A term often used when referring to production workers and other workers who are paid with an hourly pay rate. These workers’ compensation is referred to as “wages” (as opposed to salaries).
A term often used when referring to production workers and other workers who are paid with an hourly pay rate. These workers’ compensation is referred to as “wages” (as opposed to salaries).
A term often used when referring to office workers, managers, professionals, and executives. These employees’ pay is often stated as a salary for a month (and not as an hourly pay rate).
Insurance often required by states and paid for by the employer to compensate workers who were injured on the job. The amount of the insurance premiums vary by type of work performed. For example, rates are higher for...
Under the accrual method of accounting, this account reports the amount of worker compensation insurance expense that pertains to the period indicated in the heading of the income statement, whether or not the company...
This current liability account reports the amount a company owes as of the balance sheet date for its worker compensation insurance policy premiums. The amounts owed are usually based on the policy’s rates for the...
Under accrual accounting, how are worker comp premiums handled? Author: Harold Averkamp, CPA, MBA Worker comp insurance premiums should be charged to the areas where the related wages and salaries are charged. Let’s...
Where do worker compensation insurance costs get reported on the financial statements? Author: Harold Averkamp, CPA, MBA Worker compensation insurance costs (also referred to as worker comp) should appear on the income...
Are insurance premiums a fixed cost? Author: Harold Averkamp, CPA, MBA The cost of the insurance premiums for a company’s property insurance is likely to be a fixed cost. The cost of worker compensation insurance is...
Our Explanation of Payroll Accounting discusses the taxes and benefits which are withheld from employees' pay as well as the taxes and benefits that are expenses for the employers. Also provided are examples of the...
Our Explanation of Payroll Accounting discusses the taxes and benefits which are withheld from employees' pay as well as the taxes and benefits that are expenses for the employers. Also provided are examples of the...
What is workers' compensation insurance? Author: Harold Averkamp, CPA, MBA Workers’ compensation insurance is likely to be an insurance policy obtained by a company to cover the medical costs and lost wages for its...
Payroll Accounting Author: Harold Averkamp, CPA, MBA 38 Q&A Popular Recent What is the difference between wages and salary? What is the difference between biweekly and semimonthly payroll? How do I record an advance to...
Payroll Accounting Quiz and Test | AccountingCoach Payroll Accounting(Practice Quiz) Download PDF Author: Harold Averkamp, CPA, MBA For multiple-choice and true/false questions, simply press or click on what you think is...
Usually the pay for the hours worked in excess of 40 hours per week. Federal laws require payment for these hours for employees who are not able to control their hours. For example, a company is required to pay a...
Benefits given to employees that are in addition to wages and salaries. Examples include health, dental, life, vision, and disability insurances, employer’s portion of social security and Medicare tax, paid...
The additional amount given to employees for the overtime hours. Usually this is the “half-time” in time and one-half. For example, if an employee’s hourly pay rate is $10 per hour and the employee...
How do I determine my payroll tax liabilities? Author: Harold Averkamp, CPA, MBA Your payroll tax liabilities will include the following: Federal, state, and local income taxes withheld from employees’ wages, salaries,...
A percentage of an hourly wage rate (or salary) that represents the employer’s additional costs of employee benefits such as paid vacation days, paid sick days, insurance (health, dental, life, worker...
Compensation for employees that is in addition to salaries and wages. Examples include paid absences (vacation, sick, holiday), insurances (health, dental, vision, life), pensions, profit sharing contributions, employer...
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
What is insurance expense? Author: Harold Averkamp, CPA, MBA Definition of Insurance Expense Under the accrual basis of accounting, insurance expense is the cost of insurance that has been incurred, has expired, or has...
What is payroll accounting? Author: Harold Averkamp, CPA, MBA Definition of Payroll Accounting Payroll accounting involves a company’s recording of its employees’ compensation including: gross wages, salaries,...
What is a fringe benefit rate? Author: Harold Averkamp, CPA, MBA Definition of Fringe Benefit Rate A fringe benefit rate is a percentage that results from dividing the cost of an employee’s fringe benefits by the wages...
What is the difference between a contingent liability and an estimated liability? Author: Harold Averkamp, CPA, MBA Definition of a Contingent Liability A contingent liability is a potential liability (and a potential...
Nonmanufacturing Overhead Author: Harold Averkamp, CPA, MBA 23 Q&A Popular Recent What is the difference between product costs and period costs? Are salaries and wages part of expenses on the income statement? What is...
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