There are several definitions for the term ‘allowances’. With payroll, allowances are the amount of adjustments to an employees paycheck to determine the final federal income tax to withhold from each paycheck. An employee prepares a Form W-4 to determine the number of allowances in calculating the withholding amount. An allowance is similar to the number of dependents in your household. Single equals one, married equals two and add one for each child you care for in your household. With sales, allowances refer to the amounts granted to a customer to solidify the sale or eliminate a return.
Not every customer is satisfied with the product they purchase. The old saying of ‘You can’t please everyone all the time’ is true. This is reality and business management must accept this basic principle. What is important is the trend involved with returns. If they continue to increase from one period to the next, something is amiss.
Contra accounts are utilized to help present clearer information to readers of financial reports. They are used to improve the decision model. This lesson provides several different methods to exercise the advantages of this accounting ledger.
In construction accounting, accountants and bookkeepers use certain terms and there are distinct meanings associated with these terms. This article is designed to introduce beginner accountants and contractors to these terms from the perspective of financial reporting.
This article is designed to help the contractor address the proper procedures and documentation related to allowances in a new home contract.
Form W-4 is a form filled out by an employee to certify to the employer the personal tax situation of the taxpayer. It is used by employers via the human resources department to fulfill three primary tasks. First, confirm the legal name and address of the employee.
