ch13-2 review problems. section 3tax liability payments and tax reports what you’ll learn how to...
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Ch13-2 Review Problems
Section 3 Tax Liability Payments and Tax Reports
Section 3 Tax Liability Payments and Tax Reports
What You’ll Learn
How to pay payroll tax liabilities.
Which tax reports are prepared
and filed.
What You’ll Learn
How to pay payroll tax liabilities.
Which tax reports are prepared
and filed.
Why It’s Important
Business owners must pay their payroll
liabilities and file payroll tax reports
promptly and accurately.
Why It’s Important
Business owners must pay their payroll
liabilities and file payroll tax reports
promptly and accurately.
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Key Terms Federal Tax Deposit Coupon Electronic Federal Tax Payment System Form 940 Form 941 Form W-2 Form W-3
Key Terms Federal Tax Deposit Coupon Electronic Federal Tax Payment System Form 940 Form 941 Form W-2 Form W-3
FICA and Federal Income Taxes
One payment is made for:
FICA and Federal Income Taxes
One payment is made for:
social security and Medicare taxes (both the employees’ and the employer’s shares) and
employees’ federal income taxes withheld.
The Federal Tax Deposit Coupon (Form 8109) is prepared and sent with the check. The form identifies the type of tax and the tax period. Refer to Figure 13-3 on p328.
social security and Medicare taxes (both the employees’ and the employer’s shares) and
employees’ federal income taxes withheld.
The Federal Tax Deposit Coupon (Form 8109) is prepared and sent with the check. The form identifies the type of tax and the tax period. Refer to Figure 13-3 on p328.
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Payment of Federal Payroll Tax LiabilitiesPayment of Federal Payroll Tax Liabilities
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
JOURNAL ENTRY
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
JOURNAL ENTRY
Payment of State Income TaxesPayment of State Income Taxes
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
JOURNAL ENTRY
Payment of Federal Unemployment TaxesPayment of Federal Unemployment Taxes
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
JOURNAL ENTRY
Payment of State Unemployment TaxesPayment of State Unemployment Taxes
Payment of Other Payroll LiabilitiesPayment of Other Payroll Liabilities insurance premiums
union dues
charitable contributions
insurance premiums
union dues
charitable contributions
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
JOURNAL ENTRY
Preparing Payroll Tax ReportsPreparing Payroll Tax Reports
Form W-2 summarizes an employee’s earnings and withholdings for the calendar year.
Form 940 to report the employer’s unemployment (state and federal) taxes.
Form 941 is the employer’s quarterly federal tax return on which accumulated amounts of FICA and federal income tax withheld from employees’ earnings, as well as FICA tax owned by the employer, are reported.
Form W-2 summarizes an employee’s earnings and withholdings for the calendar year.
Form 940 to report the employer’s unemployment (state and federal) taxes.
Form 941 is the employer’s quarterly federal tax return on which accumulated amounts of FICA and federal income tax withheld from employees’ earnings, as well as FICA tax owned by the employer, are reported.
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Transmittal of Wage and Tax Statements
Form W-3 summarizes the information
contained
on the
employees’
Forms W-2.
Transmittal of Wage and Tax Statements
Form W-3 summarizes the information
contained
on the
employees’
Forms W-2.
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
You will need to read this chapter in
detail. I did not cover all of the
information in lecture. There are a lot of
details you should be aware of.
You will need to read this chapter in
detail. I did not cover all of the
information in lecture. There are a lot of
details you should be aware of.
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Demonstration Problems 13-4 & 13-5
$1459.47$375.74 $82.50
Employee’s Federal Income Tax Payable
18
2003
Oct 6 1459.47Social Security Tax Payable 375.74Medicare Tax Payable 82.50
Cash In Bank 1917.71Check #534
$239.34
239.34Cash In Bank 239.34
Check #535
6 Employees State Income Tax Payable
47.92Cash In Bank 47.92
Check #536
6 Federal Unemployment Tax Payable
323.46Cash In Bank 323.46
Check #537
6 State Unemployment Tax Payable
$323.46$47.92
283.00Cash In Bank 283.00
Check #856
16 Hospital Ins. Premiums Payable
85.60Cash In Bank 85.60
Check #857
16 Life Ins. Premiums Payable
350.00Cash In Bank 350.00
Check #858
16 Credit Union Payable
70.00Cash In Bank 70.00
Check #859
16 U.S. Savings Bond Payable
46
2003
March
Check Your Understanding p337Check Your Understanding p337
•Thinking Critically 1&2•Analyzing Accounting•Problem 13-4 & 13-5
•Thinking Critically 1&2•Analyzing Accounting•Problem 13-4 & 13-5
Section 3 Tax Liability Payments and Tax Reports (con’t.)
Section 3 Tax Liability Payments and Tax Reports (con’t.)