1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 13-2 Recording Employer Payroll Taxes  Calculating employer payroll taxes  Unemployment taxable earnings  Unemployment taxes  Journalizing employer payroll taxes

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Implementing Payroll and Payroll Tax Procedures 2 LESSON 13-2 Objectives: 85 Journalize payroll transactions 89 Describe record-organization-retention schedule procedures for payroll and payroll taxes 90 Prepare employer tax returns

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 13-2 UNEMPLOYMENT TAXABLE EARNINGS 2 3 page 374 1 1.Enter accumulated earnings and total earnings for each employee. 2.Enter unemployment taxable earnings. 3.Total the Unemployment Taxable Earnings column.

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 13-2 Federal Unemployment Tax = Federal Unemployment Tax Rate × Unemployment Taxable Earnings State Unemployment Tax = State Unemployment Tax Rate × Unemployment Taxable Earnings UNEMPLOYMENT TAXES page 375 $6.32=0.8%×$790.00 $42.66=5.4%×$790.00

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 13-2 JOURNALIZING EMPLOYER PAYROLL TAXES page 376 December 15. Recorded employer payroll taxes expense, $485.92, for the semimonthly pay period ended December 15. Taxes owed are: social security tax, $354.11; Medicare tax, $82.83; federal unemployment tax, $6.32; state employment tax, $42.66. Memorandum No. 63. (continued on next slide)

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 13-2 JOURNALIZING EMPLOYER PAYROLL TAXES 1 2 3 5 4 6 page 376 4. Write the debit amount.1. Write the date. 5. Write the titles of the liability accounts credited. 2. Write the title of the expense account debited. 6. Write the credit amounts.3. Write the memorandum number. (continued from previous slide)

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 13-2 TERMS REVIEW federal unemployment tax state unemployment tax page 377