Current liabilities:
Current liabilities are debt obligations that need to be paid within a period of one year or less. Current liabilities are not always paid within one year. If company follows operating cycle then the current liabilities are defined according to the operating cycle of the company rather than the length of the year.
Example: Notes Payable, Accounts Payable, Payroll Liabilities.
Social Security Taxes:
Social Security taxes are usually collected in the form of self–employment tax or payroll tax. These taxes are paid for retirement, survivorship benefits and disability.
To Identify: whether the employer, the employee, or both pays Social Security taxes.
Social Security Taxes:
Social Security taxes are usually collected in the form of self–employment tax or payroll tax. These taxes are paid for retirement, survivorship benefits and disability.
To Compute: the deductions for the Social Security and Medicare (FICA).
Want to see the full answer?
Check out a sample textbook solutionChapter 8 Solutions
Financial Accounting
- What are the tax rates for FICA Social Security and FICA Medicare? What are the maximum taxable earnings amounts for each of these taxes?arrow_forwardIn 2019, what is the top tax rate for individual long-term capital gains and the top tax rate for long-term capital gains of collectible items assuming that the Medicare tax does not apply. 10; 20 20; 28 15; 25 25; 28arrow_forwardWhich of the following taxes are not withheld from an employee? a. FICA Social Security b. Federal Unemployment (FUTA) c. FICA Medicare d. Federal Income Tax e. All of the above are withheldarrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub