CPP Payroll Accounting & Reporting Flashcards
6 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPP Payroll Accounting & Reporting flashcards as text
Which journal entry correctly records the employer's share of Social Security tax?
Answer: Debit Payroll Tax Expense, Credit FICA Taxes Payable
The employer's share of Social Security tax is recorded by debiting Payroll Tax Expense and crediting FICA Taxes Payable.
What is the primary purpose of a payroll register?
Answer: To serve as the source document for payroll journal entries
The payroll register summarizes all payroll data for a pay period and serves as the primary source for recording journal entries.
When recording gross wages, the offsetting credits typically go to:
Answer: Cash and various withholding liability accounts
Gross wages are debited to Wages Expense while credits go to cash (net pay) and various withholding liability accounts.
Form W-3 is submitted to which agency along with Copy A of all W-2 forms?
Answer: The Social Security Administration
Form W-3 transmits all Copy A W-2 forms to the Social Security Administration by January 31.
A payroll bank account reconciliation primarily verifies that:
Answer: Checks issued match the bank statement debits
Payroll bank reconciliation matches issued payroll checks against bank statement debits to detect errors or fraud.
Which document is used to reconcile total wages on quarterly Form 941 filings to annual W-2 wages?
Answer: Form W-3
Form W-3 annual totals should tie to the sum of four quarterly Form 941 filings, ensuring wage reporting consistency.