Payroll Accounting 2014, Chapter 4 Net Activities

Payroll Accounting, 2015 Edition

Net Activities

CHAPTER 4

  1. The IRS has an automatic withholding calculator at .Here are some things that are needed to calculate appropriate withholding for you:
  2. Have your most recent pay stubs handy.
  3. Have your most recent income tax return handy.
  4. Fill in all information that applies to your situation.
  5. Estimate values if necessary, remembering that the results can only be as
    accurate as the input you provide.
  1. Why would you want to increase or decrease the number of your withholding allowances?

Using the calculator:

  1. What would you have to do to increase the amount of your tax refund at the end of the year?
  1. What would you have to do to increase the amount of your paycheck during the year?
  1. Go to or search for “EFTPS” at Answer the following questions:
  1. How long does it take a taxpayer to enroll in the electronic federal tax payment system (EFTPS)?
  1. What are the advantages of the EFTPS?
  1. Go to Answer the following questions:
  2. How is self-employment income treated differently than income earned when you work for an employer?
  1. How do you report self-employment income?
  1. You were hired as the sales manager for a new marketing company. Your salespeople will travel extensively, using both domestic and international travel. The salespeople may be gone for as little as a day, or as long as a month. Using a search engine such as and answer the following questions:
  2. Name some examples of travel-related expenses that are deductible.
  1. What sort of records should be kept regarding your travel expenses?
  1. You think you could sell more of your product if you entertained clients on a cruise ship. Is the cruise deductible as a travel expense?
  1. Go to then and answer the following questions:
  1. What is a cafeteria plan?
  2. What is a flexible spending account (FSA)?
  3. What is the difference between a cafeteria plan and a flexible spending account?
  1. Go to Answer the following questions:
  1. What is a 401(k)?
  1. Why not just save for your retirement on your own?
  1. What is the maximum amount an employee can contribute to a 401(k)?

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