1. What are pretax salary reductions? How will these items affect your withheld income tax and tax expense paid by employers?

What are the methods to compute the amount of income tax to be withheld? Examples will be great.

2. Earl Farr, Mandy Wells, and Rob Good are clerks in a busy doctor's office. One of Earl's responsibilities is to reconcile the bank statement. He isn't involved in authorizing payments, writing checks, or making deposits).

Ron is the accounts receivable clerk. He posts all payments and makes bank deposits. Occasionally, when he gets busy, Earl asks Ron to perform the monthly bank reconciliation. After it is reconciled, Earl initials it as though he had done it.

Mandy, who is charge of accounts payable, has been observing Earl and Ron and is considering saying something to their supervisor, the office manager. Mandy is sure the office manager is unaware of what is going on.

Are what Earl and Ron doing unethical?

If Mandy chooses not to say anything to the office manager, is she being unethical?

Answer rating: 100% (QA)

1 Pretax deductions are deductions that can be used to discount the amount of taxable wages a person will owe taxes on Without these deductions an individual in most cases would owe income taxes on al... View the full answer