Question: 1. Which payroll taxes are the employee's responsibility and which are the employer's responsibility?
2. What is an employer's unemployment merit rating? How are these ratings assigned to employers?
3. Why are warranty liabilities usually recognized on the balance sheet as liabilities even when they are uncertain?
4. Suppose that a company has a facility located where disastrous weather conditions often occur. Should it report a probable loss from a future disaster as a liability on its balance sheet? Explain.