These provide an employee with financial security upon ceasing employment. A wide variety of these exist, and withholding from gross pay for these plans is a voluntary deduction. The withholding of a portion of an employee's earnings, in compliance with a court order or other legal proceeding. Limited to the lesser of 25% of disposable earnings or the amount of disposable earnings that exceed 30 times the federal minimum wage. A flexible spending account that is designated for a specific purpose. It is a type of cafeteria plan.

These provide an employee with financial security upon ceasing employment. A wide variety of these exist, and withholding from gross pay for these plans is a voluntary deduction. The withholding of a portion of an employee's earnings, in compliance with a court order or other legal proceeding. Limited to the lesser of 25% of disposable earnings or the amount of disposable earnings that exceed 30 times the federal minimum wage. A flexible spending account that is designated for a specific purpose. It is a type of cafeteria plan.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 3A

See similar textbooks

Similar questions

In the case where an employer is delinquent in paying contributions to the state for SUTA: a. experience ratings may be decreased. b. their employees may not be eligible to collect unemployment benefits. c. the employer may be required to contribute monthly rather than quarterly. d. a 100% penalty may be imposed.
The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service. In the Totals row, complete the following: Net FUTA tax. Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employee’s gross earnings is subject to the FUTA tax. (The employer rate is 0.6%.) SUTA tax. Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employee’s earnings. Note : Round your final answers to nearest cent. I need help in calculating the FUTA and the SUTA in step by step solutions. KIPLEY COMPANY, INC.Taxable EarningsPayroll Taxes Earnings OASDI HI FUTA SUTA Totals $fill in the blank 5e50fe031fd1002_1 $467.75 $109.40 $fill in the blank 5e50fe031fd1002_2…
In Oregon, employers who are covered by the state workers' compensation law withhold employee contributions from the wages of covered employees for the workers' benefit fund at the rate of 1.2¢ for each hour or part of an hour that the worker is employed. Every covered employer is also assessed 1.2¢ per hour for each worker employed for each hour or part of an hour. The employer-employee contributions for workers' compensation are collected monthly, quarterly, or annually by the employer's insurance carrier, according to a schedule agreed upon by the employer and the carrier. The insurance carrier remits the contributions to the state's Workers' Compensation Department. Cortez Company, a covered employer in Oregon, turns over the employer-employee workers' compensation contributions to its insurance carrier by the 15th of each month for the preceding month. During the month of July, the number of full-time employee-hours worked by the company's employees was 8,490; the number of…
All of the following fringe benefits may be excluded from an employee's income EXCEPT: Qualified moving expenses for civilian employees. Qualified transportation benefits. Employer-provided education expenses up to $5,250. Health insurance benefits for an employee's spouse.
1. Which of the following items is normally NOT assessable under salaries tax? a. Payment in lieu of notice to an employee who has been dismissed without adequate notice given by the employer. b. Tuition fee paid by an employer for an employee's children, where the employer has entered into the relevant contract with the school directly. c. Reimbursement of medical expenses of an employee by an employer pursuant to the terms provided in the employment contract. d. Lump sum payment to a resigning employee in consideration of his not engaging in the same industry for two years. 2. Henry Ltd is carrying on business in Hong Kong. It acquires funding from various sources in Hong Kong and makes investment in securities listed in overseas markets. Henry Ltd's directors carry out investment analysis in Hong Kong and instruct its overseas agents to execute the orders of purchase and sale in the overseas stock exchange. During the year 2020/21, $10 million profits were derived from…
Under the FLSA, employers are subject to a civil money penalty of up to $11,000 per worker for each violation of the child labor provisions. True False
Which of the following statement is/are true 1.The fringe benefit tax shall be treated as a final income tax on the employee which shall be withheld and paid by the employer on a calendar quarterly basis as provided under the Tax Code. 2. The grossed-up monetary value of the fringe benefit represents the whole amount of income realized by the employee which includes the net amount of money or monetary value of property which has been received plus the amount of fringe benefit tax thereon otherwise due from the employee but paid by the employer for and in behalf of his employee. 3. A taxpayer earning pure compensation income may avail of the 8% optional tax if his total compensation does not meet the VAT threshold. 4. A taxpayer earning pure business income may avail of the 8% optional tax if he his sales or revenue does not meet the VAT Threshold 5.The prescriptive period for NOLCO shall continue to run despite availment by the taxpayer of the OSD. 6. A taxpayer using OSD for the…
Crash Airlines provides the following fringe benefits to its employees. For each benefit, state whether or not an accounting entry would be needed at the end of the year to accrue the cost of the benefit. State your justification for each answer. Each employee earns two days of paid sick leave for each 160 hours he or she works for the company. Each employee is also permitted to fly free of charge on any Crash Airlines flight that is not fully booked with customers. The employee may take as many flights in the course of a year as he or she wishes.
This problem continues the process of preparing the Kipley Company's Employee Payroll Register for the pay period ending January 8th, 20--. In previous chapters, gross wages were computed for each employee and using this data, FICA withholding and employer FICA liability was computed. Requirements: Refer to the SIMPLE Plan Contributions and enter each employee's SIMPLE plan deduction. Determine and record the federal income taxes for each employee. Determine and record the state income taxes for each employee. Determine and record the city income taxes for the city of Pittsburgh. Total each input column. Below lists each employee's assigned Time Card No., Filing Status, and Withholding Allowances. This information is necessary when determining the amount of tax to withhold. TimeCard No. EmployeeName FilingStatus No. ofWithholdingAllowances 11 Fran M. Carson S N/A 12 William A. Wilson S N/A 13 Harry T. Utley MFJ N/A 21 Lawrence R. Fife MFJ N/A 22 Lucy K. Smith S N/A…
Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "0". a. The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The employee must be within 10 years of retirement, and the cost of the seminar is $1,500 per attendee. $fill in the blank 1 b. The company owns a parking garage that is used by customers, employees, and the general public, but primarily by the employees. Only the general public is required to pay for parking. The charge to the general public for Polly's parking for the year would have been $3,600 (a $300 monthly rate). $fill in the blank 2 c. All employees are allowed to use the company's fixed charge long-distance telephone…
An employee's rate of pay is $36 per hour, with time-and-a-half for all hours worked in excess of 40 per week. The employee worked 45 hours during the week. The amount of the employee's gross pay for the week is: Group of answer choices $1,710 $1,800 $1,440 $1,620 Which of the following taxes are employers usually not required to withhold from employees earnings? Group of answer choices Federal income tax Medicare tax Federal unemployment compensation tax State and local income tax A business issued a $5,000, 60-day note to a supplier, which discounted the note at 12%. The proceeds are: Group of answer choices $5,100 $4,400 $4,900 A bond that gives the bondholder a right to exchange the bond for other securities under certain conditions is called a: Group of answer choices convertible bond sinking bond term bond debenture bond If the market rate of interest is less than the coupon rate of interest, the bonds will sell for…
An employee's rate of pay is $36 per hour, with time-and-a-half for all hours worked in excess of 40 per week. The employee worked 45 hours during the week. The amount of the employee's gross pay for the week is: Group of answer choices $1,710 $1,800 $1,440 $1,620 Which of the following taxes are employers usually not required to withhold from employees earnings? Group of answer choices Federal income tax Medicare tax Federal unemployment compensation tax State and local income tax