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Business, 01.10.2021 14:00 PotatoBananad
Maura Lowe is a payroll accountant for N & L Company. She prepares and processes the company’s payroll on a weekly basis and has been at N & L for only three months. All employees are paid on Friday. On Wednesday afternoon, Simon Lentz, one of the company’s top sales associates, asks Maura to not take out any payroll deductions from his pay this week. He explains that he is short of cash and needs the full amount of his gross salary just to put food on the table and make his past-due car payment. He promises Maura that she can catch up on the deductions over the next month. The deductions include employee income tax, Social Security tax, Medicare tax, and health insurance premiums.
Discuss if Simon’s request of Maura is ethical. What action should Maura take regarding Simon’s request.
Discuss what effect this would have on the liabilities section of the balance sheet and how omitting deductions from a pay period could cause errors in the company’s financial statements.
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Answers: 3
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Maura Lowe is a payroll accountant for N & L Company. She prepares and processes the company’s p...
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