Understanding Payroll Liabilities

The video tutorial covers known liabilities, focusing on payroll liabilities. It explains the differences between salaries and wages, and gross pay versus net pay. The tutorial also highlights the responsibilities of both employers and employees in managing payroll liabilities, emphasizing the deductions and expenses involved.

What is a known liability in the context of payroll?

• A liability that is optional

• A liability that is uncertain in amount

• A liability that is both known in amount and due date

• A liability that is unexpected

How do salaries differ from wages?

• Salaries are paid hourly, while wages are paid monthly

• Salaries are a fixed annual amount, while wages are based on hours worked

• Salaries are paid weekly, while wages are paid yearly

• Salaries are variable, while wages are fixed

What does gross pay represent?

• The amount after all deductions

• The total compensation before deductions

• The net amount received by the employee

• The amount after taxes

What is net pay?

• The total salary including bonuses

• The total earnings before any deductions

• The amount after all deductions are made

• The amount before taxes are deducted

Who is responsible for paying certain costs on behalf of the employee?

• The bank

• The employer

• The government

• The employee