Chapter 7 Project
CHAPTER
7
Payroll Project
L E A R N IN G O BJ E C T IV E S
Chapter 7 consists of a simulation, or practice set, for payroll accounting. You will apply the knowledge acquired in this course to practical payroll situations. This simulation is a culmination of the information presented in the textbook. After completing this chapter, you should be able to: 1 2 3 4 5 6 Prepare payroll registers. Maintain employees’ earnings records. Journalize and post payroll and payroll tax entries. Complete federal, state, and city tax deposit forms and journalize the transactions. Prepare various quarter-end and year-end payroll tax forms. Make the accrual entries for the payroll at the end of a year.
What now? Can we process a payroll? How about the accounting entries and postings? Can we complete the deposit forms and the ‘‘dreaded’’ payroll tax returns? What have we learned in the previous six chapters? Did I waste this semester? Let’s find out. Here’s your real-world test.
7-1 9781435463509, Payroll Accounting, 2012 Edition, Bernard J. Bieg - © Cengage Learning. All rights reserved. No distribution allowed without express authorization
7-2
CHAPTER 7 • Payroll Project
Payroll Accounting 2012
The Payroll Project will provide you with extended practice in keeping payroll records and accounting for payroll transactions. Your completion of this project involves an application of the information learned in the preceding chapters. The work provided resembles that prevailing in the office of every employer in the United States subject to the provisions of the Federal Wage and Hour Law, income tax withholding laws, social security laws, and unemployment compensation laws. Even though most payroll systems now employ computers, it is important that the practitioner understand the operations performed by the computer. If your assignment involves the use of Appendix A (computerized option) to complete this project, it is suggested that you do at least one of the
7
Payroll Project
L E A R N IN G O BJ E C T IV E S
Chapter 7 consists of a simulation, or practice set, for payroll accounting. You will apply the knowledge acquired in this course to practical payroll situations. This simulation is a culmination of the information presented in the textbook. After completing this chapter, you should be able to: 1 2 3 4 5 6 Prepare payroll registers. Maintain employees’ earnings records. Journalize and post payroll and payroll tax entries. Complete federal, state, and city tax deposit forms and journalize the transactions. Prepare various quarter-end and year-end payroll tax forms. Make the accrual entries for the payroll at the end of a year.
What now? Can we process a payroll? How about the accounting entries and postings? Can we complete the deposit forms and the ‘‘dreaded’’ payroll tax returns? What have we learned in the previous six chapters? Did I waste this semester? Let’s find out. Here’s your real-world test.
7-1 9781435463509, Payroll Accounting, 2012 Edition, Bernard J. Bieg - © Cengage Learning. All rights reserved. No distribution allowed without express authorization
7-2
CHAPTER 7 • Payroll Project
Payroll Accounting 2012
The Payroll Project will provide you with extended practice in keeping payroll records and accounting for payroll transactions. Your completion of this project involves an application of the information learned in the preceding chapters. The work provided resembles that prevailing in the office of every employer in the United States subject to the provisions of the Federal Wage and Hour Law, income tax withholding laws, social security laws, and unemployment compensation laws. Even though most payroll systems now employ computers, it is important that the practitioner understand the operations performed by the computer. If your assignment involves the use of Appendix A (computerized option) to complete this project, it is suggested that you do at least one of the