102.Subject :- Accounting Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company isconsidering closing its Calgary, Alberta office and transitioning the staff of that location to permanent work from homeemployees. The employees home offices would not be considered a permanent establishment of the employer.Eight staff members currently report to the Alberta office, and the total payroll is $775,000.00.The organization's head office and payroll department are in Mississauga, Ontario. The current Ontario payroll is$4,750,000.00.You have been asked to prepare an analysis showing how closing this permanent establishment in Alberta will impact theemployee's coverage for provincial healthcare and the organization's payroll expense for provincial health taxes.

Payroll refers to the process of calculating, managing, and disbursing payments to employees for the…

Answered: Donovan Ramsey, the Chief Financial…

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter2: Computing Wages And Salaries

Section: Chapter Questions

Problem 1CP

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Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company is considering closing its Calgary, Alberta office and transitioning the staff of that location to permanent work from home employees. The employees home offices would not be considered a permanent establishment of the employer. Eight staff members currently report to the Alberta office, and the total payroll is $775,000.00. The organization’s head office and payroll department are in Mississauga,
Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company is considering closing its Calgary, Alberta office and transitioning the staff of that location to permanent work from home employees. The employees home offices would not be considered a permanent establishment of the employer. Eight staff members currently report to the Alberta office, and the total payroll is $775,000.00. The organization’s head office and payroll department are in Mississauga, Ontario. The current Ontario payroll is $4,750,000.00. You have been asked to prepare an analysis showing how closing this permanent establishment in Alberta will impact the employee’s coverage for provincial healthcare and the organization’s payroll expense for provincial health taxes.
Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company is considering closing its Calgary, Alberta office at the beginning of the next calendar year and transitioning the staff of that location to permanent work from home employees. The employees home offices would not be considered a permanent establishment of the employer. Eight staff members currently report to the Alberta office, and the total payroll is $775,000.00. The organization’s head office and payroll department are in Mississauga, Ontario. The current Ontario payroll is $4,750,000.00. You have been asked to prepare an analysis showing how closing this permanent establishment in Alberta will impact the employee’s coverage for provincial healthcare and the organization’s payroll expense for provincial health taxes. Be specific in your analysis by providing a comparison of current versus projected costs that may result from this change.
Holly Company is a small family-run manufacturer of wooded garden furniture, sheds, and storage containers. The company is located outside Pittsburgh, Pennsylvania, and currently employs 185 workers. Much of the manufacturing work involves casual labor in the lumberyard and sawmill. The work is hard and employees often move on after a few months. Although the company does not issue audited financial statements, its owner has retained your firm to conduct a review of its internal controls. The focus of your review at this time is the payroll process. Holly employees use a time clock in an unsupervised area to record their time on the job. The time-keeping clerk tries to monitor the process, but is often distracted by other duties. Every Friday, the shop foremen collect the time cards for their subordinates, review and approve them, and deliver them to the payroll clerk.The payroll clerk uses a stand-alone PC to record the employee earnings in the employee records and print a hard-copy…
TJ, a salaried employee, was terminated from the company in June of this year. Business had been slow since the beginning of this year, and each of the operating divisions had laid off employees. TJ's dismissal was processed through the Human Resources Department, but the information was not relayed to the corporate payroll office. As had been the policy, checks for the workers at remote sites were mailed (or directly deposited) to the employees. The mailing of TJ's checks continued for the next four weekly paydays. It wasn't until the monthly payroll reports were sent to TJ's supervisor that the error was detected. TJ refused to return the four extra checks. What action should the company take?
Due to the coronavirus pandemic, ShakeHands Company announced a decision to close a factory located in Sampaloc and terminate all 200 employees as a result of the decline in product demand due to the lockdown. The entity shall pay P40,000 per employee upon termination. However, to ensure that the windup of the factory occurs smoothly and all remaining customer orders are completed, the entity needs to retain at least 20% of employees until closure of the factory in six months. As a result, the entity announced that employees who agree to stay until the closing of the factory shall receive P75,000 payment at the end of the six months in addition to receiving their current wage through the period of closure on top of the P40,000. Based on this offer, the entity expected to retain 50 employees until the factory is closed. Compute the amount attributable to termination benefit. Compute the amount attributable to short-term benefit.
Willingham Construction is in the business of building high-priced, custom, single-family homes. The company,headquartered in Anaheim, California, operates throughout the Southern California area. The construction periodfor the average home built by Willingham is six months, although some homes have taken as long as nine months.You have just been hired by Willingham as the assistant controller and one of your first tasks is to evaluate thecompany’s revenue recognition policy. The company presently recognizes revenue upon completion for all of itsprojects and management is now considering whether revenue recognition over time is appropriate.Required:Write a 1- to 2-page memo to Virginia Reynolds, company controller, describing the differences between theeffects of recognizing revenue over time and upon project completion on the income statement and balance sheet.Indicate any criteria specifying when revenue should be recognized. Be sure to include references to GAAP asthey pertain to…
As you learned in the previous chapter, Kipley Company is a small manufacturing firm located in Pittsburgh, Pennsylvania. The company has a workforce of both hourly and salaried employees. In the last chapter, gross wages were computed for each employee. Adjacent to their name, each employee's gross wages are shown in the Payroll Register. The next task is computing the FICA withholding for each employee and the employer's liability. Requirements: Compute the OASDI for each employee. Compute the HI for each employee. On the Employer Register, compute the employer FICA liability.
Stuart Studio, an art studio, prepared a new catalog for the National School of Heavy Equipment, a school run by Gilbert and Donald Shaw. When the artwork was virtually finished, Gilbert Shaw requested Stuart Studio to purchase and supervise the printing of twenty-five thousand catalogs. Shaw told the art studio that payment of the printing costs would be made within ten days after billing and that if the “National School would not pay the full total, he would stand good for the entire bill.” Shaw was chairman of the board of directors of the school, and he owned 100 percent of its voting stock and 49 percent of its nonvoting stock. The school became bankrupt, and Stuart Studio was unable to recover the sum from the school. Stuart Studio then brought an action against Shaw on the basis of his promise to pay the bill. a. What are the arguments that Shaw is not liable on his promise? b. WhataretheargumentsthatShawisliableonhispromise? c. Is Shaw obligated to pay the debt in question?…
Richard has been a highly regarded employee of the Brier Corporation for almost 20 years. Her loyalty to the company is reflected in her dedication to her job as a general accounting clerk, from which she has not taken a vacation in almost 12 years. Because of her dedication and long tenure, she has acquired many related responsibilities, which have allowed Brier Corporation to reduce its workforce through attrition, control salary expenses and become more efficient and competitive. The following describes Richard's responsibilities. Richard receives copies of credit sales orders from the sales department. She accesses the AR subsidiary ledger from her office computer and records the AR from these documents. She then records the sale in the sales journal and posts the transactions to the general ledger accounts. Cash receipts in payment of customer AR come directly to her office. She records the cash receipts in the GL cash and AR accounts and updates the AR subsidiary ledger. She…
Richard has been a highly regarded employee of the Brier Corporation for almost 20 years. Her loyalty to the company is reflected in her dedication to her job as a general accounting clerk, from which she has not taken a vacation in almost 12 years. Because of her dedication and long tenure, she has acquired many related responsibilities, which have allowed Brier Corporation to reduce its workforce through attrition, control salary expenses and become more efficient and competitive. The following describes Richard's responsibilities. Richard receives copies of credit sales orders from the sales department. She accesses the AR subsidiary ledger from her office computer and records the AR from these documents. She then records the sale in the sales journal and posts the transactions to the general ledger accounts. Cash receipts in payment of customer AR come directly to her office. She records the cash receipts in the GL cash and AR accounts and updates the AR subsidiary ledger. She…
Donald Waddell got a job at the Boyce Thompson Institute for Plant Research. Waddell did not have an employment contract for a fixed term, and the institute’s employee manual said that his job was “terminable at will.” Soon after he was hired, the institute implemented a whistleblower policy designed to encourage “the highest standards of financial reporting and lawful and ethical behavior.” Waddell repeatedly told his supervisor, Sophia Darling, that she needed to file certain financial documents more promptly. Darling fired Waddell, telling him that he was disrespectful and insubordinate. Define “at will” employment and wrongful termination. Based on the evidence given, was Waddell wrongfully terminated? Why, or why not.

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