Journalizing Fringe Benefit Entries for Payroll Accounting: A Step-by-Step Example

The video tutorial explains how to journalize accrued benefits entries for an employee, Miss Crews, at a uniform company. It covers health benefits, retirement matching, and vacation accruals, detailing how to record these as expenses and payables. The tutorial also distinguishes between mandatory payroll taxes and optional fringe benefits, providing a comprehensive example of payroll tax journal entries.

What type of benefits does Uniform Company offer to Miss Crews?

• Only vacation accrual

• Only health insurance

• Health insurance, retirement matching, and vacation accrual

• Only retirement matching

How much does Uniform Company pay for Miss Crews' health insurance premium?

• $370

• $900

• $450

• $320

What percentage does Uniform Company match for Miss Crews' retirement contribution?

• 4%

• 5%

• 3%

• 2%

How is the vacation benefit expense calculated for Miss Crews?

• Based on a fixed monthly amount

• Based on a percentage of her salary

• Based on the number of days worked

• Based on her daily wage of $370

What is the process to convert a debit entry into a credit entry for benefits?

• Subtract the amount from the total

• Multiply the amount by two

• Change 'expense' to 'payable'

• Add 'expense' to the end of the entry