| A | B |
|---|
| SS tax | 6.2% |
| Medicare tax | 1.45% |
| FUTA | .8% |
| SUTA | 5.4% |
| federal income tax | determined by tax table |
| Salary Exp | used to record the amt of gross earnings |
| Payroll Tax Exp | used to record the amt of employer payroll taxes |
| January 31 | date W-2's must be mailed |
| W-2 | summarizes 1 employee's earnings and payroll taxes for 1 year |
| W-4 | withholding stmt; states marital status and # of allowances |
| SS and Medicare tax | payroll taxes both employee and employers have to pay |
| posting | process of transferring info from JE to t-accounts |
| CR | normal balance of liabilities |
| DR | normal balance of expenses |
| journalizing | process of recording date,DR and CR account, amounts for a bus transaction |
| commission | earnings based on % of sales |
| hourly wage | earnings based on hourly rate and # of hours worked |
| salary | earnings for most professionals |
| overtime | working more than 40 hours/wk |
| overtime rate | 1.5 times the regular hourly rate |
| net pay | gross earnings - total deductions |
| 401k contributions | an example of a voluntary payroll deduction |
| 7.65% | FICA |
| cash | account CR when a payment is made |
| deduction | subtraction from gross earnings |
