American Payroll Association

Chapter 9 Employer Taxes, Payments, and Reports American Payroll Association Professional association for over 22,000 payroll professionals Provides National Payroll Week Survey Training, certification, compliance updates, networking opportunities for members Royalty Free PhotoDisc Blue/ Getty Images Copyright Houghton Mifflin Company. All rights reserved. 9 2 1

Performance Objectives 1. Calculate the amount of payroll tax expense and journalize the entry. 2. Journalize the entry for the deposit of employees federal income taxes withheld and FICA taxes (both employees withheld and employer s matching share) and prepare the deposit coupon. 3. Journalize the entries for the payment of employer s state and federal unemployment taxes. 4. Journalize the entry for the deposit of employees state income taxes withheld. Copyright Houghton Mifflin Company. All rights reserved. 9 3 Performance Objectives (cont d) 5. Complete Employer s Quarterly Federal Tax Return, Form 941. 6. Prepare W-2 and W-3 forms and Form 940. 7. Calculate the premium for workers compensation insurance, and prepare the entry for payment in advance. 8. Determine the amount of the end-of-the-year adjustments for (a) workers compensation insurance and (b) accrued salaries and wages, and record the adjustments. Copyright Houghton Mifflin Company. All rights reserved. 9 4 2

Chapters 8 and 9: Overview Chapter 8 Withhold employees taxes. Create liabilities (payables). Chapter 9 Pay off those liabilities. Calculate and pay employer taxes. Copyright Houghton Mifflin Company. All rights reserved. 9 5 Performance Objective 1 Calculate the amount of payroll tax expense and journalize the entry. Royalty-Free/Digital Vision Copyright Houghton Mifflin Company. All rights reserved. 9 6 3

Employer Identification Number The number assigned each employer by the Internal Revenue Service Used to submit reports and payments for FICA taxes and federal income tax withheld Listed on all deposit slips Individuals have Social Security numbers. Employers have employer identification number. IRS uses both numbers to track taxes. The IRS assigns EIN numbers in the following format: XX-XXXXXXX. Copyright Houghton Mifflin Company. All rights reserved. 9 7 Employer s Payroll Tax Expense A general expense account used for recording: FICA tax (employer s share) State unemployment tax (varies by state) Federal unemployment tax Paid by employer on behalf of employees Copyright Houghton Mifflin Company. All rights reserved. 9 8 4

Payroll Tax Components FICA tax (employer s share) Calculate Social Security amount (using 6.2%, $94,200 ceiling) Calculate Medicare amount (using 1.45%, no ceiling) State unemployment tax (SUTA) Levied only on the employer in most states Rate varies by state (book assumes 5.4%, $7,000 ceiling) Pays subsistence benefits to unemployed workers Federal unemployment tax (FUTA) Levied only on the employer Rate varies (book assumes 0.8%, $7,000 ceiling) Used to administer federal unemployment fund Copyright Houghton Mifflin Company. All rights reserved. 9 9 Calculate Payroll Tax Expense Take taxable amounts directly from payroll register: FICA tax (employer s share) State unemployment tax (varies by state) Federal unemployment tax Copyright Houghton Mifflin Company. All rights reserved. 9 10 5

SUTA FUTA Do not use calculated amounts from employee s deductions. You must take totals and recalculate amounts. (As a result, there may be rounding differences.) FICA (Add SSI and Medicare together) State Unemployment Tax (Rates Vary) 958.20 x 5.4% = $51.74 Federal Unemployment Tax (Rates Vary) 958.20 x 0.8% = $7.67 Copyright Houghton Mifflin Company. All rights reserved. 9 11 Journalize Payroll Tax Expense Entry Payroll taxes are an expense of doing business. Debit Payroll Tax Expense. Credit associated payable account. General Journal Page 9 Date Description Post. Ref. Debit Credit 20-- Oct. 7 Payroll Tax Expense 1,490.72 FICA Tax Payable 1,431.31 State Unemployment Tax Payable 51.74 Federal Unemployment Tax Payable 7.67 To record employer's share of FICA tax and employer's state and federal unemployment taxes. Copyright Houghton Mifflin Company. All rights reserved. 9 12 6

T Accounts: Beginning Balance Payroll Tax Expense FICA Tax Payable DR CR DR CR + - - + 1,431.33 Balance from employees deductions State Unemployment Tax Payable DR CR - + Federal Unemployment Tax Payable DR CR - + Copyright Houghton Mifflin Company. All rights reserved. 9 13 T Accounts: Employer s FICA Payroll Tax Expense FICA Tax Payable DR CR DR CR + - - + 1,431.31 1,431.33 1,431.31 State Unemployment Tax Payable DR CR - + Federal Unemployment Tax Payable DR CR - + Copyright Houghton Mifflin Company. All rights reserved. 9 14 7

T Accounts: Employer s SUTA Payroll Tax Expense FICA Tax Payable DR CR DR CR + - - + 1,431.31 1,431.33 51.74 1,431.31 State Unemployment Tax Payable DR CR - + 51.74 Federal Unemployment Tax Payable DR CR - + Copyright Houghton Mifflin Company. All rights reserved. 9 15 T Accounts: Employer s FUTA Payroll Tax Expense FICA Tax Payable DR CR DR CR + - - + 1,206.22 1,431.31 1,431.33 51.74 1,431.31 7.67 State Unemployment Tax Payable DR CR - + 51.74 Federal Unemployment Tax Payable DR CR - + 7.67 Copyright Houghton Mifflin Company. All rights reserved. 9 16 8

T Accounts: Total Payroll Tax Expense Payroll Tax Expense FICA Tax Payable DR CR DR CR + - - + 1,431.31 1,431.33 51.74 1,431.31 7.67 1,490.72 State Unemployment Tax Payable DR CR - + Total Payroll Tax Expense, journalized and posted 51.74 Federal Unemployment Tax Payable DR CR - + 7.67 Copyright Houghton Mifflin Company. All rights reserved. 9 17 Based on Payroll Register, Make Journal Entry for Employee Salaries and Wages Expense General Journal Page 9 Date Description Post. Ref. Debit Credit 20-- Oct. 7 Sales Wages Expense 14,332.15 Office Wages Expense 4,467.28 Employees' Federal Income Tax Payable 2,838.00 FICA Tax Payable 1,431.33 Employees' State Income Tax Payable 567.60 Employees' Medical Insurance Payable 320.70 Employees' United Way Payable 185.00 Accounts Receivable 30.00 Wages Payable 13,426.80 Payroll Register, page 56, for week ended October 7. Page 299 Copyright Houghton Mifflin Company. All rights reserved. 9 18 9

From Taxable Earnings Columns of Payroll Register, Calculate and Journalize Payroll Tax Expense General Journal Page 9 Date Description Post. Ref. Debit Credit 20-- Oct. 7 Payroll Tax Expense 1,490.72 FICA Tax Payable 1,431.31 State Unemployment Tax Payable 51.74 Federal Unemployment Tax Payable 7.67 To record employer's share of FICA tax and employer's state and federal unemployment taxes. Page 299 Copyright Houghton Mifflin Company. All rights reserved. 9 19 Journalize Cash Payments to Employees General Journal Page 11 Date Description Post. Ref. Debit Credit 20-- Oct. 8 Wages Payable 13,426.80 Cash Payroll Bank Account 13,426.80 Paid wages for week ended October 7. Page 300 Copyright Houghton Mifflin Company. All rights reserved. 9 20 10

Performance Objective 2 Journalize the entry for the deposit of employees federal income taxes withheld and FICA taxes (both employees withheld and employer s matching share) and prepare the deposit coupon. Royalty Free C Squared Studios/ Getty Images Copyright Houghton Mifflin Company. All rights reserved. 9 21 Federal Tax Deposits Include combined total of: 1. Employees federal income taxes withheld 2. Employees FICA taxes withheld 3. Employer s share of FICA taxes Made to authorized commercial or Federal Reserve banks and forwarded to U.S. Treasury Timing depends on amounts owed (the more you owe, the more often you pay) Copyright Houghton Mifflin Company. All rights reserved. 9 22 11

Prepare the Deposit Coupon Page 301 Copyright Houghton Mifflin Company. All rights reserved. 9 23 Journal Entry for Payments of FICA and Federal Income Tax Withholdings Reduces payables (liabilities) Reduces Cash Leaves payable accounts with zero balances after posting This example company pays taxes semi-weekly FICA Tax Payable DR CR - + 5,725.32 5,725.32 0.00 Employees' Federal Income Tax Payable DR CR - + 5,676.00 5,676.00 0.00 General Journal Page 3 Date Description Post. Ref. Debit Credit 20-- Oct. 15 Employees' Federal Income Tax Payable 5,676.00 FICA Tax Payable 5,725.32 Cash 11,401.32 Issued check for federal tax deposit, Bangor Bank. Copyright Houghton Mifflin Company. All rights reserved. 9 24 12

Performance Objective 3 Journalize the entries for the payment of employer s state and federal unemployment taxes SUTA FUTA Royalty Free C Squared Studios/ Getty Images Copyright Houghton Mifflin Company. All rights reserved. 9 25 Payments of State Unemployment Tax (SUTA) Usually paid quarterly Due by the end of the month following the end of the quarter (same as Form 941) After posting, the payable account has a zero balance. Journal entry looks like this: (p. 302) General Journal State Unemployment Tax Payable DR CR - + 3,257.55 3,257.55 0.00 Date Description Ref. Debit Credit 20-- April 30 State Unemployment Tax Payable 3,257.55 Cash 3,257.55 Issued check for payment of state unemployment tax. Post. Page 17 Copyright Houghton Mifflin Company. All rights reserved. 9 26 13

Payments of Federal Unemployment Tax (FUTA) Calculated quarterly (due dates same as form 941) If liability > $100, funds are submitted with deposit card. After posting, the payable account has a zero balance. Journal entry looks like this: Federal Unemployment Tax Payable DR CR - + 482.60 482.60 0.00 Date Description General Journal Copyright Houghton Mifflin Company. All rights reserved. 9 27 Post. Ref. Debit Credit Page 17 20-- April 30 Federal Unemployment Tax Payable 482.60 Cash 482.60 Issued check for deposit of federal unemployment tax. (p. 303) Performance Objective 4 Journalize the entry for the deposit of employees state income taxes withheld. Royalty-Free/Photodisc Blue Copyright Houghton Mifflin Company. All rights reserved. 9 28 14

Deposits of Employees State Income Tax Withholding Deposited quarterly (due dates same as SUTA) After posting, the payable account has a zero balance Journal entry looks like this: State Income Tax Payable DR CR - + 1,674.10 1,674.10 0.00 General Journal Page 17 Date Description Post. Ref. Debit Credit 20-- April 30 Employees State Income Tax Payable 1,674.10 Cash 1,674.10 Issued check for state income tax deposit. (p. 304) Copyright Houghton Mifflin Company. All rights reserved. 9 29 Performance Objective 5 Complete Employer s Quarterly Federal Tax Return, Form 941. Royalty-Free/Photodisc Blue Copyright Houghton Mifflin Company. All rights reserved. 9 30 15

Form 941 (Employer s Quarterly Federal Tax Return) A quarterly report showing the tax liability for withholdings of employees federal income tax and FICA taxes and the employer s share of FICA taxes; total tax deposits made in the quarter are also listed on Form 941 Due April 30, July 31, October 31, January 31 See textbook for example, page 305. Homework Problem 9-3A is a 941 form to fill out. Copyright Houghton Mifflin Company. All rights reserved. 9 31 Performance Objective 6 Prepare W-2 and W-3 forms and Form 940. Royalty-Free/Photodisc Blue Copyright Houghton Mifflin Company. All rights reserved. 9 32 16

Form W-2 (Wage and Tax Statement) Form containing information about employee earnings and tax deductions for the year After last day of calendar year, employer must complete and furnish employee with at least two copies (before January 31) One copy to the Social Security Administration One copy to state (if appropriate) Two or more copies to employee for: Employee s records Employee to send to IRS Employee to send to state and local tax agencies if those taxes withheld One copy for employer s records Copyright Houghton Mifflin Company. All rights reserved. 9 33 Form W-2 (p. 307) Copyright Houghton Mifflin Company. All rights reserved. 9 34 17

Form W-3 (Transmittal of Wage and Tax Statements) Annual report (due Feb. 28) sent to Social Security Administration listing: Total wages and tips Total federal income taxes withheld Total Social Security and Medicare taxable wages and taxes withheld Must attach Copy A of employees W-2 forms Total amounts must match grand total of W-2 and four quarterly 941 forms Copyright Houghton Mifflin Company. All rights reserved. 9 35 Form W-3 (page 309) Copyright Houghton Mifflin Company. All rights reserved. 9 36 18

Form 940 (Employer s Annual Federal Unemployment Tax Return) Due Jan. 31, or Feb. 10 if payments made in full Lists: Total wages paid to employees Total wages subject to federal unemployment tax Total federal unemployment tax Other information Copyright Houghton Mifflin Company. All rights reserved. 9 37 Form 940-EZ (p. 311) Copyright Houghton Mifflin Company. All rights reserved. 9 38 19

Performance Objective 7 Calculate the premium for workers compensation insurance, and prepare the entry for payment in advance. Royalty Free PhotoDisc Blue/ Getty Images Copyright Houghton Mifflin Company. All rights reserved. 9 39 Workers Compensation Insurance Workers compensation insurance provides benefits for employees injured or killed on the job. Rates vary according to the degree of risk inherent in the job. Plans may be sponsored by states or by private firms. Employer pays premium in advance, based on estimated payroll for the year. Rates are adjusted after exact payroll is known. Copyright Houghton Mifflin Company. All rights reserved. 9 40 20

Calculate the Premium in Advance Classification Predicted Payroll Rate (Percent) Estimated Premium Office Work $182,000 0.15 $182,000 x.0015 = $ 273.00 Sales Work 660,000 0.50 $660,000 x.0050 = 3,300.00 Total estimated premium $ 3,573.00 (p. 312) Copyright Houghton Mifflin Company. All rights reserved. 9 41 Prepare the Entry for Payment in Advance (p. 312) Copyright Houghton Mifflin Company. All rights reserved. 9 42 21

Calculate Exact Premium at End of Year Classification Actual Payroll Rate (Percent) Estimated Premium Office Work $188,990 0.15 $188,990 x.0015 = $ 283.49 Sales Work 672,540 0.50 $672,540 x.0050 = 3,362.70 Total estimated premium $3,646.19 (p. 313) Copyright Houghton Mifflin Company. All rights reserved. 9 43 Performance Objective 8a Determine the amount of the end-of-the-year adjustment for worker s compensation insurance, and record the adjustment. Royalty Free PhotoDisc Blue/ Getty Images Copyright Houghton Mifflin Company. All rights reserved. 9 44 22

Calculate Unpaid Premium and Make Adjusting Entry $3,646.19 Total exact premium 3,573.00 Less total estimated premium paid $ 73.19 Additional premium owed (p. 313) Copyright Houghton Mifflin Company. All rights reserved. 9 45 Performance Objective 8b Determine the amount of the end-of-the-year adjustment for accrued salaries and wages, and record the adjustment. Royalty Free PhotoDisc Blue/ Getty Images Copyright Houghton Mifflin Company. All rights reserved. 9 46 23

Accrued Salaries and Wages Are there adjusting entries for wages expense and wages payable? Yes, salaries and wages accrue between the last payday and the end of the year. Are there adjusting entries for FICA, federal income tax withholdings, or payroll taxes? No. These taxes are not legal obligations until employees are paid. Copyright Houghton Mifflin Company. All rights reserved. 9 47 Accrued Salaries and Wages (cont d) Assume $1,200 of salaries accrue for the time between the last payday and the end of the year. (p. 314) General Journal Page 11 Date Description Post. Ref. Debit Credit 20-- Dec. 31 Salary Expense 1,200.00 Salaries Payable 1,200.00 There is no adjusting entry for Payroll Tax Expense because there is no legal liability. Copyright Houghton Mifflin Company. All rights reserved. 9 48 24

Internet Research: IRS Find the IRS website. Locate the section called Businesses with Employees. How long does the IRS require businesses to keep employment tax records? What are employers required to do when they hire a new employee? Employers must keep employment tax records for 4 years. They are required to verify that the employee is legally eligible to work in the United States. Employees fill out Form I-9, Employment Eligibility Verification, and Form W-4, Employee s Withholding Allowance Certificate. Copyright Houghton Mifflin Company. All rights reserved. 9 49 Review Question Q. What is contained on a Form W-3? A. Total wages and tips; total federal income taxes withheld; total Social Security and Medicare taxable wages and taxes withheld Copyright Houghton Mifflin Company. All rights reserved. 9 50 25

Review Question Q. Which tax report reflects the tax liability for withholdings of employees federal income tax, FICA taxes, and the employer s share of FICA taxes? A. Form 941 Copyright Houghton Mifflin Company. All rights reserved. 9 51 Review Question Q. When are SUTA taxes usually due? A. Usually paid quarterly; due by the end of the month following the end of the quarter Copyright Houghton Mifflin Company. All rights reserved. 9 52 26

Review Question Q. What adjusting entry is made at year-end for accrued payroll taxes? A. No entry; no legal obligation exists Copyright Houghton Mifflin Company. All rights reserved. 9 53 Review Question Q. When making a federal tax deposit, what three types of taxes are usually contained? A. Employees federal income taxes withheld; employees FICA taxes withheld; and employer s share of FICA taxes Copyright Houghton Mifflin Company. All rights reserved. 9 54 27

Demonstration Problem Payroll Problem Payroll Register for Week Ended Oct. 14, 20-- Names Beg. Cum. Earn. Week's Earnings Unemployment FICA FICA Chin, Sue 84,500.00 1,430.00 UE Max SS Max Medicare Max Chueng, Vicky 86,000.00 2,050.00 $7,000.00 $94,200.00 Girvin, M. A. 56,900.00 680.00 Fed Rate SS Rate M Rate Ho, Dennis 43,690.00 700.00 0.008 6.20% 1.45% Pham, H. L. 5,255.00 650.00 State Rate 0 0 Smith, J. C. 6,750.00 550.00 0.054 0 0 Copyright Houghton Mifflin Company. All rights reserved. 9 55 Look to Beginning Earnings to Determine If There Are Taxable Earnings Name Beginning Cumulative Earnings Total Ending Cumulative Earnings Unemployment Taxable Earnings Social Security Medicare Chin, Sue 84,500.00 1,430.00 Chueng, Vicky 86,000.00 2,050.00 Girvin, M. A. 56,900.00 680.00 Ho, Dennis 43,690.00 700.00 Pham, H. L. 5,255.00 650.00 Smith, J. C. 6,750.00 550.00 Totals 283,095.00 6,060.00 0.00 0.00 0.00 0.00 Copyright Houghton Mifflin Company. All rights reserved. 9 56 28

Calculate Ending Cumulative Earnings Beginning Cumulative Payroll Register for Week Ended Oct. 14, 20-- Ending Cumulative Taxable Earnings Social Name Earnings Total Earnings Unemployment Security Medicare Chin, Sue 84,500.00 1,430.00 85,930.00 Chueng, Vicky 86,000.00 2,050.00 88,050.00 Girvin, M. A. 56,900.00 680.00 57,580.00 Ho, Dennis 43,690.00 700.00 44,390.00 Pham, H. L. 5,255.00 650.00 5,905.00 Smith, J. C. 6,750.00 550.00 7,300.00 Totals 283,095.00 6,060.00 289,155.00 0.00 0.00 0.00 Copyright Houghton Mifflin Company. All rights reserved. 9 57 Calculate Taxable Earnings Payroll Register for Week Ended Oct. 14, 20-- Beginning Cumulative Ending Cumulative Taxable Earnings Social Name Earnings Total Earnings Unemployment Security Medicare Chin, Sue 84,500.00 1,430.00 85,930.00 0.00 1,430.00 1,430.00 Chueng, Vicky 86,000.00 2,050.00 88,050.00 0.00 2,050.00 2,050.00 Girvin, M. A. 56,900.00 680.00 57,580.00 0.00 680.00 680.00 Ho, Dennis 43,690.00 700.00 44,390.00 0.00 700.00 700.00 Pham, H. L. 5,255.00 650.00 5,905.00 650.00 650.00 650.00 Smith, J. C. 6,750.00 550.00 7,300.00 250.00 550.00 550.00 Totals 283,095.00 6,060.00 289,155.00 900.00 6,060.00 6,060.00 Copyright Houghton Mifflin Company. All rights reserved. 9 58 29

Calculate Deductions, Payments, and Salary Expense Payroll Register for Week Ended Oct. 14, 20-- Beginning Cumulative Ending Cumulative Taxable Earnings Social Name Earnings Total Earnings Unemployment Security Medicare Chin, Sue 84,500.00 1,430.00 85,930.00 0.00 1,430.00 1,430.00 Chueng, Vicky 86,000.00 2,050.00 88,050.00 0.00 2,050.00 2,050.00 Girvin, M. A. 56,900.00 680.00 57,580.00 0.00 680.00 680.00 Ho, Dennis 43,690.00 700.00 44,390.00 0.00 700.00 700.00 Pham, H. L. 5,255.00 650.00 5,905.00 650.00 650.00 650.00 Smith, J. C. 6,750.00 550.00 7,300.00 250.00 550.00 550.00 Totals 283,095.00 6,060.00 289,155.00 900.00 6,060.00 6,060.00 Payroll Register for Week Ended Oct. 14, 20-- Deductions Payments Salary Expense Federal Income Tax State Income Tax Social Security Tax Medicare Tax Total Deductions Net Amount Ck. No. Salary Expense 238.00 28.56 88.66 20.74 375.96 1,054.04 714 1,430.00 348.50 41.82 127.10 29.73 547.15 1,502.85 715 2,050.00 55.00 6.60 42.16 9.86 113.62 566.38 716 680.00 85.00 10.20 43.40 10.15 148.75 551.25 717 700.00 45.00 5.40 40.30 9.43 100.13 549.87 718 650.00 46.00 5.52 34.10 7.98 93.60 456.40 719 550.00 817.50 98.10 375.72 87.89 1,379.21 4,680.79 6,060.00 Payables Expense Copyright Houghton Mifflin Company. All rights reserved. 9 59 Record Salary Expense General Journal Page 17 Date Description Post. Ref. Debit Credit 20-- Oct. 14 Salary Expense 6,060.00 Copyright Houghton Mifflin Company. All rights reserved. 9 60 30

Record Payables to Make DR = CR General Journal Page 17 Date Description Post. Ref. Debit Credit 20-- Oct. 14 Salary Expense 6,060.00 Employees' Federal Income Tax Payable 817.50 Employees' State Income Tax Payable 98.10 FICA Tax Payable 463.61 Salaries Payable 4,680.79 Payroll register for week ended October 14. Copyright Houghton Mifflin Company. All rights reserved. 9 61 Calculate Payroll Taxes Payroll Taxes Taxable Amount x % = Tax FICA Tax (Employer s Share) Social Security Tax 6,060.00 x 6.20% = $375.72 Medicare Tax 6,060.00 x 1.45% = $87.87 FICA Tax (Employer s Share) $463.59 State Unemployment Tax (Rates Vary) 900.00 x 5.4% = $48.60 Federal Unemployment Tax (Rates Vary) 900.00 x 0.8% = $7.20 Copyright Houghton Mifflin Company. All rights reserved. 9 62 31

Record Payroll Expense and Cash Payments to Employees General Journal Page 17 Date Description Post. Ref. Debit Credit 2005 Oct. 14 Salary Expense 6,060.00 Employees' Federal Income Tax Payable 817.50 Employees' State Income Tax Payable 98.10 FICA Tax Payable 463.61 Salaries Payable 4,680.79 Payroll register, page 72, for week ended October 14. 14 Payroll Tax Expense 519.39 FICA Tax Payable 463.59 SUTA Payable 48.60 FUTA Payable 7.20 To record employer's share of FICA tax and employer's state and federal unemployment taxes. 14 Salaries Payable Cash Payroll Bank Account Paid wages for week ended October 14. 4,680.79 4,680.79 Copyright Houghton Mifflin Company. All rights reserved. 9 63 Chapter Review 1. Calculate the amount of payroll tax expense and journalize the entry. 2. Journalize the entry for the deposit of employees federal income taxes withheld and FICA taxes (both employees withheld and employer s matching share) and prepare the deposit coupon. 3. Journalize the entries for the payment of employer s state and federal unemployment taxes. Copyright Houghton Mifflin Company. All rights reserved. 9 64 32

Chapter Review (cont d) 4. Journalize the entry for the deposit of employees state income taxes withheld. 5. Complete Employer s Quarterly Federal Tax Return, Form 941. 6. Prepare W-2 and W-3 forms and Form 940. Copyright Houghton Mifflin Company. All rights reserved. 9 65 Chapter Review (cont d) 7. Calculate the premium for workers compensation insurance, and prepare the entry for payment in advance. 8. Determine the amount of the end-of-the-year adjustments for (a) worker s compensation insurance and (b) accrued salaries and wages, and record the adjustments. Copyright Houghton Mifflin Company. All rights reserved. 9 66 33