Answered: One of the staff members asks you to…

One of the staff members asks you to explain the difference between the terms gross and net on the paycheck. How do you respond?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter9: Payroll, Estimated Payments, And Retirement Plans

Section: Chapter Questions

Problem 14MCQ

See similar textbooks

Related questions

Q: Which of the following are not expenses? * O Cost of goods sold Wages earned but unpaid O Dividends…

A: Expenditure is the transfer of capital or some other source of wealth, to another individual or…

Q: employee's take-home pay is equal to gross pay less all voluntary deductions. True False

A: As per US federal tax law the employee will get paid of salary after deducting the some taxes that…

Q: The revenue recognition principle states that all types of incomes should be recorded or recognized…

A: We have the following question: The revenue recognition principle states that all types of incomes…

Q: Question 5 Which of the following would be deducted in determining an employee's net pay? O FUTA…

A: Some taxes are deducted by employer from employee salary and paid to the government and net salary…

Q: How to calculate salaries payable

A: Salaries payable can be defined as the liability account containing the amount of salaries, if any,…

Q: a) Write a function that transforms the old annual salary, S, into the new annual salary, N. b) Does…

A: Suppose the old salary be x dollars Since each employee is given a 6% cost of living and $2000…

Q: I have a couple of questions. Please answer clearly, no typos and thoroughly. Thanks!1) What are…

A: Step1: Accrual adjustment. We have,Accrual adjustment is made when expenses should be reported for…

Q: Which account is debited when the net wages of the employees are paid? Select one: A. Wages B. Bank…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Consider the economic debates about either 1) the effects of immigration on wages in receiving areas…

A: Economic theory predicts impacts on local worker employment and wages, United States deal with other…

Q: Which of the following items will not be shown in the balance sheet of ahotel

A: Balance sheet is an orderly arrangement of assets and liabilities of a business entity on a…

Q: Which of the following a. payroll, taxes, and insurance b. depreciation, rent and utilities C.…

A: Revenue are the proceeds of goods and services it includes sales , interest earned, service revenue…

Q: The net income or net loss reported on the income statement must be the same as the net income or…

A: A Worksheet is a multi-column spreadsheet that contains the ending balances of all general ledger…

Q: calculate samsam salary after deductions

A: Salary after deduction can be calculated by subtracting the total deductions claimed during the…

Q: True or false. Reporting the deduction for employers reimbursed travel expenses on schedule C is the…

A: The non accountable plan is the reimbursement plan that does not meet all the criteria set for…

Q: Which of the following is not deductible from gross income? Salaries and wages of employees…

A: There are expenses which are deductible from gross income to arrive at net income which is taxable.…

Q: Should options given as part of compensationpackages be reported on the income statement asan…

A: Stock options are recognized as a compensation expense in the financial statements of a company.…

Q: Net Pay is: Group of answer choices credited to Salaries Payable. Credited to Salaries Expense.…

A: Correct answer in 'Credited to Salaries Payable.'

Q: It is a person's earnings before deduction. Salary Wage Gross pay Net pay

A: Employment is one of the major economic activities. Employees get some remuneration from their…

Q: salary to an employee just hired b. Setting up of chart of accounts c. Payment of rent in advance

A: The correct answer is b). Setting up of chart of accounts

Q: Which of the following defines outstanding salary account? [A] natural personal account [B]…

A: Outstanding salary refers to the amount which a business has to pay to persons, employees for…

Q: What is salaries payable an equity, revenue, expense account, liability or expense?

A: Balance Sheet - Balance Sheet is combination of assets, liabilities and equity. It is prepared at…

Q: Record the emplovee salary expense, withholdings, and salaries pavable.

A: Particulars…

Q: Which function should distribute paychecks?a. personnelb. timekeepingc. paymasterd. payroll

Q: compute the total deductible expenses for purposes of determining che regular income tax due from X,…

A: Tax:- A tax is the compulsory payment which is imposed by the government on income and capital…

Q: Which of the following describes the transaction resulting in a journal entry with a debit to…

A: Salaries payable are debited when previously incurred salaries expenses are being paid now.…

Q: Which if the following is not an inclusion in gross income?

A: Gross income is an income from all sources including returns , discounts and…

Q: Which account is debited when the net wages of the employees are paid? Select one: O A. Wages о В.…

A: The expenses are o be debited and revenues are to be credited in the journal.

Q: GROSS PAY is pay before any deductions are taken. Your answer: O True O False

A: An individual works for an employer to generate salary revenue and to advance in his career. The…

Q: IDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTION TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL…

A: Material misstatements are errors or frauds that are being made in the financial statements to show…

Q: One of the objections of granting wage increases on a percentage basis is that the lowest paid…

A: The answer has been given in the next sheet.

Q: What is the difference between: Salaries and wages expense on the income statement And Salaries and…

A: The income statement and balance sheet are the financial statements of the business.

Q: In the following liabilities, the payee is known, however, the amount may have to be estimated.…

A: provision should be created for all the certain liabilities

Q: The employment income of an individual is reported on ________ slip, while investment income are…

A: Investment income is money received in interest payments, dividends, capital gains realized with the…

Q: Explain why you would prefer to have an expense labeled as an adjustment to income instead of being…

A: There are two ways in which you can reduce the tax liability. The first one is by reducing the…

Q: ages for cost of inve gal business mbling activities

A: Gross Income - It is the total income from all sources i.e. business or services, returns,…

Q: Accrued salaries are Salaries that have been neither earned by employees nor paid. Salaries that…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 1. How much is the additional allowable training expenses, if any? 2. How much is the taxable net…

A: Taxable income of the company is the income which the company has earned during the year from the…

Q: What is the difference between Wages Payable and Wages Expense? What statement do they appear on?…

Q: a. O'Brien's disposable earnings b. The amount of her pay subject to the garnishment

Q: True or false. Reporting the deduction for employers reimbursed travel expenses on schedule C is the…

A: Reimbursement refers to money paid to an employee or customer or another party, as repayment for a…

Q: Questions: . How much is Mr. Quiton's gross earnings? . How much is his total deductions? - After…

A: solution given basic salary 15532 Allowances 1000 Deductions Social…

Q: Which is wrong? The term creditable input VAT means input VAT deductible from output VAT.…

A: Input tax is utilised against payment of output tax liability. Input tax will be credited for the…

Question

One of the staff members asks you to explain the difference between the terms gross and net on the paycheck. How do you respond?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Which account is debited when the net wages of the employees are paid? Select one: A. Wages B. Bank C. Net wages D. Creditors for wages
Who among the following uses accounting information to know the possible wage increments? a. Owners b. Customers c. Employees d. Bankers
What is the difference between Wages Payable and Wages Expense? What statement do they appear on? What account are they on? Do they carry a DR or CR balance? Please provide the same for Salary Expense
What is the difference between: Salaries and wages expense on the income statement And Salaries and wages payable in the balance sheet? Thank you!
Which of the following defines outstanding salary account? [A] natural personal account [B] artificial personal account [C] representative personal account [D] real account
Net Pay is: Group of answer choices credited to Salaries Payable. Credited to Salaries Expense. Debited to Salaries Expense. Debited to Salaries Payable.
For financial institutions, wages and staff benefits are considered part of which type of the following: a. Interest expenses. b. Non-interest income. c. Non-interest expenses. d. Net Interest income.
Who among the following uses accounting information to know the possible wage increments? a. Bankers Ob. Customers O c. Employees O d. Owners
Which of the following is nonbusiness transaction? a. Payment of advance salary to an employee just hired b. Setting up of chart of accounts c. Payment of rent in advance d. Receipt of electricity bill
Which of the following describe the Salaries payable account? (Check all that apply.)Which of the following describe the Salaries payable account? (Check all that apply.) Multiple select question. It is reported on the income statement. It is a liability account. It reports amounts owed to employees. It is increased with a debit. It is reported on the balance sheet. It is increased with a credit.
What are revenues that have been earned but not recorded in the accounts called? Group of answer choices cost revenues matching revenues accrued revenues cash revenues
How to calculate salaries payable