Asked by Daisy Terrado on May 12, 2024
Verified
Employers' responsibilities for payroll do not include:
A) Providing each employee with an annual report of his or her wages subject to FICA and federal income taxes along with the amount of these taxes withheld.
B) Filing Form 941,the Employer's Quarterly Federal Tax Return.
C) Filing Form 940,the Annual Federal Unemployment Tax Return.
D) Maintaining individual earnings records for each employee.
E) Recording the employee Federal Income Tax withholding as a debit to the Federal Income Tax Expense account.
FICA
Federal Insurance Contributions Act; a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.
Federal Income Taxes
Taxes imposed by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.
Form 941
A U.S. tax form used by employers to report quarterly federal payroll taxes.
- Detail the duties of an employer in the context of payroll and emphasize the critical nature of accurate payroll documentation.
Verified Answer
NA
nathan allredMay 16, 2024
Final Answer :
E
Explanation :
Employers are responsible for maintaining accurate payroll records, including individual earnings records for each employee, and for filing necessary tax forms such as Form 941 and Form 940. They must also provide employees with annual wage and tax statements. However, recording the employee Federal Income Tax withholding is not debited to a Federal Income Tax Expense account; instead, it is recorded as a liability because it is an amount the employer owes to the government, not an expense of the employer.
Learning Objectives
- Detail the duties of an employer in the context of payroll and emphasize the critical nature of accurate payroll documentation.