Regarding gross and net pay, which of the following statements is correct?
A) Gross pay minus all deductions such as income tax withheld equals net pay.
B) Net pay represents the total salaries and wages expense to the employer.
C) For most businesses, gross pay equals net pay.
D) Employers are required to deposit net pay into the employee's bank account.
A
You might also like to view...
Par value is the minimum amount that can be reported as retained earnings
Indicate whether the statement is true or false
Which protected class has the most cases filed with the EEOC?
a) sex b) national origin c) race d) age e) disability
What have sociologists and organizational scientists concluded about the constant use of social media?
A. It has made users more social in face-to-face settings. B. It has strengthened all types of interpersonal connections. C. It has made users seek out more face-to-face interactions. D. It has made users less social in face-to-face settings. E. It has allowed users to be more "in the moment" during social interactions.
Harrison, an employee of Saft Associates, Inc, has gross salary for March of $4,000
The entire amount is under the OASDI limit of $117,000 and thus subject to FICA. He is also subject to federal income tax at a rate of 18%. Harrison has a deduction of $320 for health insurance and $80 for United Way. Which of the following is included in the entry to record the disbursement of his net pay? A) credit to Salaries and Wages Payable B) debit to United Way Payable C) debit to FICA Taxes Payable D) credit to Cash