One topic covered in this chapter is: "methods of paying wages and salaries." Using the knowledge...

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Accounting

One topic covered in this chapter is: "methods of paying wagesand salaries." Using the knowledge you gained in this chapter,examine the following real life situation and answer both questions(remembering the requirements above): You are a payroll accountantin a small accounting firm. One of your clients, a small businessowner, has told you that he wants to pay some employees in cashinstead of check, direct deposit, or pay cards. His reason forwanting to pay some employees in cash is that some of his employeesdo not have a checking account. While this practice is technicallynot illegal, what advice would you give the small business owner?What is your reason behind offering this advice?

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Paying in cash is absolutely legal provided that the payroll is reported to the IRS and certain deductions that should be done such as below are done Income taxes that are state federal and local FICA taxes Health insurance and anything See Answer

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