Payroll Accounting Project

Topics: Federal Insurance Contributions Act tax, Payroll tax, Tax Pages: 2 (319 words) Published: November 22, 2012
Note to Instructors
Depending upon the availability of time and your goals in teaching the payroll accounting course, you may use the Payroll Project in one of several ways:

1. Assign only the preparation of payroll registers and posting to employees’ earnings records. 2. Assign (1) plus recording the entries in the general journal and posting to the general ledger. 3. Assign (1) and (2) plus completion of the quarterly tax reports. 4. Assign the complete project.

5. Appendix A uses the same practice set with the computer-assisted approach. If students are completing the project using Appendix A, it would be helpful to have them complete one of the payrolls manually. This would provide a better understanding of the operations that are being performed by the computer. Chapter 7 consists of a simulation, or practice set, for payroll accounting. Students will apply the knowledge acquired in this course to practical payroll situations. This simulation is a culmination of the information presented in the textbook. Learning Objectives

After completing the simulation, students should be able to:

1. Prepare payroll registers.
2. Maintain employees’ earnings records.
3. Journalize and post payroll and payroll tax entries.
4. Complete federal, state, and city tax deposit forms and journalize the transactions. 5. Prepare various quarter-end and year-end payroll tax forms. 6. Make the accrual entries for the payroll at the end of a year. Payroll Project Solution (p. 7–24)

Oct. 9 Payroll Cash 12 11,058.80
Cash 11 11,058.80

Oct. 9 Administrative Salaries 51 2,307.69
Office Salaries 52 3,353.08
Sales Salaries 53 3,600.00
Plant Wages 54 4,902.00
FICA Taxes Payable—OASDI 20.1 878.09
FICA Taxes Payable—HI 20.2 205.37
Employees FIT Payable 24 1,012.00
Employees SIT Payable 25 434.82
Employees SUTA Payable 25.1 11.33... [continues]
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