Intermediate Accounting课件

Intermediate Accounting课件 http://www.360doc.com/content/13/0424/16/7914572_280631013.shtml

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http://www.360doc.com/content/13/0424/16/7914572_280631013.shtmlhttp://www.360doc.com/content/13/0424/16/7914572_280631013.shtmlPowerPoint presented by: Douglas Cloud Professor Emeritus of Accounting, Pepperdine University?2010 Cengage Learning17-1

Payroll and Payroll TaxesSocial security and income tax legislation impose five taxes based on payrolls:1.Federal old-age, survivors’, and disability (tax to both the employee and employer)2.Federal hospital insurance (tax to both employer and employee)3.Federal unemployment insurance (tax to employer only)(continues)17-2

Payroll and Payroll Taxes4.State unemployment insurance (tax to employer only)5.Individual income tax (tax to employee only but withheld and paid by employer)17-3

Federal Insurance Contributions Act (FICA)?The (FICA)Federal Insurance Contributionsemployers and employees to provide funds provides for FICA taxes from both Act for federal old-age, survivorsbenefits for certain individuals and ’, and disability members of their families.?The employer is required to withhold FICA taxes from each employee’s wages.?In 2007, annual wages up to $97,200 were subject to 6.20% of FICA tax.17-4

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幻灯片 9 Federal Hospital Insurance?FICA also includes a provision for Medicare tax.?This tax differs from the tax previously discussed in that the tax is applied to all wages earned. ?For 2007, the rate was 1.45% for both employer and employee.17-5

Federal Unemployment Insurance?The Federal Social Security Actand the Federal Unemployment Tax Act(FUTA)provide for the establishment of unemployment insurance plans. ?Employers with insured workers employed in each of 20 weeks during a calendar year or who pay $1,500 or more in wages during a calendar quarter are affected.(continues)17-6

Federal Unemployment Insurance?Tax rate on the first $7,000 of wages earned has been 6.2% since 1985.?Employer can apply for a credit limited to 5.4% for taxes paid on state unemployment tax, effectively reducing the federal tax to 0.8% (6.2% –5.4%).?No tax is levied on the employee.17-7

State Unemployment Insurance?State unemployment compensation laws (SUTA)differ across states. Most states only tax employers, but a few tax both.?Savings under state merit systems are also allowed as credits in the calculation of the federal contribution.17-8

Income Tax?Federal income taxes on the wages of individuals are collected in the period in which the wages are paid.?The “pay-as-you-go”plan requires employers to withhold income tax from wages paid to their employees.(continues)17-9

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Income Tax?Withholding is required not only of employers engaged in a trade or business but also of religious and charitable organizations, educational institutions, social organizations, and governments of the United States.17-10

Accounting for Payroll TaxesSalaries for the month of January for a retail store are $16,000. The SUTA tax rate is 5.4%. Withholdings are $1,600 and FICA tax rate is 7.65%. The employer records the payroll as follows:Salaries Expense16,000FICA Taxes Payable1,224Employees Income Taxes Payable1,600Cash13,176To record payment of payroll and relatedemployee withholdings.(continues)17-11

Accounting for Payroll TaxesThe employer’s payroll tax entry is as follows:Payroll Tax Expense2,216FICA Taxes Payable1,224State Unemployment Taxes Payable864Federal Unemployment TaxesPayable128To record payment of payroll and relatedemployee withholdings.$16,000 .008 (0.062 –0.054) $16,000 ×.0765××$16,0000.05417-12

Accounting for Payroll TaxesAssume accrued salaries at December 31 were $9,500. Of this amount, $2,000 was subject to unemployment taxes and $6,000 to FICA tax. The adjusting entry for the employer’s payroll taxes would be as follows:Payroll Tax Expense583FICA Taxes Payable0.0765 459State Unemployment Taxes Payable0.054 0.0765 ×0.054 $6,000××0.008 $2,000$6,000×0.008 ×108FUTA Payable$2,000×16To accrue the payroll tax liability of the employer.$2,000$2,00017-13

Compensated AbsencesCompensated absencesinclude payments by employers for:?Vacations?Holidays?Illnesses?Other personal activities(continues)17-14