Summarize pretax salary reductions.Discuss how these items affect your withheld income tax and taxexpense...Summarize...

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Accounting

Summarize pretax salary reductions.
Discuss how these items affect your withheld income tax and taxexpense paid by employers.
If you have not considered the pretax salary reductions, wouldyou consider it for the future tax year? Explain why or whynot.
If you use pretax salary reductions, how have they worked outfor you, will you use them again next year? Justify yourreasons.

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Payroll can involve a lot of deductions You have to withhold taxes and money for employee benefits When it comes to benefits there are two types of deductions pretax and posttax deductions What is a pretax deduction A pretax deduction is money you remove from an employees wages before you withhold money for taxes Pretax deductions are used to pay employee premiums of certain benefits Not all benefits can be pretax deductions Pretax deductions reduce an employees taxable wages meaning they will likely owe less federal income tax and FICA tax Social Security and Medicare taxes If your business is in an area with state or local taxes pretax deductions might also reduce an See Answer

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In: AccountingSummarize pretax salary reductions.Discuss how these items affect your withheld income tax and taxexpense...Summarize pretax salary reductions.Discuss how these items affect your withheld income tax and taxexpense paid by employers.If you have not considered the pretax salary reductions, wouldyou consider it for the future tax year? Explain why or whynot.If you use pretax salary reductions, how have they worked outfor you, will you use them again next year? Justify yourreasons.