Credit the FICA tax payable, federal income withholding payable, state income withholding payable, and any other withholdings on employee paychecks. Initial recordings, also known as the originating entry, are the primary entries for payroll accounting. Payroll accounting helps you keep track of employee compensation and other payroll costs. Accounting for payroll gives you an accurate snapshot of your expenses. Payroll liabilities relate to expenses a business owes but hasn’t yet paid. Independent contractors are often…

deduction: Explore its Definition & Usage Your payroll department must identify pretax deductions — amounts removed from gross pay before calculating payroll taxes — to ensure compliance and maximize employee benefits. A standard deduction is a set amount that a person who chooses not to itemize their deductions on his tax return. The tax code allows for a standard deduction to be taken, rather than itemizing such expenses as medical bills, premiums paid for medical…

Alternatively, the company paying large dividends that exceed the other figures can also lead to the retained earnings going negative. A positive retained earnings balance demonstrates that the company is retaining a portion of its income for reinvestment in the business. This can indicate healthy financial management and a commitment to growth. However, retained earnings should be analyzed in conjunction with other financial metrics to get a complete picture of the company’s financial performance. High…

Corporations Reap Billions in Tax Breaks Under Bonus Depreciation Under this method, the total depreciable amount is divided by the estimated total units the asset will produce over its useful life. Depreciation expense is then calculated based on the actual units produced in a given period. For example, if a machine is expected to produce 100,000 units over its life and costs $100,000, the depreciation expense per unit would be $1. If the machine produces…

Best small business accounting software of 2025 With the paid Plus plan, your credit card and ACH payment processing fees are lower, and you get access to cash flow insights and expense categorization. The lowest-priced plan starts at $10 per month with add-ons for additional collaborators, branches, autoscans, and even snail mail. When it comes to bookkeeping, Sunrise stands out as the top choice. Specifically designed to simplify bookkeeping for small businesses, its user-friendly, self-service…

Thus, the US celebrated the first anniversary of its independence on July 4, 1977, which involved just gunshots fired in the morning and evening. The Massachusetts General Court recognized the state’s celebration of independence in 1781. Richard Henry Lee drafted the resolution for independence, which led to the Declaration of Independence, which was almost unanimously voted in favor. Short and Sweet Happy 4th Wishes Celebrate the joy of retirement with these 50 heartfelt congratulations wishes…

This type of evaluation focuses on if the program was implemented as planned, if it is reaching its intended audiences, and producing the desired outputs. Process evaluation is mostly quantitative in nature, as it focuses heavily on counts, frequencies, or averages. This type of evaluation should be used at each stage of a program or initiative on an ongoing basis. When citizens understand the principles and purposes of program evaluation, they’re better positioned to hold…

However, tax officials didn’t want people to have to account for every tiny gift they make. The $15,000 annual exclusion amount was the compromise to prevent all but the largest gifts from triggering any IRS requirements. The $15,000 is indexed to inflation, but low inflation rates have kept the amount unchanged since 2018. Beginning January 1, 2011, estates of decedents survived by a spouse may elect to pass any of the decedent’s unused exemption to…