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 is a mandatory deduction from an employee's pay in the United States?

Charitable contributions

Federal income tax

Health insurance premiums

Social Security tax (FICA)

Previous problemNext problem

Verified step by step guidance

Understand the concept of mandatory deductions: Mandatory deductions are amounts that employers are legally required to withhold from an employee's paycheck. These deductions are typically for taxes and government programs.

Identify the mandatory deductions in the United States: Federal income tax and Social Security tax (FICA) are mandatory deductions. These are required by law and are withheld from every employee's paycheck.

Clarify the role of Federal income tax: Federal income tax is a tax levied by the federal government on an individual's earnings. Employers calculate the amount to withhold based on the employee's W-4 form and the IRS tax tables.

Explain Social Security tax (FICA): The Federal Insurance Contributions Act (FICA) tax includes Social Security and Medicare taxes. Social Security tax funds retirement, disability, and survivor benefits, while Medicare tax funds healthcare for individuals aged 65 and older.

Differentiate mandatory deductions from optional ones: Charitable contributions and health insurance premiums are not mandatory deductions. These are voluntary and depend on the employee's choice to participate in such programs or make donations.