The payroll project involves the accounts of Prevosti Farms, particularly the organization’s payroll. The company’s journal entries and ledger accounts have been captured in the payroll ledgers. Some of the major ledger accounts considered in the payroll register include the employee federal income tax payable, social security tax payable, medical tax payable, employee state income tax payable, 401(k) contributions payable, salaries, and wages payable, FUTA and SUTA taxes payable, payroll taxes expenses, and salaries and wages expenses.
The company maintains bi-monthly payments for the accounts considered in its payroll. The accounts considered in this project were taken in February and March. As such, there were two payments every month, which were recorded as journal entries, as well as, in the general ledger accounts. During these bi-monthly payments, the main processes attained was journalizing employee pay and payroll taxes and the issuance of employee pay.
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The first payment was made on 10 th February, and this was the least payment as compared to the subsequent one. However, the payments made on 24 th February, 10 th March, and 24 March were all the same in amount. This portrayed that Prevosti Farms had a constant bi-monthly payment for the three periods. According to the payroll ledgers, the company has eight employees that receive bi-monthly payments.
The ledger account that recorded the highest amount of tax deductions was the social security tax, which recorded an amount of $221.73 in the first payment and $503.31 in the subsequent payments. Conversely, FUTA tax was the least in every payment recorded in the company’s ledgers. Consequently, the FUTA tax was considered at 0.6 percent of the taxable amount without exceeding the FUTA wage base while SUTA tax was achieved by a 5.4 percent of the taxable salary.
The net pay for the eight employees of Prevosti Farms was $2983.24 in the payment of 10 th February while the subsequent payments recorded a net pay of 6550.91. As such, the salaries and wages expenses account snowballed after the first payment but also remained constant in the subsequent payments of February and March.
In conclusion, the payroll project of Prevosti Farms has captured various payroll ledger accounts established in the company. The accounts considered were for February and March based on the bi-monthly payments made by the firm. The social security tax account recorded the highest deductions, while the FUTA tax was the least. The payroll ledger of the company depicted that the business is run by eight employees who receive bi-monthly payments.
