So, as an employer, how do you know what counts as reportable fringe benefits? The value of a fringe benefit is subject to federal income tax, Social Security tax, Medicare tax, and FUTA, and the value must be included in Boxes 1, 3 and 5 of Form W-2... Read more
Securities trading is offered through Robinhood Financial LLC. Harold Averkamp has worked as a university accounting instructor, accountant, and consultant for more than 25 years.... Read more
A fiscal year is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many jurisdictions require company financial reports to be... Read more
A creditor is an entity or person that lends money or extends credit to another party. A debtor is an entity or person that owes money to another party. Thus, there is a creditor and a debtor in every lending arrangement. The relationship between a d... Read more
A capital account reflects an owner's initial investment into their company. You can present this information to the bank by providing a bank statement or balance sheet, and if granted a loan, you can record any bank loans in their section of your ba... Read more
A bank reconciliation will also detect some types of fraud after the fact; this information can be used to design better controls over the receipt and payment of cash. The accountant adjusts the ending balance of the bank statement to reflect outstan... Read more
It usually means someone has forgotten to deposit the check in his account. If the check stays unprocessed for many months, call the recipient as a courtesy to remind her to deposit the check. Not producing a reconciliation report when one is needed ... Read more
I know I have seen jobs posted that pay $50K, and K is meant to stand in for thousand. K comes from the Greek word kilo which means a thousand. The Greeks would likewise show million as M, short for Mega. So if we stay consistent with the Greek abbre... Read more
Later, this entry will be removed as part of the EOD batch process. You can use them as typical checking accounts in every respect except to write a paper check. Finally, the account activity section details all memos that occurred during the stateme... Read more
The federal government withholds Social Security taxes up to the annual wage base, which was set at $142,800 in 2021 and $147,000 in 2022. FICA tax is typically 7.65% of earnings up to $127,200 . Employees pay 6.2% of their earnings for Social Securi... Read more
