Payroll Accounting and Reporting Flashcards
7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Payroll Accounting and Reporting flashcards as text
Which account classification is correct for the employer's FUTA and SUTA tax liabilities before payment?
Answer: Current liabilities on the balance sheet
FUTA and SUTA liabilities are current liabilities because they are expected to be paid within one year (typically quarterly or annually).
An employer files Form 941 for Q2 showing $15,000 in total taxes. Deposits made during Q2 were $14,800. How should the $200 balance be handled?
Answer: Remit the $200 balance due with Form 941 by the filing deadline
A balance due on Form 941 must be remitted with the return by the filing deadline (last day of the month following the quarter) to avoid penalties.
Which of the following is a key difference between the payroll register and the employee earnings record?
Answer: The payroll register summarizes all employees for a pay period; the earnings record tracks a single employee's cumulative year-to-date data
The payroll register is a period-by-period summary across all employees, while the individual earnings record accumulates YTD wages, taxes, and deductions for each employee.
What does a negative (credit) balance in the Salaries Payable account indicate?
Answer: Employees were overpaid and a receivable exists
A credit balance is normal for Salaries Payable (a liability), but if the account shows a debit balance (negative payable), it means employees were overpaid and amounts are owed back.
When must an employer deposit FUTA taxes, assuming the quarterly liability exceeds $500?
Answer: By the last day of the month following the end of the quarter
FUTA deposits are due by the last day of the month following the quarter in which the cumulative liability exceeds $500.
A company grants a $500 non-accountable plan expense reimbursement to an employee. How should this be reflected in payroll accounting?
Answer: Included in the employee's gross wages subject to income tax withholding and FICA
Non-accountable plan reimbursements are treated as additional wages, must be included in gross pay, and are subject to income tax withholding and FICA taxes.
Which of the following scenarios requires the employer to file a Form 941-X?
Answer: The employer discovers it over-withheld Social Security tax from an employee in a prior quarter
Form 941-X is an amended return used to correct errors in previously filed Form 941s, such as over- or under-withheld taxes from a prior quarter.