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Question: Maura Lowe is a payroll accountant for Namp;L Company. She prepares and processes the company's payroll on a weekly basis and has been at NL 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.
- Is Simon's request of Maura ethical? Why or why not?
- If this were the first pay period of the year and Maura agreed not to take out deductions from Simon's pay, what effect would this have on the liabilities section of the balance sheet?
- Discuss what action Maura should take regarding Simon's request.
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