Chapter 9 key terms and definitions Flashcards
What are contingent Liabilities?
Obligations to make a future payment if, and oliy if, an uncertain future event occurs.
What are current liabilities?
Obligations due to be paid or settled within one year or the company’s operating cycle, whichever is longer.
Whar is the current portion of long term debt?
Portion of long term debt due within one year or the operation cycle, whichever is longer; reported under current liabilities.
What is deferred income tax liability?
Corporation income taxes that are deferred until future years becasue of temporary differences between GAAP and tax rules.
What are employee benefits?
Additional compensation paid to or on behalf of employees such as premiums for medical, dental, life and disability insurance, and contributions to pension plans.
What is an employees earnings report?
Record of an employee’s net pay, gross pay, deductions, and year to date payroll information.
What is an estimated liability?
Obligation of an uncertain amount that can be reasonably estimated.
What is a federal depository bank?
Bank authorized to accept deposits of amount payable to the federal government.
What is the federal insurance contributions act Taxes?
Taxes assessed on both employers and employees; for social securtiy and medicare programs.
What is Federal unemployment Taxes?
payroll taxes on employers assessed by the federal government to support its unemployment insurance program.
What is form 940?
IRS form used to report an employers federal unemployment taxes FUTA on an annual filing basis.
What is form 941?
IRS form filed to report FICA taxes owed and remitted.
What is form W-2?
Annual report by an employer to each employee showing the employees wages subject to FICA and federal income taxes along with amounts withheld.
What is Form W-4?
Withholding allowance certificate, filed with the employer, identifying the number of withholding allowances claimed.
What is gross pay?
Total compensation earned by an employee
What is a known Liability?
Obligation of a company with little uncertainty; set by agreements, contracts, or laws; also called definitely determinable liabilities.
What are long term liabilities?
Obligations not due to be paid within one year or the operating cycle, whichever is longer.
What is merit rating?
Rating assigned to an employer by a state based on the employers record of employment.
What is net pay?
Gross pay less all deductions; also called take home pay.
What is a payroll bank account?
Bank account usedsolely for paying emplyees; each pay period an amount equal to the total empoyees net pay is deposited in it and the payroll checks are drawn on it.
What are payroll deductiions?
Amounts withheld from an employees gross pay; also called withholdings.
What is a payroll register/
Record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, netpay, and deductions.
What are short term note payable?
Current obligation in the form of a written promissory note.
What are state unemployment taxes?
State payroll taxes on employers to dsupport its unemployment programs.
