ModuleOneDiscussion - factors o Marital status o Length of...

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There are three types of employee-related liabilities: 1. Payroll Deductions 2. Compensated Absences 3. Bonuses And within each of these categories there are subcategories. These are all liabilities that are owed to the employee by the employer. 1. Payroll Deductions - common types: taxes, insurance premiums, employee savings and union dues Social Security Taxes/Insurances - Because of OASDI and Medicare, taxes are taken from our paychecks by our employers and given to the government. This money is then remitted back to us when in need or at the age of 65. Unemployment Taxes – This is another payroll tax that is paid by the employer. This amount is recorded as an operating expense AND as a current liability. Income Tax Withholding – Employers are required to pay the applicable amount of income tax due. The amount withheld is based off of several
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Unformatted text preview: factors: o Marital status o Length of pay period o Employee’s taxable wages o Claimed dependents 2. Compensated Absences – paid absences from employments that have been earned. All of the following conditions must exist for there to be an earned compensated absence: a. Employer obligation for services already rendered b. Accumulated or vested rights i. Accumulated – earnings that are not used in one period and carried to the next ii. Vested – earnings that are earned and are due even after employment has been terminated c. Payment of compensation is probable. d. Amount can be reasonably estimated. 3. Bonus Agreements – payment in addition to regular salaries and wages. a. Typically depends on company’s yearly profit b. This is a current liability but also a CONDITIONAL expense...
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