Which of the following is a form used to record all the payroll information for all employees?
The payroll register and employee earnings records provide all the payroll information needed to prepare a payroll. The column totals of an employee earnings record provide the debit and credit amounts needed to journalize a payroll.
What information does the payroll register contain?
A payroll register is a record of all pay details for employees during a specific pay period. The payroll register lists information about each employee for things such as gross pay, net pay, and deductions. The register also lists the totals for all employees combined during the period.
Which of the following payroll records are used as the source of information for preparing journal entries for payroll?
payroll register
What is the source document for payment of a payroll?
time card
What four separate payroll taxes do most employers have to pay?
The total of all four portions is 15.3 percent (6.2 percent employee portion of Social Security + 6.2 percent employer portion of Social Security + 1.45 percent employee portion of Medicare + 1.45 percent employer portion of Medicare = 15.3 percent).
What is an example of a fringe benefit provided by a company to its employees?
Fringe benefits are forms of compensation you provide to employees outside of a stated wage or salary. Common examples of fringe benefits include medical and dental insurance, use of a company car, housing allowance, educational assistance, vacation pay, sick pay, meals and employee discounts.
What are fringes in payroll?
Fringe benefits are a form of pay, often from employers to employees, and considered compensation for services beyond the employee’s normal rate of pay. They can be made in the form of property, services, cash, or cash equivalents.
Are fringe benefits included in gross income?
Fringe benefits are generally included in an employee’s gross income (there are some exceptions). The benefits are subject to income tax withholding and employment taxes. See Publication 15-B, Employers’ Tax Guide to Fringe Benefits, for more information.
Which of the following is a fringe benefit excluded from income?
Other fringe benefits that are not considered taxable to employees include health insurance (up to a maximum dollar amount), dependent care, group term-life insurance, qualified benefits plans such as profit sharing or stock bonus plans, commuting or transportation benefits, employee discounts, and working condition …
Who pays fringe benefit tax?
FBT is paid by employers on certain benefits they provide to their employees or their employees’ family or other associates. FBT applies even if the benefit is provided by a third party under an arrangement with the employer. FBT is separate to income tax and is calculated on the taxable value of the fringe benefit.
What is considered a taxable fringe benefit?
Bonuses, company-provided vehicles, and group term life insurance (with coverage that exceeds $50,000) are considered taxable fringe benefits. Nontaxable fringe benefits can include adoption assistance, on-premises meals and athletic facilities, disability insurance, health insurance, and educational assistance.
Is cell phone reimbursement a fringe benefit?
ANSWER: Business use of an employer-provided cell phone may be treated as a nontaxable working condition fringe benefit so long as the phone is provided “primarily for noncompensatory business purposes.” Examples of noncompensatory purposes include the need to be accessible to the employer at any time for work-related …
What is a reasonable cell phone reimbursement?
The answer: You’ll decide on your own reimbursement levels, but we suggest $50 for low business use and $75 for high business use. The average monthly cell phone bill last year was $99, according to the Bureau of Labor Statistics Consumer Expenditure Survey.
Can I refuse to use my personal phone for work?
If you need a cell phone for work, your employer can insist that you use your own. If your employer swings the other way and requires you use your personal phone, the company may reimburse you.
Is health insurance a taxable fringe benefit?
Any fringe benefit provided to an employee is taxable income for that person unless the tax law specifically excludes it from taxation. Tax-free employee fringe benefits include: health insurance (up to certain dollar amounts) accident insurance.
Are health insurance premiums paid by employer taxable income?
Employer-paid premiums for health insurance are exempt from federal income and payroll taxes. Additionally, the portion of premiums employees pay is typically excluded from taxable income.
What employee benefits are tax deductible?
Common examples of this type of benefit are health insurance, qualified retirement plan contributions, and group-term life insurance up to $50,000. Even if the benefit is not taxable to the employee, you can still deduct the cost of providing the benefits, provided that you meet all the requirements.
Is employee health insurance tax deductible?
Generally speaking, any expenses an employer incurs related to health insurance (for employees or for dependents) are 100% tax-deductible as ordinary business expenses, on both state and federal income taxes. This increases the employee’s take-home pay and lowers the amount of the employee’s taxable income.
Can I deduct my health insurance premiums 2020?
Are Medical Premiums Tax Deductible? For the 2020 and 2021 tax year, you’re allowed to deduct any qualified unreimbursed healthcare expenses you paid for yourself, your spouse, or your dependents—but only if they exceed 7.5% of your adjusted gross income (AGI).
What qualifies as a deductible medical expense?
You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income. Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.
Can you deduct medical expenses if you take the standard deduction?
If you take the standard deduction, you won’t be able to take a medical expense deduction. What’s more, you can only deduct the portion of your qualified medical expenses that exceeds the AGI threshold for the tax year.
What can I deduct in addition to standard deduction?
Itemized deductions include many of the most popular tax deductions such as home mortgage interest, medical expenses, charitable contributions, and state and local taxes. You should itemize if your total itemized deductions are worth more than the standard deduction.
What is the difference between standard deduction and itemized deduction?
The difference between the standard deduction and itemized deduction comes down to simple math. The standard deduction lowers your income by one fixed amount. On the other hand, itemized deductions are made up of a list of eligible expenses. You can claim whichever lowers your tax bill the most.