ACC 221 1st Edition Lecture 26 Outline of Previous Lecture Section 25 Accounting Field Jobs in Accounting o Fields o Opportunity o Typical workday Outline of Current Lecture Section 26 Payroll Liabilities o Payroll taxes o Additional money owed to government o Full cycle of payroll Sales Tax Current Lecture Section 26 Payroll Liabilities o Payroll Taxes Until payday place salary payable into liabilities section On payday pay off liabilities with cash Take out taxes prior to payday Total salary expense If not withholding any o Dr salaries expense Cr Salaries payable FICA tax Social security and Medicare 15 3 employee employer Percentage wages earned o Dr Tax Expense Cr FICA taxes payable Payoff o Dr FICA taxes payable Cr Cash Add expense columns total assets of payroll FICA on Personal Account Dr Salaries Payable Cr FICA tax payable These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Federal Income Tax Individual for each person o Dr salaries payable Cr Federal Income tax payable State Income Tax Individual for each person married kids ect o Dr Salaries payable Cr State income tax payable Pay employees Dr salaries payable Cr Cash o Additional money owed to government Unemployment tax pay depends on how often you lay off employees o State unemployment tax payable o Also pay small amount to federal o Full cycle of payroll Pay off all liabilities within cycle zero balance Sales tax o 100 7 sales tax pay 107 Dr Cash 107 Cr Sales revenue 100 Cr Sales tax payable 7 o Total paid 107 7 tax original price 107 1 07 original price
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