Learning Objectives

1. Explain how and when payroll taxes are paid to the government.
2. Compute and record the employer’s social security and Medicare taxes.
3. Record deposit of social security, Medicare, and employee income taxes.
4. Prepare an Employer’s Quarterly Federal Tax Return, Form 941.
5. Prepare Wage and Tax Statement (Form W-2) and Annual Transmittal of Wage and Tax Statements (Form W-3).
6. Compute and record liability for federal and state unemployment taxes record payment of the taxes.
7. Prepare an Employer’s Federal Unemployment Tax Return, Form 940 or 940-EZ.
8. Compute and record workers’ compensation insurance premiums.
9. Define the accounting terms new to this chapter.