Question

In: Accounting

What are the common deductions taken from employee and employer payroll? Describe two of these deductions...

What are the common deductions taken from employee and employer payroll? Describe two of these deductions in detail. What voluntary deductions are/or have been taken from your paycheck?

Solutions

Expert Solution

There are many deductions which are taken from payroll.Out of which some are mandatory & some are voluntary.

Mandatory deductions are those which are required by Federal law or state law to deduct & remit it to government authority.

Federal Income tax Withheld This deduction is required by Internal Revenue Service.Amount of tax deduction is depend on employee income & exemptions that an employee claim..Amount which is subject to tax & amount of taxes withheld is reported to payee & government authority.

Garnishment This deduction is made when your employee has unpaid debt.To withheld this payment order or notice from court is required.Wage garnish continue till entire debt is paid off.

Voluntary deduction are those which are not required by law.These deductions are made only when it is authorised by employee.

  • Health & life insurance Premium
  • Retirement benefit plan

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

What are the common deductions taken from employee and employer payroll? Describe two of these deductions...
What are the common deductions taken from employee and employer payroll? Describe two of these deductions in detail. What voluntary deductions are/or have been taken from your paycheck?
Prepare journal entries to record: (1) accrued payroll, including employee deductions, for July
Question: The following monthly data are taken from Ramirez Company at July 31: sales salaries, $200,000; officesalaries, $160,000; federal income taxes withheld, $90,000; state income taxes withheld, $20,000; SocialSecurity taxes withheld, $22,320; Medicare taxes withheld, $5,220; medical insurance premiums, $7,000;life insurance premiums, $4,000; union dues deducted, $1,000; and salaries subject to unemploymenttaxes, $50,000. The employee pays 40% of medical and life insurance premiums.Prepare journal entries to record: (1) accrued payroll, including employee deductions, for July;(2) cash payment of the net...
1. Why are deductions from employees’ earnings classified as liabilities for the employer? 2. What are...
1. Why are deductions from employees’ earnings classified as liabilities for the employer? 2. What are the principal reasons for using a special payroll checking account?
What are the payroll entries for the employee. (Explain) What are the payroll entries for the...
What are the payroll entries for the employee. (Explain) What are the payroll entries for the employer? (Explain)
It is August 2020. You are calculating the monthly paycheck, including employee withholding, and employer payroll...
It is August 2020. You are calculating the monthly paycheck, including employee withholding, and employer payroll related expenses for Bonnie Bigwig. Her pay through July is $110,000. Her August gross pay $20,000. Her Federal income tax withholding is at the 25% rate, her state withholding is at the 5% rate. (Ignore local income tax.) Her health insurance (all paid by the company) is $1,500 / month. She contributes $1,000 / month to the United Way. Give the journal entry to...
It is August 2020. You are calculating the monthly paycheck, including employee withholding, and employer payroll...
It is August 2020. You are calculating the monthly paycheck, including employee withholding, and employer payroll related expenses for Bonnie Bigwig. Her pay through July is $110,000. Her August gross pay $20,000. Her Federal income tax withholding is at the 25% rate, her state withholding is at the 5% rate. (Ignore local income tax.) Her health insurance (all paid by the company) is $1,500 / month. She contributes $1,000 / month to the United Way. Give the journal entry to...
Which payroll taxes are both the employer and employee responsible for paying generally an equal amount?...
Which payroll taxes are both the employer and employee responsible for paying generally an equal amount? Please explain.
There are two classes of deductions. Deductions for AGI and Deductions from AGI. Discuss the differences...
There are two classes of deductions. Deductions for AGI and Deductions from AGI. Discuss the differences between these two classifications and the types of deductions in each classification. Explain which deductions are more advantageous for your tax return.
Payroll. Your employer is considering adding a group term life insurance plan to the employee benefit...
Payroll. Your employer is considering adding a group term life insurance plan to the employee benefit package. The premium cost would be fully paid by the organization. Explain how this will impact: 1. the employees' net pay, 2. thew employer's payroll costs
1) What is an employee at will, why is it such an advantage to an employer?...
1) What is an employee at will, why is it such an advantage to an employer? 2) What is the difference between an independent contractor and an employee. What advantages are there for each? 3) Does discrimination in the workplace still exist? Are our laws effective in removing it?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT