Chickadee Company uses Rodgers Payroll Express to process all payroll for the company. The processing includes preparing paychecks and direct deposits, filing all payroll tax returns, and remitting the payroll tax deposits. Rodgers Payroll Express is experiencing cash flow problems and did not deposit the payroll tax deposits on behalf of Chickadee. Who is assessed the harsh penalties for failure to make timely deposits of withheld taxes?

Chickadee Company uses Rodgers Payroll Express to process all payroll for the company. The processing includes preparing paychecks and direct deposits, filing all payroll tax returns, and remitting the payroll tax deposits. Rodgers Payroll Express is experiencing cash flow problems and did not deposit the payroll tax deposits on behalf of Chickadee. Who is assessed the harsh penalties for failure to make timely deposits of withheld taxes?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter1: An Introduction To Taxation And Understanding The Federal Tax Law

Section: Chapter Questions

Problem 35DQ

See similar textbooks

Similar questions

The Internal Revenue Service levies a small service fee for employers who utilizes the Electronic Federal Tax Payment System. true or false
Ennis Locatelli is a new payroll accountant at Avata Electronics. In his review of previous manual payroll records, he noted several errors that required the issuance of additional checks to employees for unpaid payroll amounts. What are Ennis’s options to avoid similar problems in the future?
Over the past two years, Kermit Stone, The comptroller of Hilton Company, Has been concerned that the company has been paying a large amount of money for state unemployment taxes. On reviewing the "unemployment file" with the head accountant, Deborah Martha, he learns that the companies tax rate is near the top of the range of the states experience-rating system. After calling the local unemployment office, stone realizes that the turnover of employees at Hilton company has had an adverse effect on the companies tax rates. In addition, after consulting with Murtha, he discovers that the eligibility reports that come from the state unemployment office or just signed and sent back to the state without any review. The eligibility reports or notices that an ex employee has filed a claim for unemployment benefits. By signing these reports "blindly", The company, in effect, tells the state that the employee is eligible for the benefits. Any benefits paid or charged by the state against…
In a payroll journal entry, a credit to Federal Withholding Tax Payable indicates a.Federal taxes are due to be withheld from the employee b.Federal taxes have been paid to the governing agency c.Federal taxes have been withheld from the employee and are a liability until paid to the governing agency d.None of these choices are correct.
What is NOT an example of internal control procedures that help prevent payroll fraud? a.Outsource Payroll Administration b.Require mandatory vacations c.Make sure only one person handles payroll functions d.Conduct periodic unannounced audits
Your client is preparing financial statements to show the bank. You know that he has incurred a refrigeration repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not yet paid the 1,255 bill. Your client is on the accrual basis of accounting. He does not want the refrigeration repair expense on the books as of the end of the month because he wants his profits to look good for the bank. Is your client behaving ethically by suggesting that the refrigeration repair expense not be booked until the 1,255 is paid? Are you behaving ethically if you agree to the clients request? What principle is involved here?
When a credit is made to federal income taxes withholding payable account related to taxes withheld from an employee, the corresponding debit is made to a. Wages Expense b. Taxes Expense c. Taxes Payable d. Cash
Red Mountain, Inc. has the following information from its payroll records: Salaries and wages earned by employees $ 180,000 Less: income taxes withheld from employees 27,000 Less: FICA taxes withheld from employees 9,000 Net pay to employees $ 144,000 The employer amount of FICA taxes that Red Mountain is required to pay is equal to the amount that it withholds from its employees. Assume no other payroll taxes are incurred at this time. What is Red Mountain's total expense with regards to this payroll?
The state of Kansas passed legislation that allowed employers to select their employee's payment methods. The legislation was known as the “paperless payroll law” and many employers opted to give their employees pay cards instead of cash, checks, or direct deposit. This practice spread to many other states including New York. In 2017, the law was revoked because it made employers into de facto financial institutions. What are the issues with this practice? What are the benefits?
A large retail enterprise has established a policy that requires the paymaster to deliver all unclaimed payroll checks to the internal audit department at the end of each payroll distribution day. This policy was most likely adopted toa. Ensure that employees who were absent on a payroll distribution day are not paid for that day.b. Prevent the paymaster from cashing checks that are unclaimed for several weeks.c. Prevent a bona fide employee’s check from being claimed by another employee.d. Detect any fictitious employee who may have been placed on the payroll
Chanon, Inc. is a supplier of office equipments to the government. The company has recently delivered P2,000,000 worth of equipments but remains unpaid as of date. Yesterday, the company received a Final Assessment Notice from the Bureau of Internal Revenue for deficiency taxes and penalties amounting to P2,000,000. Can Chanon opt not to pay BIR? a. Yes, as the receivable and the tax liability can be set-off as the other party is also the government. b. No, as Chanon can still avail of its judicial remedies. c. Yes, as the claim against the government arose first. d. No, as Chanon's claim is a debt and the government's claim is taxes. These cannot be set-off.
The Tax Administration has the right to refuse to provide evidence of the source (s) of income used for a best judgement assessment if requested by the Tax Appeal authority. Select one: True or fales If the annual turnover for a person is less than a certain limit (the threshold) the person is not required to register for VAT. Select one: True False VAT is a charge borne only by businesses. Select one: True False When the Input VAT is lower than the Output VAT you are entitled to a refund (VAT Refund)/ VAT credit? Select one: True False A tax is any deduction taken from a person’s salary by the government: true or False