During tax year 2021, Monsters, Inc. incurs the following expenses related to their annual employee-only holiday party: 1) Catering from a local restaurant of $20,000 2) Hiring a local band to play at the party for $5,000. How much of these expenses are deductible for Monsters, Inc. as a business expense?
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IRS has made one exception to standard 50% rule for entertainment expense. The party expense incur as a business owner are 100 % deductible provided this event held primarily for the employees and the party do not includes non employee related to the business.
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- Stacy Lee Parker is an employee in the exempt category with regard to uniform. Uniform is provided to her by her employer at a value of $20,000 per annum. What tax is to be paid by Stacy on this benefit for the year of assessment 2021? (Ignore laundering of the uniform). $0 $1188.30 $1666.65 $3565.25A-1Albert Soft Top Corp. pays quarterly wages and incurs federal employment taxes of $3,150 on said wages. The corporation makes the deposit on the required date in the amount of $3,085 (due to an input error in the software). Which calculation illustrates the safe harbor rules that Albert SoftTop Corp. can adhere to (assuming they pay the shortfall by the shortfall date)? Oa. $65 is under the $1,000 limit so they are covered by safe harbor rules. b. $65 is less than 2% of the required deposit, so they are covered by safe harbor rules. e $65 is less than the greater of $100 or 2% of the required deposit, so they are covered by safe harbor rules. Od. the safe harbor rules would only apply if the shortfall was greater than $62 (2% x $3,150). Darla Simpson is self-employed. Her net income for the year is $152,000. Calculate the OASDI portion of her self-employment taxes for the year. O a. $10,863.00 Ob. $17,707.200 Oc. $8,537.40 Od. $18,848.00 If a new employer incurs $100,000 of unsatisfied…
- For the first week of 2022, Coby Co. pays wages of $6,000 and withholds $1,000 for federal income taxes and $400 for state income taxes. The combined FICA and Medicare tax rate is 7.65%. The FUTA rate is 0.8% and the SUTA rate is 5.4% Record the payroll. Record the payroll tax.Kinsella Inc. has a gross payroll of $13,500 for the pay period. The entire payroll is subject to Social Security and Medicare taxes. Kinsella must also withhold $1,750 in income taxes from the employees and pay state unemployment taxes of $60. Assume employees pay 6.2% to Social Security. Required: Hide Prepare the necessary journal entries for Kinsella to record both the gross pay earned by employees and the employer portion of these payroll taxes. If an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar. (Record wages and liabilities)…An employer in The U.S. Virgin Islands employs two individuals, whose taxable earnings to date (prior to the current pay period) are $8,500, and $3,400. During the current pay period, these employees earn $870 and $525, respectively. FUTA tax = $ What is the FUTA tax? The FUTA rate is for year 2022 The FUTA rate for this problem is 0.042%
- K Felipe's Mexican Restaurant incurred salaries expense of $70,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company. 8% of salaries expense). i (Click the icon to view payroll tax rate information.) Read the requirements. More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned per employee; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee. Date Print Done Requirement 1. Journalize…Required information [The following information applies to the questions displayed below.] Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) b. Paylate Corporation mistakenly wrote the check for $100. Clyde received the remaining $900 after year-end. Amount to be included in gross incomeA non-VAT business taxpayer was allowed a deduction of P12,566 for his regular income tax. This arose from services rendered by a VAT professional which was subject to 5% expanded withholding. How much is the cash paid to the professional?
- Ace Computers has 6 employees and operates in Michigan. The Form 940 for the year contains the following information: Part 2: Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank. 3 Total payments to all employees 4 Payments exempt from FUTA tax- Check all that apply: 5 6 Total of payments made to each employee in excess of $7,000 Subtotal (line 4+ line 5 = line 6) What amount should be entered on line 6? O $26,509.50 O $68,509.50 O $192,869.55 O $95,019.00 4a. Fringe benefits 4b. Group-term life insurance 4c. Retirement/Pension 4d. Dependent care 4 5 68,509.50 4e. Other 26,509.50 3 6 192,869.55The November 2019 payroll of Walnut Company is $17,500,000, of which $2,150,000 is exempt from Social Security tax because it represented amounts paid to certain employees in excess of $132,900. The amount paid to employees in excess of $7,000 was $16,980,000. Amounts withheld by Walnut were $3,080,000 for federal income taxes, $871,000 for state income taxes, $475,000 in charitable contributions, and $620,000 for 401-K employee contributions. Walnut’s effective state unemployment tax rate is 1.1% and the effective federal unemployment tax rate 0.6%. Prepare the journal entries Walnut should make to reflect its payroll expense and its payroll taxes expense.The following information appeared in the 2020 BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) of Angelou, a purely compensation income earner: Gross compensation income - Php 400,000.00 13th month pay and other benefits 40,000.00 Amount of taxes withheld (by the employer) 30,000.00 Commission 50,000.00 Pagibig contributions 10,000.00 Philhealth contributions 10,000.00 SSS 10,000.00 Union dues…