Ch_1_LECTURE_NOTES - ACCT 257 LECTURE NOTES Review...

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ACCT 257 LECTURE NOTES Review Questions for Discussion #5, p. 1-22. Chapter 1 introduces you to the complex interrelationship between federal and state laws. Perhaps the “easiest” part of this course is determining how much the employee earned. How much the employee earned is the employee’s primary concern. Whether the payroll was prepared accurately and timely is most important to the employer. First, properly and timely prepared payroll fosters good employer-employee relations. However, the employer has a strong economic interest in accurate preparation of payroll, withholding and payment of FICA taxes, FIT, FUTA, SUTA, and any other applicable tax. At both the federal and state levels, failure to properly manage these tax obligations may result in heavy penalties against the employer, which can lead to severe economic stress on the employer’s finances. It is important to remember that the taxpayer always bears the burden of proving to the government agency that its calculations and records are accurate. Without adequate documentation, the taxpayer is at the mercy of the
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