Question

In about 200 words (total), answer the following questions:

Employees are subject to taxes withheld from their paychecks.

List the federal taxes withheld from most employee paychecks.

Explain how a defined contribution pension plan works.

When should the liability associated with a product warranty be recorded? Discuss.

Answer 1

Answers:-

1)Employees are subject to taxes withheld from their paychecks.

●Employee's federal income tax, social security, and Medicare.

2)

●Company invests contributions on behalf of the employee during the employee's working years. Normally, employee and employer contribute to the plan. The employee's pension depends on total contributions and the investment returns earned on those contributions.

3)

●To match revenues and expenses properly, liability to cover product warranties should be recorded in the period during which the sale of the product is recorded.