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?
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.
. 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 conducted
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
- Employers are responsible for paying FICA taxes, but are not responsible for paying state and federal unemployment taxes. True or falsearrow_forwardWhat two alternative tests are applied to a business in order to judge whether it is an employer and therefore subject to the FUTA tax?arrow_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_forward
- Some employers will pay out employees for any unused sick leave entitlements if they leave the organisation, whereas in other organisatons employees forfeit this entitlement when they leave. Needs answer to the following; Explain how these different types of sick leave entitlements are treated for accounting purposes.arrow_forwardWhich of the following fringe benefits provided by an employer would result in taxable income to an employee? Group of answer choices A cell phone used by a salesperson to talk to clients while traveling. Reimbursements paid by the employer for qualified business travel expenses Occasional personal use of an office copy machine Use of a company car for daily commutingarrow_forwardSince they are NOT an employee, it is solely the responsibility of the independent contractor to report his/her annual compensation to the federal government. True or False?arrow_forward
- 1-Which act sets the minimum wage, and what is the current wage rate? Under the FLSA , what information concerning employees ' wages earned must be maintained by the employer? 3-Who pays the social security taxes that are levied by the Federal Insurance Contributions Act ? How are the funds used which are provided by FUTA and SUTA? What types of unfair employment practices are prohibited by the Civil Rights Act of 1964 as amended? What is the purpose of the Age Discrimination in Employment Act ( ADEA ) ? Are there any exceptions to the protection afforded older workers by the Age Discrimination in Employment Act ? Who is covered by the Walsh - Healey Public Contracts Act ? Under the Family and Medical Leave Act , what is the maximum number of weeks of unpaid leave that a covered employer is required to offer an employee whose spouse is seriously ill ? What is the primary purpose of the Employee Retirement Income Security Act ( ERISA )? 11- Explain…arrow_forwardDon't use Ai and chatgpt. Answer in all options with explanation.arrow_forwardThe Social Security payroll tax is split equally between the employee and the employer. Would it make any difference if the entire tax was imposed on employees? Would employees be helped if all the tax was imposed on employers?arrow_forward
- Which of the following does not qualify as a "for the convenience of the employer" nontaxable fringe benefit? Multiple Choice A meal at a holiday party An overtime meal provided to an employee while working late A meal provided by a hospital to residents during their shifti The fair market value of the rent of an apartment manager living on the premisesarrow_forward6. Which of the following is subject to income tax? A. De minimis benefits B. Income tax paid by the employer in behalf of the employee C. Fringe benefit required by the nature of or necessary to trade business or profession of the employer D. Those granted for the convenience of the employerarrow_forward1. Which of the following items is normally NOT assessable under salaries tax? a. Payment in lieu of notice to an employee who has been dismissed without adequate notice given by the employer. b. Tuition fee paid by an employer for an employee's children, where the employer has entered into the relevant contract with the school directly. c. Reimbursement of medical expenses of an employee by an employer pursuant to the terms provided in the employment contract. d. Lump sum payment to a resigning employee in consideration of his not engaging in the same industry for two years. 2. Henry Ltd is carrying on business in Hong Kong. It acquires funding from various sources in Hong Kong and makes investment in securities listed in overseas markets. Henry Ltd's directors carry out investment analysis in Hong Kong and instruct its overseas agents to execute the orders of purchase and sale in the overseas stock exchange. During the year 2020/21, $10 million profits were derived from…arrow_forward
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