PAYROLL REGISTER
Lesson 14-1, page 332
© South-Western
Educational Publishing
ANALYZING PAYMENT OF PAYROLL
Lesson 14-1, page 333
© South-Western
Educational Publishing
JOURNALIZING PAYMENT OF A PAYROLL
December 15. Paid cash for semimonthly payroll, $2989.02 (total payroll,
$3,803.75, less deductions: employee income tax, $273.00; social security
tax, $247.26; Medicare tax, $57.07; health insurance premiums, $182.40;
U.S. Savings Bonds, $35.00; United Way donations, $20.00). Check No. 312.
Accounts Affected
Salary Expense
Employee Income Tax Payable
Social Security Tax Payable
Medicare Tax Payable
Health Insurance Premiums Payable
U.S. Savings Bond Payable
United Way Donations Payable
Cash
Classification
Expense
Liability
Liability
Liability
Liability
Liability
Liability
Asset
Change
Increased
Increased
Increased
Increased
Increased
Increased
Increased
Decreased
Entered
Debit side
Credit side
Credit side
Debit side
Credit side
Credit side
Credit side
Credit side
Lesson 14-1, page 334
© South-Western
Educational Publishing
JOURNALIZING PAYMENT OF A PAYROLL
4
2
1
5
3
6
1. Write the date.
2. Write the title of the account debited.
3. Write the check number.
4. Write the amount debited to Salary Expense.
5. Write the amount credited to Cash.
6. Write the titles of the accounts credited.
7. Write the credit amounts.
7
Lesson 14-1, page 334
© South-Western
Educational Publishing
UNEMPLOYMENT TAXES
 
 
Calculate Unemployment Taxes—Federal
Unemployment
Taxable
Earnings

$183.75
 
 

Federal
Federal
Unemployment
Unemployment
Tax Rate
=
Tax
0.8%
=
$1.47
Calculate Unemployment Taxes—State
Unemployment
Taxable
Earnings

$183.75

State
State
Unemployment
Unemployment
Tax Rate
=
Tax
5.4%
=
$9.92
Lesson 14-2, page 338
© South-Western
Educational Publishing
JOURNALIZING EMPLOYER PAYROLL TAXES
December 15. Recorded employer payroll taxes expense, $315.72, for the
semimonthly pay period ended Dec. 15. Taxes owed are: social security
tax, $247.26; Medicare tax, $57.07; federal unemployment tax, $1.47; state
unemployment tax, $9.92. Memorandum No. 63.
Accounts Affected
Payroll Taxes Expense
Soc. Security Tax Pay.
Medicare Tax Payable
Unemp. Tax Pay.—Fed.
Unemp. Tax Pay.—State
Payroll Taxes Expense
Classification
Expense
Liability
Liability
Liability
Liability
Entered
Debit side
Credit side
Credit side
Credit side
Credit side
Change
Increased
Increased
Increased
Increased
Increased
Social Security Tax Payable
Medicare Tax Payable
normal balance
normal balance
normal balance
315.72
247.26
57.07



Unemployment Tax Payable—Federal Unemployment Tax Payable—State
normal balance

1.47
normal balance

9.92
Lesson 14-2, page 339
© South-Western
Educational Publishing
JOURNALIZING EMPLOYER PAYROLL TAXES
2
3
4
1
5
6
1. Write the date.
2. Write the expense account debited.
3. Write the memorandum number.
4. Write the debit amount.
5. Write the titles of the liability accounts credited.
6. Write the credit amounts.
Lesson 14-2, page 339
© South-Western
Educational Publishing
TERMS REVIEW
federal unemployment tax
state unemployment tax
Lesson 14-2, page 340
© South-Western
Educational Publishing
EMPLOYER ANNUAL REPORT TO EMPLOYEES OF
TAXES WITHHELD
Lesson 14-3, page 341
© South-Western
Educational Publishing
EMPLOYER’S QUARTERLY FEDERAL TAX RETURN
1
2
4
3
5
3
6
7
1. Heading
2. Number of Employees
3. Total Quarterly Earnings
4. Income Tax Withheld
5. Employee and Employer
Social Security and
Medicare Taxes
6. Social Security plus
Medicare Taxes
7. Total Taxes
8. Total Taxes for Each
Month
9. Total Taxes
9
8
Lesson 14-3, page 342
© South-Western
Educational Publishing
PREPARING EMPLOYER’S QUARTERLY FEDERAL
TAX RETURN
 
 
Calculate Social Security and Medicare Taxes
Total Earnings
Social Security $22,575.00
Medicare
$22,575.00
 
 

Tax Rate
=
Tax

13%
3%
=
=
$2,934.75
$ 677.25
Calculate Social Security and Medicare Taxes
Employee
Employer
Social
Social
Federal Income Security and
Security and
Federal Tax
Tax Withheld + Medicare Tax + Medicare Tax = Liability
Dec. 1-15 $273.00
Dec. 16-31 $269.00
Totals
$542.00
+
+
+
$304.33
302.08
606.41
+
+
+
$304.33
$302.08
606.41
=
881.66
=
$873.16
= $1,754.82
Lesson 14-3, page 343
© South-Western
Educational Publishing
EMPLOYER ANNUAL REPORTING OF PAYROLL
TAXES
Lesson 14-3, page 344
© South-Western
Educational Publishing
FORM 8109, FEDERAL DEPOSIT COUPON
Lesson 14-4, page 347
© South-Western
Educational Publishing
JOURNALIZING PAYMENT OF LIABILITY FOR
EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX,
AND MEDICARE TAX
January 15. Paid cash for liability for employee income tax,
$542.00; social security tax, $985.40; and Medicare tax, $227.42;
total, $1,754.82. Check No. 330.
Classification
Liability
Liability
Liability
Asset
Employee Inc. Tax Payable Social Security Tax Payable
normal balance
normal balance

542.00
985.40
Entered
Debit side
Debit side
Debit side
Credit side
Change
Decreased
Decreased
Decreased
Decreased
Medicare Tax Payable
normal balance

Accounts Affected
Employee Inc. Tax Pay.
Social Security Tax Pay.
Medicare Tax Payable
Cash
227.42

Cash

normal balance
1,754.82
Lesson 14-4 page 348
© South-Western
Educational Publishing
JOURNALIZING PAYMENT OF LIABILITY FOR
EMPLOYEE INCOME TAX, SOCIAL SECURITY TAX,
AND MEDICARE TAX
1
3
4
5
2
1. Write the date.
2. Write the title of the three accounts debited.
3. Write the check number.
4. Write the three debit amounts.
5. Write the amount of the credit to Cash.
Lesson 14-4, page 348
© South-Western
Educational Publishing
PAYING THE LIABILITY FOR FEDERAL
UNEMPLOYMENT TAX
Lesson 14-4, page 349
© South-Western
Educational Publishing
JOURNALIZING PAYMENT OF LIABILITY FOR
FEDERAL UNEMPLOYMENT TAX
January 31. Paid cash for federal unemployment tax liability for
quarter ended December 31, $8.40. Check No. 343.
Entered
Accounts Affected
Classification Change
Unemployment Tax Payable—Federal Liability
Decreased Debit side
Cash
Asset
Decreased Credit side
normal balance
8.40
Cash
normal balance

Unemployment Tax Payable—Federal
8.40
Lesson 14-4, page 350
© South-Western
Educational Publishing

JOURNALIZING PAYMENT OF LIABILITY FOR
FEDERAL UNEMPLOYMENT TAX
1
2
3
4
5
1. Write the date.
2. Write the title of the account debited.
3. Write the check number.
4. Write the debit amount.
5. Write the amount of the credit to Cash.
Lesson 14-4, page 350
© South-Western
Educational Publishing
JOURNALIZING PAYMENT OF LIABILITY FOR STATE
UNEMPLOYMENT TAX
1
2
3
4
5
1. Write the date.
2. Write the title of the account debited.
3. Write the check number.
4. Write the debit amount.
5. Write the amount of the credit to Cash.
Lesson 14-4, page 350
© South-Western
Educational Publishing