| A | B |
|---|
| Salaries Expense | The expense account used to record employees’ earnings |
| Unemployment Taxes | Taxes that are collected to provide funds for workers who are temporarily unemployed |
| Federal Unemployment Taxes | Calculated based on employee earnings. It is 6.2% of the first $7,000 earned by each employee. |
| State Unemployment Taxes | Calculated based on employee earnings It is set by each state and varies from year to year. |
| Payroll Tax Expense | The expense account that is used to record the employer payroll taxes. |
| Federal Tax Deposit Coupon (Form 8109) | The form used by the employer to pay Social Security, Medicare, and federal income taxes to the Internal Revenue Service. |
| Electronic Federal Tax Payment System (EFTPS) | The online system that is used by larger businesses to remit payroll taxes. |
| Form W-2 | The form that summarizes an employee’s earnings and deductions for the calendar year. |
| Form W-3 | The transmittal form filed by the employer that summarizes the earnings and deductions for ALL employees for the calendar year. |
| Form 941 | The employer’s quarterly federal tax return that reports accumulated amounts of Social Security, Medicare and federal income tax withheld from employee’s earnings, as well as the Social Security and Medicare taxes owed by the employer. |
| Form 940 | Used to report the employer’s federal unemployment tax for the calendar year. |
