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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Attracting and retaining the best employees is crucial to operating a business. Employees will join a company based on opportunities for advancement, training, company culture, and salary and benefits provided.

One business that is often listed in Fortune magazine’s “100 Best Companies to Work For” is Recreational Equipment Inc. (REI). REI is committed to inspiring, educating, and outfitting its customers for a lifetime of outdoor adventure. REI offers competitive salaries as well as benefits, including paid sabbaticals, an onsite fitness center, healthcare coverage, telecommuting, and a compressed workweek.

The accounting department at REI is responsible for determining salaries/wages and benefits for employees, calculating payroll deductions for taxes and other expenses, and ensuring that company payrolls are processed in a timely and accurate manner. In this chapter, you learned how companies such as REI complete the payroll records for their employees. Why do you think timely and accurate payroll information is so important to a company such as REI?

To determine

State the reason under which the timely and accurate payroll information is important for Company REI.

Explanation

Payroll:

Payroll refers to the total amount that is required to be paid by the company to its employees during a week, month or other period. It is the financial record of the wages and bonus, net pay, salary and deductions of a company’s employees

  • Since company’s  net income are affected  by the payroll and the payroll taxes, the company has to maintain the timeliness and accuracy on  payroll as to make sure that the given information in the financial  statements are proper...

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