
Trey			116,250			750			121
Kiesha			8,300			570			49
Chee			2,250			520			39

In addition to gross pay, the company must pay one-half of the$84 per employee weekly health insurance; each employee pays theremaining one-half. The company also contributes an extra 8% ofeach employeeâs gross pay (at no cost to employees) to a pensionfund.

Required:

Compute the following for the week ended August 25.(Round your intermediate calculations and final answers to2 decimal places.):

1) Employees' FICAWithholdings for Social Security
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia
Trey
Kiesha
Chee
		Total

2) Employees' FICAWithholdings for Medicare
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia
Trey
Kiesha
Chee
		Total

3) Employer's FICA Taxes forSocial Security
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia
Trey
Kiesha
Chee
		Total

4) Employer's FICA Taxes forMedicare
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia		1.45%
Trey		1.45%
Kiesha		1.45%
Chee		1.45%
		Total

5) Employer's FUTA Taxes
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia		0.60%
Trey		0.60%
Kiesha		0.60%
Chee		0.60%
		Total

6) Employer's SUTA Taxes
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia		6.20%
Trey		6.20%
Kiesha		6.20%
Chee		6.20%
		Total

7) Each Employee's Net(take-home) Pay
Employee	Dahlia	Trey	Kiesha	Chee	Total
Gross Pay	$2,600.00	$750.00	$570.00	$520.00	$4,440.00
Income tax withholding	369.00	121.00	49.00	39.00	578.00
FICA - Social Security
FICA - Medicare
Health Insurance
Net Pay

8) Total Payroll RelatedExpense for Each Employee
Employee	Dahlia	Trey	Kiesha	Chee	Total
Gross Pay	$2,600.00	$750.00	$570.00	$520.00	$4,440.00
FICA - Social Security
FICA - Medicare
FUTA
SUTA
Health Insurance
Pension
Total Payroll Expense

whitehare61

ACC 296 Lecture Notes - Lecture 5: Adjusted Gross Income, Electronic Funds Transfer, Form 1040

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