Ch 11 Payroll Accounting Flashcards

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Any interest in a corporation, partnership, trust, or estate. A franchise engaged in professional sports and any intangible assets acquired in connection with acquiring the franchise is a section 197 intangible amortizable over a 15-year period. Any other relationship with customers involving the future provision of goods or services. A contract for the use of, or a term interest in, any item in this list. You may not be able to amortize section 197 intangibles acquired in a transaction that didn’t result in a significant change in ownership or use. The cost of acquiring assets for the partnership or transferring assets to the partnership. It could be amortized over the life of the partnership if the partnership had a fixed life.

  • Anti-churning rules prevent you from amortizing most section 197 intangibles if the transaction in which you acquired them didn’t result in a significant change in ownership or use.
  • Keeping up with payroll tax laws can be confusing and time-consuming.
  • When you capitalize a cost, you add it to the basis of property to which it relates.
  • Employer Gail Winters and her employees are subject to social security, medicare, FUTA and SUTA taxes.

The following is a list of some architectural barrier removal costs that can be deducted. Your indirect costs of producing the property are $200,000 or less. Personal property you acquire for resale if your average annual gross receipts are $26 million or less for the 3 prior tax years. However, these rules don’t apply to the following property.

Accrued expenses

The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. The city is paying the principal and interest with the annual payments made by the property owners. Tangible personal property with an estimated production period of more than 2 years. You can generally deduct the interest if the contract was issued before June 9, 1997, and the covered individual what is payroll expense is someone other than an employee, officer, or someone financially interested in your business. If the contract was purchased before June 21, 1986, you can generally deduct the interest no matter who is covered by the contract. In addition, certain other expenses that may seem to be interest, but are not, cannot be deducted as interest. Subtract any qualified stated interest payments from the result in .

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Wage and salary are often used interchangeably but they refer to different types of payments for employment. The worker is paid per hour for a set amount of hours per week. If they go over the set amount of hours, then they are usually paid overtime. Overtime pay can sometimes be higher than the regular hourly pay; sometimes 1.5x the hourly pay.

Payroll Service Costs

When the interest earned is used up, any remaining payments are from loan proceeds. If you receive loan proceeds in cash or if the loan proceeds are deposited in an account, you can treat any payment made from any account you own, or from cash, as made from those proceeds. This applies to any payment made within 30 days before or after the proceeds are received in cash or deposited in your account. Even if the lender disburses the loan proceeds to a third party, the allocation of the loan is still based on your use of the funds.

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