ACC 221 1st Edition Lecture 26Outline of Previous Lecture- Section 25: Accounting Field Jobs in Accountingo Fieldso Opportunityo Typical workdayOutline of Current Lecture - Section 26: Payroll Liabilitieso Payroll taxeso Additional money owed to governmento Full cycle of payroll Sales TaxCurrent Lecture- Section 26: Payroll Liabilitieso 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 anyo Dr. salaries expense, Cr. Salaries payable FICA tax- Social security and Medicare (15.3%, employee ½, employer ½)- Percentage (wages earned)o Dr. Tax Expense, Cr. FICA taxes payable- Payoffo Dr. FICA taxes payable, Cr. Cash- Add expense columns = total assets of payroll FICA on Personal Account- Dr. Salaries Payable, Cr. FICA tax payableThese 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 persono 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. Casho Additional money owed to government Unemployment tax- % pay depends on how often you lay off employees. o State unemployment tax payableo Also pay small amount to federalo Full cycle of payroll Pay off all liabilities within cycle, zero balance Sales taxo $100, 7% sales tax, pay $107 Dr. Cash $107, Cr. Sales revenue $100, Cr. Sales tax payable $7o Total paid $107, 7% tax, original price? 107/1.07 = original
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