Accounting chapt 12

Salaries Expense

• The expense account used to record employees’ earnings.

• the exspence account for everyone

unemployment taxes

• Taxes collected to provide funds for workers who are temporarily out of work; usually paid only by the employer (FUTA and SUTA).

• taxes collected to give people a retirement

Form 940

• Form that reports the employer’s federal unemployment taxes.

• forms for the federal tax

Form 941

• Employer’s Quarterly Federal Tax Return; form used to report accumulated amounts of FICA and federal income tax withheld from employees’ earnings for the quarter, as well as FICA tax owed by the employer.

• this is the money removed

Form W-2

• Wage and Tax Statement; form that summarizes an employee’s earnings and amounts withheld for federal, state, and local taxes.

• how every single person pays their taxes

Electronic Federal Tax Payment System (EFTPS)

• system used to make money

• System used by large businesses to deposit tax payments by electronic funds transfer.

Form 8109

• the tax people pay on properties

• Federal Deposit Tax Coupon; form sent with payment for FICA and federal income taxes or federal unemployment taxes.

Payroll Tax Expense

• The expense account used to record the employer’s payroll taxes (FICA, FUTA, SUTA).

• the fica account only

State Unemployment Tax Act (SUTA)

• Law that requires employers to pay employment taxes to individual states.

• people paying state tax

Federal Unemployment Tax Act (FUTA)

• Law that requires employers to pay unemployment taxes to the federal government

• law that makes people pay to make money on federal tax