![]() |
|
Financial Terms | |
Payroll tax expense |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: tax advisor, payroll, financial advisor, financial, accounting, money, business, inventory, |
Definition of Payroll tax expensePayroll tax expenseThe amount of tax associated with salaries that an employer pays to governments (federal, state, and local).
Related Terms:Accrued expenses payableexpenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services. accrued expenses payableThe account that records the short-term, noninterest- After-tax profit marginThe ratio of net income to net sales. After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. Annual fund operating expensesFor investment companies, the management fee and "other expenses," Asymmetric taxesA situation wherein participants in a transaction have different net tax rates. Average tax ratetaxes as a fraction of income; total taxes divided by total taxable income. ![]() average tax rateTotal taxes owed divided by total income. Before-tax profit marginThe ratio of net income before taxes to net sales. Break-even tax rateThe tax rate at which a party to a prospective transaction is indifferent between entering Cash flow after interest and taxesNet income plus depreciation. Corporate tax viewThe argument that double (corporate and individual) taxation of equity returns makes Corporate taxable equivalentRate of return required on a par bond to produce the same after-tax yield to Current Income Tax ExpenseThat portion of the total income tax provision that is based on Current Tax Payment Act of 1943A federal Act requiring employers to withhold income taxes from employee pay. Deferred Income Tax ExpenseThat portion of the total income tax provision that is the result ![]() Deferred Tax AssetFuture tax benefit that results from (1) the origination of a temporary difference Deferred Tax LiabilityFuture tax obligation that results from the origination of a temporary Deferred taxesA non-cash expense that provides a source of free cash flow. Amount allocated during the Depreciation expenseAn expense account that represents the portion of the cost of an asset that is being charged to expense during the current period. Depreciation tax shieldThe value of the tax write-off on depreciation of plant and equipment. depreciation tax shieldReduction in taxes attributable to the depreciation allowance. Double-tax agreementAgreement between two countries that taxes paid abroad can be offset against earnings before interest and income tax (EBIT)A measure of profit that Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Effective Tax RateThe total tax provision divided by pretax book income from continuing Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. Equivalent taxable yieldThe yield that must be offered on a taxable bond issue to give the same after-tax ExpenseThe reduction in value of an asset as it is used for current company operations. Expense ratioThe percentage of the assets that were spent to run a mutual fund (as of the last annual ExpensedCharged to an expense account, fully reducing reported profit of that year, as is appropriate for ExpensesThe costs incurred in buying, making or producing goods and services. ExpensesCosts involved in running the company. Federal Unemployment Tax Act (FUTA)A federal Act requiring employers to pay a tax on the wages paid to their employees, which is then used to create a Fixed ExpensesCost of doing business which does not change with the volume of business. Examples might be rent for business premises, insurance payments, heat and light. fixed expenses (costs)expenses or costs that remain the same in amount, Foreign tax creditHome country credit against domestic income tax for foreign taxes paid on foreign GENERAL-AND-ADMINISTRATIVE EXPENSESWhat was spent to run the non-sales and non-manufacturing part of a company, such as office salaries and interest paid on loans. Imputation tax systemArrangement by which investors who receive a dividend also receive a tax credit for INCOME TAXWhat the business paid to the IRS. Income taxA government tax on the income earned by an individual or corporation. Income Tax ExpenseSee income tax provision. Income Tax ProvisionThe expense deduction from pretax book income reported on the Indirect Taxestaxes paid by consumers when they buy goods and services. A sales tax is an example. Inflation TaxThe loss in purchasing power due to inflation eroding the real value of financial assets such as cash. Interest equalization taxtax on foreign investment by residents of the U.S. which was abolished in 1974. Interest tax shieldThe reduction in income taxes that results from the tax-deductibility of interest payments. interest tax shieldtax savings resulting from deductibility of interest payments. Investment tax creditProportion of new capital investment that can be used to reduce a company's tax bill Investment Tax CreditA reduction in taxes offered to firms to induce them to increase investment spending. Limited-tax general obligation bondA general obligation bond that is limited as to revenue sources. management expense ratio (MER)The total expenses expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by the Fund. Margin Tax RateThe tax rate applicable to the last unit of income. Marginal tax rateThe tax rate that would have to be paid on any additional dollars of taxable income earned. marginal tax rateAdditional taxes owed per dollar of additional income. Marginal Tax RatePercent of an increase in income paid in tax. Office expenseThe amount of expense incurred for the general operation of an office. Operating expenseAny expense associated with the general, sales, and administrative OPERATING EXPENSESThe total amount that was spent to run a company this year. Operating ExpensesThe amount of money the company must spend on overhead, distribution, taxes, underwriting the risk and servicing the policy. It is a factor in calculating premium rates. Payroll CycleThe period of service for which a company compensates its employees. Payroll expenseThe amount paid to employees for services rendered; synonymous with salary expense and wage expense. Payroll journalA journal used to record the payroll of a company. Payroll RegisterA report on which is summarized the wage and deduction information Payroll StabilizationThis calculation is used by states to determine the unemployment Payroll taxes payableThe amount of payroll taxes owed to the various governments at the end of a period. Personal tax view (of capital structure)The argument that the difference in personal tax rates between Prepaid expenseAn expenditure that is paid for in one accounting period, but which Prepaid expensesexpenses that have been paid for but have not yet been used up; examples are prepaid insurance and prepaid rent. Profit before interest and taxes (PBIT)See EBIT. Progressive TaxA tax in which the rich pay a larger percentage of income than the poor. Contrast with regressive tax. Progressive tax systemA tax system wherein the average tax rate increases for some increases in income but Proportional TaxA tax taking the same percentage of income regardless of the level of income. Regressive TaxA tax in which the poor pay a larger percentage of income than the rich. Contrast with progressive tax. Rent expenseThe amount of expense paid for the use of property. revenue-driven expensesOperating expenses that vary in proportion to Roth IRA. An IRA account whose earnings are not taxable at all under certaincircumstances. Salary expenseThe amount paid to employees for services rendered; synonymous with payroll expense and wage expense. Sales TaxA tax levied as a percentage of retail sales. SELLING EXPENSESWhat was spent to run the sales part of a company, such as sales salaries, travel, meals, and lodging for salespeople, and advertising. Short-term tax exemptsShort-term securities issued by states, municipalities, local housing agencies, and Split-rate tax systemA tax system that taxes retained earnings at a higher rate than earnings that are State Disability TaxA tax charged by selected states to maintain a disability insurance Statutory Tax RateThe income tax rate that is stated in income tax law. It is applied to taxable TANs (tax anticipation notes)tax anticipation notes issued by states or municipalities to finance current Tax anticipation bills (TABs)Special bills that the Treasury occasionally issues that mature on corporate tax benefit (of depreciation)the amount of depreciation deductible for tax purposes multiplied by the tax rate; Tax booksSet of books kept by a firm's management for the IRS that follows IRS rules. The stockholder's Tax clawback agreementAn agreement to contribute as equity to a project the value of all previously tax deferralpostponing taxation of an amount until a future date Tax deferral optionThe feature of the U.S. Internal Revenue Code that the capital gains tax on an asset is tax-deferred incomecurrent compensation that is taxed at a future date Tax-deferred retirement plansEmployer-sponsored and other plans that allow contributions and earnings to Tax differential view ( of dividend policy)The view that shareholders prefer capital gains over dividends, tax-exempt incomecurrent compensation that is never taxed Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |