1.
Ethical Issue
Case Summary: Many companies hire independent contractors in place of hiring regular employees to cut down costs. The main advantages for the companies are they do not have to pay social security tax or
To Identify: The way an independent contractor is hurt when business abuses this issue.
2.
To Identify: The ethical issue if a business takes an aggressive position in taking the law in slanted way and the party who is being hurt as such.
Want to see the full answer?
Check out a sample textbook solutionChapter 11 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters Plus MyLab Accounting with Pearson eText -- Access Card Package (6th Edition)
- Rasha Ali operates a health food store, and she has been the only employee. Her business is growing, and she is considering hiring some additional staff to help her in the store. Explain to her the various payroll deductions that she will have to account for, including their potential impact on her financial statements, if she hires additional staff.arrow_forwardSuggest some ways that the restaurant chain or other small businesses can offset the increase in payroll and subsequent decrease in profit as a result of the minimum wage hike.arrow_forwardIn an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation. You are the accountant for a company that owns a chain of 14 fast food restaurants in a state which adjusts the minimum wage for inflation. Each restaurant employs 25 workers, each averaging 20 hours per week at the current federal minimum wage, $7.25 per hour. (a) How many hours at minimum wage are paid out each week by the company? hr (b) At the current rate of $7.25 per hour, what is the amount (in $) of the weekly "minimum wage" portion of the restaurant's payroll? $ (c) If the inflation rate this year is 0.7%, calculate the "adjusted" minimum wage rate (in $ per hour) to be paid next year. (Round your answer to two decimal places.) $ per hour (d) How much in "additional wages" will the company have to pay out next year at the adjusted rate (in $)? (Round your answer to the…arrow_forward