Answer:
Employers' responsibilities for payroll do not include Recording the employee federal income tax withholding as a debit to the federal income tax expense account.
Explanation:
The employer has to file a 941 tax return quarterly. It's used to report employees' withholding, employees' FICA tax deduction, medicare tax deduction, FICA expense, and medicare expense.
The employer files a 940 once a year. It is the federal unemployment tax return. The employer shows each employee's earnings on the quarterly state unemployment tax return.
The employer payroll expenses include the employer's matching portion of the FICA and medicare tax. The other items are liabilities, not expenses.
Thus, Employers' responsibilities for payroll do not include recording an expense for the employee Federal Income Tax withholding.
Answer:
Recording the employee federal income tax withholding as a debit to the federal income tax expense account.
Explanation:
The employer is required to file the 941 tax return every three months. This four-page form notifies the IRS of employees' earnings and liabilities, reporting withholding of tax, for example federal income and Social Security/Medicare taxes. If an employee does not work in one or more quarters, they do not need to submit this form. Generally, this formulation is presented at the end of April, July, October and January.
While Form 940 is only filed once a year. It is used to report the annual tax in the Federal Unemployment Tax Law. This tax provides funds for the payment of unemployment compensation to people who have lost their jobs. This tax is only paid by employers and is not deducted from wages to employees.
So the answer is recording the employee federal income tax withholding as a debit to the federal income tax expense account.
