Page 71 - Account for Ag - 2019

CH 10] Payroll Accounting & Payroll Taxes 10-19

Name:

QUESTIONS

1. What federal taxes are most employers required to withhold from employees' wages?
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2. What two accounts are credited for the federal taxes withheld from wages of employees?
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3. Name the various payroll taxes levied against employers.
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4. What record provided the amounts $1542.70 appearing in illustration 10-8 that were used in determining the employer's tax expense?
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5. The Peerless Pump Co. pays its employees weekly by checks drawn on a payroll bank account. (a) At what times should deposits be
made in the account? (b) How is the amount of the deposit determined? (c) Is it necessary to have an account entitled "Payroll Bank"
in the ledger? Explain. (d) The bank statement for the payroll bank account for the month ended October 31 indicates a credit balance
of $392.47 Assuming that the bank has made no errors, how do you explain this fact?

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(b) _____________________________________________________________________________
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(c) _____________________________________________________________________________
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(d) _____________________________________________________________________________
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