•New Castle Hotels and Resorts has been in business over 25 years.
•New Castle’s management services group has engineered the financial turnaround of over 60
hotels.
•New Castle Hotels & Resorts’ 32-hotel portfolio of both owned and managed hotels, includes
upscale, upper upscale, and select-service properties that are branded as well as independent.
The 941 is prepared from the Quarterly Summary of Earnings.
2. Federal deposits are due on the 15th day of the following month.
4. Electronic Federal Tax Payment System; use if the annual federal tax deposits are more than
$200,000.
8109.
7. SUTA, FUTA, social security, and Medicare
9. Summarizes employees’ earnings and deductions for the year; sent with W-2 forms to Social
Security Administration by last day of February following close of calendar year.
11. Employer is responsible and must pay any taxes due.
13. Circular E
15. Employer
Note to instructor : These questions are designed to check students’ understanding of the new
Questions terms, concepts, and procedures presented in the chapter.
Managerial Implications: Thinking Critically
CHAPTER 11
PAYROLL TAXES, DEPOSITS, AND REPORTS
Discussion Questions
Chapter Opener: Thinking Critically
Payroll accountants are responsible for keeping accurate records of all employees so paychecks can be
processed properly and so that wage and tax statements can be prepared. A lower staff turnover rate
means fewer new employees to enter into the accounting system—a time saver for payroll accountants.
Fast Facts
Discussion Questions (continued)
17. Yes, if FUTA payable is $500 or more, deposit by last day of month following end of quarter.
19. Filed once a year, it reports net federal unemployment tax; indicates amount of additional tax
due.
21. To alleviate hardship on employees who lose their jobs.
EXERCISE 11.2
PAGE
POST.
REF.
1 2013 1
EXERCISE 11.3
BASE RATE
$70,900.00 6.2%
70,900.00 1.45%
Social Security
Medicare
TAX
1.
4.
3.
In 1, 2, and 3, the taxes may be paid with Form 941 on or before April 30, 2013.
$2,500 or more in tax is owed.
No deposit is necessary at this time since tax due is less than $2,500.
No deposit is necessary at this time since tax due is less than $2,500.
March 15, 2013. A deposit is required by the 15th of the month following the period where
GENERAL JOURNAL 24
DATE DESCRIPTION DEBIT CREDIT
AMOUNT
1,028.05
$4,395.80
EXERCISE 11.4
PAGE
POST.
REF.
1 2013 1
5 5
EXERCISE 11.5
EXERCISE 11.6
PAGE
POST.
REF.
1 2013 1
5 5
EXERCISE 11.7
GENERAL JOURNAL 30
DATE DESCRIPTION DEBIT CREDIT
GENERAL JOURNAL 14
DATE DESCRIPTION DEBIT CREDIT
EXERCISE 11.8
ESTIMATED
PREMIUM
ESTIMATED EARNINGS RATEWORK
CLASSIFICATION
PROBLEM 11.2A
PAGE
POST.
REF.
1 2013 1
2 April 8 Payroll Taxes Expense 32298 2
3 Social Security Tax Payable 14458 3
4 Medicare Tax Payable 3 3 81 4
GENERAL JOURNAL 12
DATE DESCRIPTION DEBIT CREDIT
PROBLEM 11.3A
PAGE
POST.
REF.
1 2013 1
2 July 15 Social Security Tax Payable 1 45675 2
GENERAL JOURNAL 24
DATE DESCRIPTION DEBIT CREDIT
PROBLEM 11.3A (continued)
PROBLEM 11.4A
State unemployment insuranc
e
= 0.017 × $25,863.00 =
PAGE
POST.
REF.
1 2013 1
PROBLEM 11.5A
PAGE
POST.
REF.
1 2014 1
DATE DESCRIPTION DEBIT CREDIT
$439.67
CREDIT
GENERAL JOURNAL 15
GENERAL JOURNAL 82
DATE DESCRIPTION DEBIT
PROBLEM 11.5A (continued)
PROBLEM 11.6A
1.
2.
PAGE
POST.
REF.
1 2013 1
3.
DATE DEBIT CREDITDESCRIPTION
ESTIMATED
EARNINGS
GENERAL JOURNAL 8
INSURANCE
RATE
WORK CLASSIFICATION
ESTIMATED
PREMIUMS
WORK CLASSIFICATION ACTUAL
EARNINGS
ACTUAL
PREMIUMS
INSURANCE
RATE
PROBLEM 11.6A (continued)
4 .
PAGE
POST.
REF.
1 2013 1
2 Dec. 31 Workers’ Compensation Insurance Expense 3 8 9 84 2
3 Workers’ Compensation Insurance Payable 3 8 9 84 3
PROBLEM 11.1B
AMOUNT
Social Security
GENERAL JOURNAL 98
DATE DESCRIPTION DEBIT CREDIT
TAX
$4,000
RATE
BASE
$248.00
6.2%