Key Terms: Chapter Twelve
Amounts due to suppliers relating to the purchase of goods and services on credit
Term to describe paid time off; vacations, sick leave, etc.
Events that may or may not give rise to an actual liability because the outcome is uncertain; examples include lawsuits, environmental damage issues, and so forth
A type of pension plan where the benefits are a function of years of service, pay, and age; the ultimate employer cost is not known in advance
A type of pension plan where the benefits are based on amounts in trust for the benefit of the employee; employer contributions are usually a fixed percentage of pay
A person who works for a specific business and whose activities are directed by that business
Federal Insurance Contributions Act (also known as social security and Medicare); establishes a tax that employers must withhold and match for government-based retiree benefit
A form required to be issued to an independent contractor reporting amounts paid; to assist with tax compliance issues (this form used to report other payments like interest, etc.)
Federal Unemployment Tax levied on employer to provide funds for unemployed workers; rate is dependent on existence of SUTA and employer history of layoffs, etc.
Also known as gross earnings; this it is the total amount earned by an employee before any deductions
Taxes that are based on the amount income; for employees such amounts must be withheld by employers and remitted to the government
One who performs a designated task or service for a company, and the company has the right to control or direct only the result of the work done
Also known as net earnings; this is the gross pay less all applicable deductions ("take home pay")
Formal short-term borrowings usually evidenced by a specific written promise to pay
A general term to describe some form of arrangement for continuing payments to retirees
State Unemployment Tax levied on employer to provide funds for unemployed workers; rate is adjusted for employer history of layoffs, etc.
An annual statement provided to employees stating the amount of earnings and withholdings; assists employee in preparing their own tax returns
A form filled out by an employee stating the amount of exemptions to which they are entitled for tax purposes; such exemptions bear on the amount of income tax withholdings
A liability that is recorded for the future costs of claims that are anticipated because of product warranty agreements
Insurance paid by the employer to cover work related injuries sustained by employees