Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Payroll and Payroll Taxes

Financial Accounting

9. Current Liabilities

Payroll and Payroll Taxes

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Multiple Choice

How do payroll procedures differ for employees who request direct deposit of their pay compared to those who receive paper checks?

Payroll staff electronically transfer net pay directly to the employee's bank account instead of issuing a physical check.

Payroll taxes are not withheld for employees who use direct deposit.

Direct deposit requires employees to pay an additional processing fee.

Employees must pick up their pay stubs in person if they use direct deposit.

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Verified step by step guidance

Understand the concept of direct deposit: Direct deposit is an electronic transfer of an employee's net pay directly into their bank account, eliminating the need for a physical check.

Clarify the payroll procedure for direct deposit: Payroll staff initiate an electronic transfer of the net pay amount to the employee's designated bank account. This process is automated and does not involve issuing a paper check.

Address payroll taxes: Payroll taxes are withheld for all employees, regardless of whether they use direct deposit or receive paper checks. This is a standard requirement and does not change based on the payment method.

Evaluate additional fees: Direct deposit does not typically require employees to pay an additional processing fee. This is a common misconception, as the cost of processing is usually borne by the employer or included in payroll system expenses.

Discuss pay stub distribution: Employees who use direct deposit may receive their pay stubs electronically or via mail, depending on the employer's policy. They are not required to pick up their pay stubs in person unless specified by the employer.