PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN: 9781337619783
Author: BIEG
Publisher: CENGAGE L
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Question
Chapter 3, Problem 3QD
To determine
Explain the manner in which the Company Q’s employer FICA taxes would be affected and state the penalty would be faced by the employer for misclassification.
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Instead of being classified as an employee, MatthewMcGinnis was misclassified as an independentcontractor. How will Quality Company’s employerFICA taxes be affected? What penalty will theemployer face for this misclassification?
If an employer does not deduct taxes and contribution from an employee. The employee has the ultimate responsibility to pay the taxes to the Revenue and the Revenue will penalize the employee.
true or false
An independent contractor or self-employed person's employer is not required to deduct taxes, CPP, and EI from their gross salary.
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Chapter 3 Solutions
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Ch. 3 - Which of the following are covered by FICA...Ch. 3 - Prob. 2SSQCh. 3 - Prob. 3SSQCh. 3 - Lori Kinmark works as a jeweler for a local...Ch. 3 - _____1. Johnson Industries, a semiweekly...Ch. 3 - _____1. Employees FICA tax rates A. Severance pay...Ch. 3 - For social security purposes, what conditions must...Ch. 3 - Prob. 2QRCh. 3 - Prob. 3QRCh. 3 - Prob. 4QR
Ch. 3 - What are an employers responsibilities for FICA...Ch. 3 - Prob. 6QRCh. 3 - Prob. 7QRCh. 3 - Prob. 8QRCh. 3 - Prob. 9QRCh. 3 - Prob. 10QRCh. 3 - Prob. 11QRCh. 3 - Prob. 12QRCh. 3 - Prob. 13QRCh. 3 - Prob. 14QRCh. 3 - Prob. 15QRCh. 3 - During the year, employee Sean Matthews earned...Ch. 3 - In order to improve the cash flow of the company,...Ch. 3 - Prob. 3QDCh. 3 - Prob. 4QDCh. 3 - The biweekly taxable wages for the employees of...Ch. 3 - During 2019, Rachael Parkins, president of...Ch. 3 - Prob. 3PACh. 3 - Ken Gorman is a maitre d at Carmel Dinner Club. On...Ch. 3 - In 20-- the annual salaries paid each of the...Ch. 3 - Audrey Martin and Beth James are partners in the...Ch. 3 - Prob. 7PACh. 3 - Ralph Henwood was paid a salary of 64,600 during...Ch. 3 - Empty Fields Company pays its salaried employees...Ch. 3 - The monthly and hourly wage schedule for the...Ch. 3 - Prob. 11PACh. 3 - Prob. 12PACh. 3 - Prob. 13PACh. 3 - During the third calendar quarter of 20--, Bayview...Ch. 3 - Prob. 15PACh. 3 - Prob. 16PACh. 3 - Prob. 17PACh. 3 - Prob. 1PBCh. 3 - During 2019, Matti Conner, president of Maggert...Ch. 3 - Prob. 3PBCh. 3 - Moisa Evans is a maitre d at Red Rock Club. On...Ch. 3 - In 20-- the annual salaries paid each of the...Ch. 3 - Amanda Autry and Carley Wilson are partners in A ...Ch. 3 - Prob. 7PBCh. 3 - George Parker was paid a salary of 74,700 during...Ch. 3 - Prob. 9PBCh. 3 - The monthly and hourly wage schedule for the...Ch. 3 - Prob. 11PBCh. 3 - Prob. 12PBCh. 3 - Prob. 13PBCh. 3 - During the third calendar quarter of 20--, the...Ch. 3 - Prob. 15PBCh. 3 - Prob. 16PBCh. 3 - Prob. 17PBCh. 3 - Your assistant has just completed a rough draft of...Ch. 3 - Prob. 2CP
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Similar questions
- Which is not correct? a) The fringe benefit tax by nature is a final tax. b) The personal expenses of a managerial employee shouldered by the employer are subject to fringe benefit tax. c) Employees do not need to file income tax returns to report the fringe benefit. d) The monetary value of the fringe benefit is multiplied by the fringe benefit tax rate.arrow_forwardWhat might a company do to prevent an employee from taking wages in kind?arrow_forwardWhy is it critical for employers to properly arrange their employees' taxes?arrow_forward
- What can a business do to prevent an employee from receiving salary in kind?arrow_forward. If a fringe benefit involves a deduction from employee pay, which of the following is true? A. Employers may only offer the benefit to certain classes of employees. B. The employee must enroll in direct deposit for their pay. C. The fringe benefit must be subject to income tax. D. The amount of the deduction must be listed on the employee's pay advice. 2. The ________ determines when benefit amounts should be withheld from employee pay. A. employee B. employer C. IRS D. State in which the business is conductedarrow_forwardWhich of the following statements are true regarding supplies used on the job by an employee that the company will not reimburse? A. An employee cannot incur ordinary and necessary business expenses because a job isn't considered a business. B. An employee may not have to report income when the company reimburses her/his expenses incurred for the company. C. An employee can incur ordinary and necessary business expenses but they are not currently deductible even if the employee itemizes. D. Both B and C.arrow_forward
- Employers are responsible for paying FICA taxes, but are not responsible for paying state and federal unemployment taxes. True or falsearrow_forwardSome employers will pay out employees for any unused sick-leave entitlements if they leave the organisation, whereas in other organisations employees forfeit this entitlement when they leave. Explain how these different types of sick-leave entitlements are treated for accounting purposes.arrow_forwardGenerally, all deductions made from an employee's gross pay are required by law. True Falsearrow_forward
- Which of these employees benefits is subject to fringe benefit tax? Fringe benefits to rank and file employees Regular pay of supervisory and managerial employees Fringe benefits to supervisory and managerial employees Regular pay of rank and file employeesarrow_forwardFICA taxes are a mandatory deduction from employee earnings, and are also imposed upon employers as an expense. 11. 12. True Falsearrow_forwardExplain he basic arrangement in a worker’s compensation scheme. What is meant by ‘exclusive remedy” as that term applies to workers compensation? Why was there a need for workers compensation statutes in the United States? What types of monetary benefits are available to injured employees under workers compensation statutes? When did workers compensation statutes originate in the United States? What is a burial benefit? What types of employees are covered by workers compensation statutes? What types of workers are not covered by workers compensation statutes? What is the income benefit under workers compensation statutes? Prior to the enactment of workers compensation statutes, what defenses would employers use in order to avoid paying for employee injuries?arrow_forward
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