Año: 2021

Bookkeeping

Social Security Wage Base for 2020 Announced SPARK Blog

Since the employer tax must equal the employee Social Security tax, your share would also be $124. Thus, the total Social Security tax payment that you would submit to the IRS for this employee (for this pay period) would be $248. Both employer and employee pay an equal amount of Social Security and Medicare taxes, totaling 15.3% of the employee’s gross earnings. Employees and employers share the total tax burden of Social Security and Medicare taxes. Half of the FICA tax amount owed is paid by the employer and the other half is withheld from an employee’s paycheck. For wo

Bookkeeping

Consolidate: What It Means in Business and Finance

In the income statement, eliminating intercompany sales and services prevents overstated revenue and expenses, reflecting the group’s true operational success. Similarly, the balance sheet excludes intercompany balances, accurately representing the group’s assets and liabilities. Proper treatment of non-controlling interest refines the equity section, highlighting the portion attributable to external shareholders. This transparency is essential for investors, creditors, and regulatory agencies, offering a clear view of the group’s financial integrity and efficiency. For o