11 the discount on a note payable is charged to an account that has a normal credit 4295279
11. The discount on a note payable is charged to an account that has a normal credit balance.
12. The proceeds from discounting a $20,000, 60-day, note payable at 6% is $20,200.
13. Amounts withheld from each employee for Social Security and Medicare varies by state.
14. Form W-4 is a form authorizing employers to withhold a portion of employee earnings for payment of an employee’s federal income taxes.
15. Form W-2 is called the Wage and Tax Statement.
16. If, prior to the last weekly payroll period of the calendar year, the cumulative earnings for an employee are $98,800, earnings subject to social security tax are $100,000, and the tax rate is 6.0%, the employer's social security tax on the $2,000 gross earnings paid on the last day of the year is $120.
17. An employee's take home pay is equal to gross pay less all voluntary deductions.
18. Taxes deducted from an employee's earnings to finance social security and Medicare benefits are called FICA taxes.
19. Generally, all deductions made from an employee's gross pay are required by law.
20. Payroll taxes are based on the employee's net pay.