Social security taxes determine a 6.2 percent deduction from your pay check with effect from 2018. Medicare taxes account for an additional deduction of 1.45 percent. Your pay stub may show these deductions lumped under a single head called FICA taxes. It is the amount of salary paid by an entity in advance but the …

When such a situation arises, the company ABC has to make some complex changes in its balance sheet to note down the transaction. According to the law, the company ABC must discount its future cash flows to adjust for the incremental borrowing rate. With the new standards, every lease accountant now needs to be knowledgeable …

Per IRS/State regulation – not eFile.com – an Illinois state tax return can only be e-Filed together with an IRS tax return. Instruction how to only prepare a IL state return on eFile.com and then download, print sign and mail it in. The state of Illinois collects 39.2 cents for every gallon of regular gasoline. …

The Times Interest Earned Ratio will be calculated as 5.00, indicating that the company can cover its interest payments five times over. For companies without debt or minimal interest expenses, the TIE ratio may be less relevant. EBIT is calculated by subtracting operating expenses from total revenues, excluding interest and taxes. Thus, the company’s tax …

(4) Contribution margin is listed after deducting all variable costs from sales. (5) Fixed production costs are shown below the contribution margin on the income statement with fixed operating costs. With variable costing, all variable costs are subtracted from sales to arrive at the contribution margin. The fixed cost per unit is $15, determined by …

It’s used to state a business’s assets, liabilities, and shareholder’s equity at a given point in time, offering a snapshot of everything your business owns and owes and telling you the business’s overall worth. Generally speaking, balance sheets are instrumental in determining the overall financial position of the business. An accounting balance sheet is a …

Then, it decreases each month as revenue is recognized due to the delivery of the product or service. Meanwhile, the Deferred Revenue balance decreases each month as revenue for the product or service is recognized. Accounting Prose empowers our clients with the accurate data they need to make crucial financial decisions and successfully scale their business. …

At a minimum, you should complete Form W-7 when you are ready to file your federal income tax return by the return’s prescribed due date. If the tax return you attach to loan conversion into equity share capital under companies act 2013 Form W-7 is filed after the return’s due date, you may owe interest …

Let’s briefly elaborate these sequential steps in rest of this article. U.S. Treasury bonds have risk-free rates as they are guaranteed by the U.S. government, making it as safe as it gets. Financial Statement Analysis (FSA): the Definition and Ratios The estimates about costs, revenues, and profits may not come true. Whatever capital budgeting decisions …

The frequency of your paychecks will affect their size. The more paychecks you get assets = liabilities + equity each year, the smaller each paycheck is, assuming the same salary. If you work for yourself, you need to pay the self-employment tax, which is equal to both the employee and employer portions of the FICA …