Every year, you have to pay income taxes, sales taxes, and a lot of other business taxes. It’s complex to understand the taxation system and how individuals are taxed by IRS. However, the complexity doesn’t undermine the need to understand taxes and how the taxes are applied. When we talk about businesses, payroll taxes are […]
What Wages Are Subject To Social Security and Medicare IRS Tax? Read More »
A business entity is incurring different expenses, direct and indirect, to keep the cycle running. Some expenses are direct to the core product or service of the business. While other expenses are incurred for selling the products and are not directly part of the production process. Material and labor are included in the direct costs
What Is The Difference Between Direct and Indirect Overhead? Read More »
Wages have been slowly increasing in most areas. However, this increase has not followed other economic factors, such as inflation. Employees always want their wages to rise. However, employers may not share the same view. Wages also play a crucial role in the economy. However, governments rarely interject in the matter. They may introduce policies
What are Sticky Wages and Prices in Economics? Read More »
Auditing is a process in which an auditor examines a subject matter. Usually, this subject matter is a client’s financial statements. The auditors can be internal or external to that client. However, they must be independent of the client’s management. The primary objective of this process is for the auditors to form an opinion based
What Are the Recalculation and Reperforming Procedures in An Audit? Read More »
In the past, income increased at a higher rate than inflation. However, most people agree their raises have not had the same impact on their economic condition in recent times. One of the primary reasons behind it is income not increasing at the same rate as inflation. It has caused many people to consider other
Why are Wages Stagnant? 5 Reasons You Should Know Read More »
Investors include various asset classes as a part of their investment portfolios. They may consist of a mix of equity and debt instruments. On top of that, they may also want to expand their selection beyond the traditional investment options. In that case, they can consider alternative investments. They may consider various factors while building
Accounting for Equity Securities: Explanation, Journal Entry, and Example Read More »
Companies prepare financial statements to report their financial position and performance after every period. This period may differ from one company to another. On top of that, the interval for which they report those activities may also vary. For example, companies can prepare those statements monthly, quarterly or annually. However, they must use the same
Adjusted Vs. Unadjusted Cost of Goods Sold: What are the differences? Read More »
Employment contracts regulate the relationship between an employee and employer. It includes a signed agreement between an individual and another entity. Usually, the entity may consist of a company or business. In some cases, it may also involve other individuals or organizations. The individual is the employee, while the other entity becomes the employer in
Is the Wages Expense Account an Asset, Liability, Equity? Read More »
Wages are one of the common expenses for any company. When companies work in any sector, they require the services of their employees. Usually, these employees work in exchange for an hourly rate. This rate comes from the employment contract between the employer and the employee. In this case, the employer is the company employing
Are Wages Fixed or Variable Cost? (Explained) Read More »
A famous Danish proverb says, Promises make debt, and debt makes promises. Corporate finance and personal finance both focus on two main sources of financing: debt and equity. Debt financing is the mode by which businesses and individuals borrow money from financial institutions. The borrowed amount is called a loan, and it is paid back
Loan Amortization: Definition, Example, Calculation, How Does It Work? Read More »