Answered: If an employee's income is reported…

If an employee's income is reported based on the total amount received in a year, what basis is the employment income at? Question 1 options: a) Basic b) Accrual c) Cash d) Net

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter8: Payroll Accounting: Employee Earnings And Deductions

Section: Chapter Questions

Problem 3SEB

See similar textbooks

Related questions

Q: mployees performed services in 20Y8, but the wages were not paid until 20Y9. During which year would…

A: Facts: Services performed in 20Y8, but the wages are paid in 20Y9

Q: paid a salary and earned $48,500 in 2021, what is the gross monthly earnings? What is the net…

A: The answer has been mentioned below.

Q: How much in wages did the company actually pay to its employees during Year 2? Show your work.

A: Wage actual paid is the wage expenses adjusted to the outstanding amount at the beginning and ending…

Q: Moyment Condition An employee taking annual Does it meet the award or National Employment Standard's…

A: National Employment Standard Minimum requirements: This is the system of employment standard minimum…

Q: It is added to income received to determine the total income for the year that is recorded under the…

A: Net income: It can be defined as the excess of a company's sales revenue over the expenses incurred…

Q: To match revenues and expenses properly, should the expense for employee vacation pay be recorded in…

Q: If an employee’s income is reported based on the total amount received in a year, what basis is the…

A: Taxation - Employees get taxed on the income they earned after deducting exemptions and deductions.

Q: Question 44 Below are example of (Fill in the blank) • Revenue per Employee • Expense per Employee •…

A: Profit and Loss Statement (P&L), or Statement of Revenue or Activity, is a financial statement…

Q: Which account is debited when the net wages of the employees are paid? Select one: A. Wages B. Bank…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: When salaries and wages expense for the year is computed, why are beginning accrued salaries and…

A: Salaries and wages expense: Salaries and wages expense is an expense which is made to an employee…

Q: Instructions 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form…

A: Payroll: It refers to the total payment that a company is required to pay their employees for…

Q: begin accessing money from their 403b

A: Section 403b is a retirement plan that also called ( tax sheltered annuity plans ) or TSA. This plan…

Q: 1. & 2. Using the above information, complete the below table and Prepare the journal entries to…

A: 1.

Q: An employer gave an educational assisstance to one of its managers amounting P78,000 that is seen to…

A: Answer: Employers are allowed to claim the expenses incurred for education of employees.

Q: Should employee vacation pay be recorded in the period during which the vacation privilege is earned…

A: Vacation is the period provided to the employee by the company. And the associated privileges are…

Q: What is the balance of D's capital account at the end of the second year?

A: The partnership between partners and the distribution of profits and losses is governed by mutual…

Q: Peter earned employment income of £14,850 and received dividends of £4,500 in the tax year 2019/20.…

A: UK Income Tax rates for 2019-20. Tax Rate (Band) Taxable Income Tax Rate Personal…

Q: Which of the following a. payroll, taxes, and insurance b. depreciation, rent and utilities C.…

A: Revenue are the proceeds of goods and services it includes sales , interest earned, service revenue…

Q: Statement 1: For a rank and file employee, excess de minimis benefits shall form part of his taxable…

A: As per Bartleby guidelines, since you have asked 2 independent questions, only the first question…

Q: A. Find the employer's FICA deductions for each of the following employ B. Find the amounts of the…

A: This question is based on the real time interest rate for social security, Medicare and FUTA. Total…

Q: These are employee benefits (other than termination than termination benefits) which are payable…

A: The compensation which is additional in nature and forms a part of the employment contract refers to…

Q: salary to an employee just hired b. Setting up of chart of accounts c. Payment of rent in advance

A: The correct answer is b). Setting up of chart of accounts

Q: Which one of these lists contain ALL items that are used when computing net employment income…

A: According to the Net Taxable Income, these steps needed to be followed: 1) Find Gross Annual Income…

Q: If the employee benefits remain unpaid, how much liability shall Entity A accrue at the end of the…

A: Liability accrue at the end of the year = Profit for the year x 5%

Q: When determining the liability for compensated absences, the amount should be based on 1. an average…

A: A compensated balance is an employee time off pay that means an employee get compensated for the…

Q: ABC Company determined that it has an obligation relating to employees’ rights to receive salaries…

A: In the given question the payment of future absences are probable so the company should be reported…

Q: Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to…

A: Using (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes…

Q: Net pay is: Select one: a. the amount received by the employee b. the amount received by the…

A: Introduction:- Net pay means the amount employees earn after all payroll deductions. Net pay means…

Q: Referring to relevant statutory provisions and common law, discuss whether, for the current income…

Q: Which account is debited when the net wages of the employees are paid? Select one: O A. Wages о В.…

A: The expenses are o be debited and revenues are to be credited in the journal.

Q: (1) An employer must file an information return under all of the following conditions except: a.to…

A: Information return is generally used to report several types of information that needs to be…

Q: Indicate if assessable income has been derived and when it was derived in the following situations.…

A: The employee received = $1500 on 29th June. Assessable income will be derived in the period in which…

Q: How much is the gross income of Mr. Ponce? Mr. Ponce is an employee of XYZ Trading. For the month of…

A: Gross income of Mr. Ponce = Basic salary + overtime and holiday pay + Transportation and cellphone…

Q: According to PAS 19, short-term employee benefits are recognized a. at each year-end b. at each…

A: Short term benefits: Benefits are to be cleared with in a year less than 12 months period called as…

Q: Calculate the EI and CPP for the following employees. Find the employer portion as well.…

A: Considering 2021 tax rates. For employee, EI tax rate is 1.58% for maximum insurable earning of $…

Q: The employment income of an individual is reported on ________ slip, while investment income are…

A: Investment income is money received in interest payments, dividends, capital gains realized with the…

Q: ABC Company determined that it has an obligation relating to employees' rights to re salaries for…

A: Compensated absences are the absences for whih employees are being paid even though employees are on…

Q: An employer is subject to FUTA requirements when its wages paid for the quarter exceed:

A: Answer and Explanation is given below,

Q: Calculate the first year's net income under the accrual basis of accounting.

A: In accrual basis of accounting, the revenue earned and expenses incurred in current period would be…

Q: Compensation income Gross compensation income per month Total SSS premium contribution Total…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: An employee of Company x received the following loans (rate and amount) from their employer on…

A: Interest: It is the amount that is paid by the borrower of loan along with the principal amount.

Q: FICA taxes are a. paid by both the employer and employee b. part of the overhead c. the employment…

A: FICA means Federal Insurance Contributions Act. This is a federal payroll contribution in United…

Q: 1. Darna, employed, derived the Gross Salaries 13th Month pay and other benefi SSS, PhilHealth and…

A: In this question, we will calculate the compensation income that can be reported in annual income…

Q: How much is the compensation expense recognized in the accounts for the year ended December 31,2020

A: ABC Company has offered a share appreciation plan to its COO for motivating him to perform better.…

Q: An employer's obligation for post-retirement benefits that are expected to be provided to an…

A: Post-retirement healthcare benefits often are provided in terms of percentage oftotal coverage. For…

Q: For the current year ended December 31, a company has implemented an employee bonus program based on…

A: Journal entries are the entries to be recorded in the accounting books of the business for all the…

Question

If an employee's income is reported based on the total amount received in a year, what basis is the employment income at?

Question 1 options:

Basic

Accrual

Cash

Net

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The W-4, which shows total annual earnings and deductions for federal and state income taxes, must be completed by the employer and given to the employee by January 31.
_____ 1. 1. Employees earnings record A. Expense account for FICA, FUTA, and SUTA taxes on the employer _____ 2. 2. Pay cards B. Legal procedure by which a portion of the wages of any person is withheld for payment of a debt _____ 3. 3. Disposable earnings C. Debit card-based accounts _____ 4. 4. Regular earnings plus overtime earnings D. Notifies employer of a tax levy _____ 5. 5. Payroll Taxes E. Used to complete Form W-2 _____ 6. 6. Overtime premium earnings F. Provides information needed in preparing the journal entries for payroll _____ 7. 7. Wages Payable G. Debit portion of payroll entry _____ 8. 8. Payroll register H. Earnings remaining after withholding for income taxes and for other amounts required by law _____ 9. 9. Form 668-W I. One-half regular pay rate multiplied by overtime hours _____ 10. 10. Garnishment J. Liability account for wages that have been earned by employees but not yet paid
If an employee’s income is reported based on the total amount received in a year, what basis is the employment income at? Basic Accrual Cash Net
When salaries and wages expense for the year is computed, why are beginning accrued salaries and wages subtracted from, and ending accrued salaries and wages added to, salaries and wages paid during the year?
Determine the employee benefit expense for the current year.
Question 1 – Which one of these lists contain ALL items that are used when computing net employment income (Division B, Subdivision a)? A) employee contributions to a registered pension plan; signing bonus on accepting employment; use of an employer-owned automobile. B) monthly automobile allowance; dental plan paid for by the employer; promotional cost incurred in selling the employer's products. C) subsidized meals in employer's facilities; life insurance paid by the employer; legal fees incurred to collect unpaid salary. D) tips and gratuities; dental insurance paid by the employer; exercise of options to purchase shares of the publicly traded employer.
In recording the payroll, the debit to an expense represents: Group of answer choices deductions gross pay net pay earnings over the calendar year for each employee
Gross pay is: Deductions withheld by an employer Salaries after taxes are deducted Total compensation earned by an employee before any deductions The amount of the paycheck
All the listed benefits paid by an employer are required to be included in an employee's income for a tax year except one. Which one? Question 4 options: a) Tuition fees for training that relates to employer's work b) Medical expenses of an employee c) Forgiveness of employee debt d) Cost of life insurance
The following relates to the different income components: Employment or loss Business income or loss Property income or loss Capital gain or loss Use the above details to answer questions 11 and 12. What are the most possible sources of income an individual taxpayer could have in a year? Question 14 options: a) i and ii only b) i only c) ii and iv only d) All of the above
An employee has total gross wages of $7,000, Federal Unemployment Expense, and State Unemployment Expense. What is the correct journal entry for the employer’s payroll taxes and other expenses?
True or False Points paid in connection with the purchase of a second residence may be deducted in the year paid. Answer: Points paid to refinance a mortgage on a principal residence are fully deductible in the year paid. Answer: If an employee incurs travel expenditures and is fully reimbursed by the employer, neither the reimbursement nor the deduction is reported on the employeeʹs tax return if reporting is pursuant to an accountable plan. Answer: answer all 3