When an employee has a change in status, such as adding or subtracting dependents, or submits a new W-4 withholding form, you'll record that information and verify that the payroll system is updated. Filing is a large part of the job.
For instance, if a policy expired on January 1, 2007, the data included on the Experience modification would comprise the period from January 1, 2003 to January 1, 2006. Experience modifiers are normally recalculated for an employer annually. Each year, a newer year's data is added to the three-year window of experience used in the calculation, and the oldest year from the prior calculation is dropped off. The other two years worth of data in the rating window are also updated on an annual basis.
The Inventory Equation. When you write down or write off inventory, you reduce the value of ending inventory for the period. The inventory equation states that the cost of goods sold, or COGS, equals the beginning inventory plus purchases minus ending inventory. Write-downs therefore raise COGS, which has the effect of lowering gross profits and taxable income. To record the write-down without using an inventory reserve, debit COGS for the loss and credit inventory by the same amount.