Previous weeks discussed Current Liabilities and Payroll Accounting; please post comments on your experience with any elements of payroll. Respond to the post of at least one classmate.
Some ideas to consider:
1. Why should you receive a higher hourly rate if you receive a 1099, than if you were issued a W-2 Form (this relates to the self employment tax of 14.3% based on 7.65% as the withholding from the employee and the match paid by the employer as payroll taxes).
2. W-2's must be mailed to employees by January 31 each year. The employer must submit W-2 information to the government no later than February 28 each year. Have you received your W-2 already?
3. If you work for a company and have the ability to sign checks, you may have a liability for unpaid payroll taxes. How comfortable would you be with this responsibility?
4. At some point, you've probably have filled out a W-4, where you declare the amount of exemptions you wish to claim related to your Federal Tax withholding obligation. What are the financial consequences you need to think about as you complete the W-4?
5. What are some of the benefits do you receive from your employer? Based on what you have learned in this course, describe or give an example of the journal entry/entries that your employer would prepare when recording your benefits.