Flashcards
QBO Chapter 8 key terms
Cards in this deck (7)
- 1Employees Listcontains employee information such as address, telephone, salary or wage rate, and Social Security number
- 2Employeeshired by a business with the business paying wages, salary, payroll taxes and employee benefits, such as health insurance. As you learned in the prior section, employees can be added to the Employees List by selecting Payroll > Employees.
- 3Contractorspaid a contracted fee, a fee specified by a contract. The business does not pay payroll taxes or additional benefits. Instead, the contractor is responsible for paying self-employment taxes. Contractors are vendors.
- 4time trackingpermits us to track the amount of time worked. QBO uses time tracked to:
Calculate employee paychecks
Calculate contractor payments
Transfer time to sales invoices to bill customers for work performed
Work can be performed by employees, contractors, or owners. The time-tracking feature can be used to track time worked by any of the three. How we record the payment, however, depends upon the status of the individual who performs the work: employee, contractor, or business owner.
So it’s important that we determine the status of the individual performing the work. The status determines whether we record payments to the individual as an employee paycheck, vendor payment, or owner distribution. - 5INVOICE TRACKED TIMEwe can transfer billable tracked time to an Invoice to bill a specific customer for the time.
- 6Payroll liabilitiesinclude amounts for:
Federal income taxes withheld from employee paychecks
State income taxes withheld from employee paychecks
FICA (Social Security and Medicare, including both the employee and the employer portions)
Unemployment taxes
Federal income taxes, state income taxes, and the employee portion of FICA are withheld from the employee, and the company has an obligation (liability) to remit these amounts to the appropriate tax agency. The employer share of FICA and unemployment taxes are payroll taxes the employer owes. - 7Payroll tax formssummarize the amount of payroll withholdings that have been collected and remitted.
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- QBO Accounting Information Systems Chapter 8 key terms
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- Stephanie Poole
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