lease write a four-to-six sentence paragraph on the following questions.
Describe the three federal filing requirements for a company at the end of the year.
What is the difference between Form 940 and Form 941?
Betty Meyer makes $40,000 per year as an exempt employee. She worked 25 hours of overtime in the month of March. Payday for wages earned in the month of March is April 7. Ignoring Federal and State income tax withholdings, how much would she receive for September net of Social Security and Medicare taxes? What journal entry would be made on March 31 for wages owed to Betty? What journal entry would be made when she is paid on April 7?
Three federal filing requirements for a company at the end of the year
(1) At the end of the year, a company should file their annual income tax return, FICA Payroll tax returns, and FUTA tax return
(2)Each company must file an 1120, 941, and 940 form with the IRS by the specified due date
(3)Due date is March 15 for a corporation with a December year end.
Difference between Form 940 and Form 941
940 and 941 are not similar.The form 940 is used for Federal Unemployment Tax.
Form 941 is a quarterly Payroll report which the corporation files in regards employees’ social security andmedicare tax liabilities.
Betty Meyer as an exempt employee
As an exempt employee will not receive additional compensation for overtime worked. Exempt employees are “exempt” from time reporting and as such receive a flat salary. Professionals are usually exempt employees.
Mary receives $3,145 net pay which considers her FICA liability but not any federal tax withholding. On March 31, the employer will debit salaries expense and credit salaries payable. On april 7, the employer will debit salaries payable and credit cash to record the payment
