Why is it important to have columns on the payroll register title "Earnings subject to Federal Withholding" and "Earnings subject to FICA"?
A) Both columns contain information about the employer's tax matching responsibilities.
B) It facilitates accuracy in employee payroll tax computations.
C) It allows payroll employees to divert funds into faux accounts.
D) It adds complexity to the payroll register.

Question

Quizplus · Accepted Answer

The columns "Earnings subject to Federal Withholding" and "Earnings subject to FICA" are important because they help facilitate accuracy in employee payroll tax computations. By separating these earnings categories, employers can ensure that the correct amount of taxes are being withheld and remitted. This is important for both the employer and the employee, as it helps avoid potential penalties and ensures that employees are paying the correct amount of taxes. The other answer choices are incorrect as they do not accurately describe the purpose of these columns.

Why Is It Important to Have Columns on the Payroll