PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN: 9781337619783
Author: BIEG
Publisher: CENGAGE L
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Question
Chapter 4, Problem 1SSQ
To determine
Identify the employee compensation items that are not subject to the withholdings.
Expert Solution & Answer
Explanation of Solution
Income tax withholding: Under federal law, the employer is required to withhold a certain amount from the total earnings of the employer. The amounts that are withheld by the employer are applied to the payment of the employee’s federal income tax.
Following are the items of employee compensation that are not subject to the withholdings:
1. Meals that are provided to the employees by the employer for delaying the work and making the employer work in the premises are not subject to withholdings as working compensation fringes and they fall under the category of non-taxable
3. Usage of on-premises athletic facilities (work- out room) to the employees are not subject to the withholdings as they are a part of non-taxable fringe benefits.
4.When advance is provided to the salesperson (employees) for the overnight sales call that are made out of town are not subject to withholding. It is considered as a business expenses that is provided to an employee in advance that has a likelihood of being probable.
7. Meals provided by the employer in local restaurant are not subject to any withholdings as there is no additional cost added to the employees for the service provided by the employer and they fall under the category of non-taxable fringe benefits.
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Completing the Payroll Register
The Employee Payroll Register presents all the computations previously performed as it applies to this payroll period.
Complete the following steps (if a field should be blank, leave it blank):
Record the amount to be withheld for group insurance.
Record the amount to be withheld for health insurance.
Each worker is to be paid by check. Assign check numbers provided to the correct employee.
Compute the net pay for each employee.
Total the input columns.
KIPLEY COMPANY, INC.Payroll RegisterFor Period Ending January 8, 20--
EARNINGS
DEDUCTIONS
NET PAY
Name
Gross
OASDI
HI
FIT
SIT
SUTA
CIT
SIMPLE
Grp. Ins.
Health Ins.
Ck. No.
Amount
Carson, F.
$700.00
$43.40
$10.15
$48.00
$21.49
$0.42
$21.00
$20.00
Wilson, W.
897.04
55.62
13.01
68.00
27.54
0.54
26.91
50.00
Utley, H.
678.75
42.08
9.84
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20.84
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40.00
Fife, L.
877.10
54.38
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Smith, L.
790.00
48.98
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59.00…
Which of the following is true about
employee pay methods? (You may select
more than one answer. Single click the
box with the question mark to produce a
check mark for a correct answer and
double click the box with the question
mark to empty the box for a wrong
answer. Any boxes left with a question
mark will be automatically graded as
incorrect.)
O Employees must request the
transfer of payroll earnings to their
paycard each period.
Employees must be able to
access the full amount of their net
pay on the pay date.
O Employees do not need to own a
bank account to receive their pay via
direct deposit.
O Employers must keep a record of
all pay disbursements.
Question:
wages and payroll
the following system is used in a business regarding payment of the weekly wages to its 20 employees
" the pay clerk prepares 20 correctly Labelled, sealed pay envelope and placed them next to the time book every Friday morning. When the employees come in the morning to sign the time book they pick their pay envelopes.'
reqiured: please answer this question by:
a) with reference to the above, identify one weakness of the system.
Chapter 4 Solutions
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Ch. 4 - Prob. 1SSQCh. 4 - Prob. 2SSQCh. 4 - Prob. 3SSQCh. 4 - Prob. 4SSQCh. 4 - Prob. 5SSQCh. 4 - Prob. 6SSQCh. 4 - Prob. 1MQCh. 4 - Prob. 1QRCh. 4 - Prob. 2QRCh. 4 - Prob. 3QR
Ch. 4 - What is the maximum contribution that an employer...Ch. 4 - Prob. 5QRCh. 4 - Prob. 6QRCh. 4 - Prob. 7QRCh. 4 - Prob. 8QRCh. 4 - Prob. 9QRCh. 4 - Prob. 10QRCh. 4 - Prob. 11QRCh. 4 - Prob. 12QRCh. 4 - Prob. 13QRCh. 4 - Trowbridge Company has just completed the...Ch. 4 - Prob. 15QRCh. 4 - Prob. 16QRCh. 4 - Prob. 17QRCh. 4 - Prob. 18QRCh. 4 - Prob. 19QRCh. 4 - Prob. 20QRCh. 4 - Prob. 1QDCh. 4 - Prob. 2QDCh. 4 - Prob. 3QDCh. 4 - Prob. 4QDCh. 4 - Prob. 5QDCh. 4 - Justin Holmes, an ex-employee, is entitled to a...Ch. 4 - Prob. 1PACh. 4 - Prob. 2PACh. 4 - Prob. 3PACh. 4 - Prob. 4PACh. 4 - Prob. 5PACh. 4 - Prob. 6PACh. 4 - Prob. 7PACh. 4 - Prob. 8PACh. 4 - Prob. 9PACh. 4 - Mattola Company is giving each of its employees a...Ch. 4 - Prob. 11PACh. 4 - Prob. 12PACh. 4 - Prob. 13PACh. 4 - Prob. 1PBCh. 4 - Prob. 2PBCh. 4 - Prob. 3PBCh. 4 - Prob. 4PBCh. 4 - Prob. 5PBCh. 4 - Prob. 6PBCh. 4 - Prob. 7PBCh. 4 - Prob. 8PBCh. 4 - Prob. 9PBCh. 4 - Harrington Company is giving each of its employees...Ch. 4 - Prob. 11PBCh. 4 - During the fourth quarter of 2019, there were...Ch. 4 - Prob. 13PBCh. 4 - Prob. 1CPCh. 4 - Prob. 2CP
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