Bookkeeping Made Simple 44 Flashcards
1
Q
- p 102. PAYROLL RECORDS. What are NET wages?
A
The amount remaining on your paycheck after all deductions have been made.
2
Q
- What are some deductions form an employee’s paycheck?
A
FWT FICA State & Local Taxes Unemployment Disability Union Dues etc.
3
Q
- What is FWT?
A
Federal Wage Tax
4
Q
- What is FICA?
A
FEDERAL INSURANCE CONTRIBUTIONS ACT (social security tax).
5
Q
- What are GROSS WAGES?
A
The employee’s compensation for the period BEFORE the deduction of taxes or any benefits paid for by the EMPLOYEE.
6
Q
- What are MATCHING TAXES?
A
Taxes paid by the EMPLOYER that match those paid by the employee.
7
Q
- What are THE MATCHING TAXES?
A
FICA. If the current withholding rate is 7%, the employer must remit an additional 7% for a total of 14% of employee wages and salaries.
