CHAPTER 6 Analyzing and Journalizing Payroll Payroll Accounting 20118 6-36 QUESTIONS FOR REVIEW 1. What are the main kinds of information contained 12. What must the employer do with unclaimed in a payroll register? 2. For what reason are "distribution" columns sometimes provided in the payroll register? paychecks? 13. What special accounts must usually be o the general ledger to record payroll tax entries? 3. Explain the use of the "Cumulative" column in the 14. Is it necessary for an employer who is subject to FICA and FUTA taxes to keep a separate expense account for the taxes under each act? employee's earnings record 4. In Philadelphia, Pennsylvania, most workers are 15. What is the effect of each of the following postings subject to three income taxes upon their federal, state, and city. Should an employer in Phila delphia record the liability for the withholding of all three income taxes in one liability account such as Income Taxes Payable? ir earnings- upon the assets, liabilities, and owner's equity of company a. A debit to Wages b. A credit to FICA Taxes Payable-HI. c. A debit to SUTA Taxes Payable. d. A credit to Cash 5. What is meant by the garnishment of wages? 6. What is general priority order concerning wage attachments? 16. Why is it necessary to classify employees by kind of work performed when computing the cost of work ers' compensation insurance? 7. Under the Consumer Credit Protection Act, what is the maximum percentage that can be deducted from an employee's pay to satisfy a student loan garnishment? 17. What accounts are debited and credited when an employer records the electronic transfer of FICA taxes and federal income taxes that have been withheld? 6. What portions of an employee's wages are exempt from a federal tax levy? How will payroll deductions from employees' wages 18. How is the amoun of a weekly payroll that is accrued at the end of an accounting period determined? r their portion of 401(k) plans be recorded? 10. How are employees who do not have bank accounts 19 . When are expenses of benefits such as vacation pay y an employer who uses an electronic funds transfer system for payroll? 20. What payroll-related expenses does an employer and retirement pay recorded? Explain 11. How is the information that is usually on a paper paystub given to an employee if the employer is incur because of its employees? g electronic paystubs