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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following equations calculates net pay for an employee?

Net Pay = Gross Pay - Employer Payroll Taxes

Net Pay = Gross Pay + Overtime Pay + Payroll Deductions

Net Pay = Gross Pay - Payroll Deductions

Net Pay = Gross Pay + Payroll Taxes

Previous problemNext problem

Verified step by step guidance

Understand the concept of net pay: Net pay is the amount an employee takes home after all deductions are subtracted from their gross pay.

Identify the components of gross pay: Gross pay includes the total earnings before any deductions, such as regular wages, overtime pay, and bonuses.

Recognize payroll deductions: Payroll deductions include mandatory deductions like income tax, Social Security, Medicare, and voluntary deductions like retirement contributions or health insurance premiums.

Formulate the correct equation: Net Pay = Gross Pay - Payroll Deductions. This equation reflects the subtraction of all deductions from the gross pay to calculate the net pay.

Compare the given options: Evaluate each option provided in the problem and confirm that the correct equation is Net Pay = Gross Pay - Payroll Deductions, as it accurately represents the calculation of net pay.