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Lecture number:
Lecture Note
Miami University, Oxford
Acc 221 - Intro to Financial Accounting
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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 ½, employer ½)  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  Federal Income Tax  Individual for each person o Dr. salaries payable, Cr. Federal Income tax payable  State Income Tax ACC 221 1st Edition

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