Name four federal acts or types of taxes that relate to payroll, and briefly discuss the main provision of each
What will be an ideal response?
Answer: Suggested answer:
• The Federal Insurance Contributions Act (FICA): requires employers and employees to contribute equally to provide for old age, survivors, disability, and hospital insurance benefits.
• The Federal Unemployment Tax Act (FUTA): requires payroll taxes to be paid by employers to fund federal unemployment insurance programs.
• Federal Internal Revenue Code (federal income taxes): requires the taxation of employee earnings and requires employers to withhold required amounts.
• Federal Fair Labor Standards Act: defines overtime and requires payment of overtime rates under certain circumstances.
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Corporate governance is:
a. a group of elected individuals whose primary responsibility is to act in the owners' best interests by formally monitoring and controlling the firm's top-level managers. b. the set of mechanisms used to manage the relationships among stakeholders and to determine and control the strategic direction and performance of organizations. c. a means by which firms collaborate to achieve a shared objective. d. a structure in which the owner-manager makes all major decisions and monitors all activities, while the staff serves as an extension of the manager's supervisory authority.
All of the following are useful for understanding Profitability Index, except:
A. A profitability index less than 1 equals a negative NPV. B. A profitability index greater than 1 equals a positive NPV. C. The denominator for the profitability index is the cost of the project. D. The initial investment is excluded when calculating the present value of the future cash flows. E. The initial investment is included when calculating the present value of the future cash flows.