Answer- | ||||||||||
Particulars | Amount | |||||||||
Gross Salary | $ 27,600 | |||||||||
Income tax | $ 7,250 | |||||||||
FICA taxes from employees | $ 1,170 | |||||||||
Payroll deduction for employee pension fund | $ 2,500 | |||||||||
FICA taxes from employer | ||||||||||
(same as employees) | $ 1,170 | |||||||||
Employer share of pension cost | $ 5,000 | |||||||||
(double of employee share) | ||||||||||
Unemployment Insurance tax | $ 600 | |||||||||
(20000*3%) | ||||||||||
Health Insurance payment from employer | $ 1,500 | |||||||||
Answer to 10. | ||||||||||
The amount of Cash that must be obtained to meet this net payroll to pay employees is - (A) $16,680 | ||||||||||
Explanation- | ||||||||||
Net Payroll to be paid | ||||||||||
=Gross Salary-Income taxes-Employees share of FICA taxes- Employees share of pension costs | ||||||||||
=27600-7250-1170-2500 | ||||||||||
= $ 16,680 | ||||||||||
Answer to 11 | ||||||||||
Total payroll tax Expense for this pay roll period is - (B) $ 1770 | ||||||||||
Explanation- | ||||||||||
Total Payroll tax expense constitutes employers contribution to payroll taxes including social security, medicare and unemployment insurance taxes | ||||||||||
= Total FICA Taxes + unemployment tax | ||||||||||
=1170+600 | ||||||||||
=1770 | ||||||||||
Correct figure is $ 1770 but most correct option available is - (B) $ 1760 | ||||||||||
Answer to 12 | ||||||||||
The Total liability for withholding and payroll taxes payable is - (D) $ 10,190 | ||||||||||
Explanation- | ||||||||||
Payroll tax payable constitutes both employer and employee tax contributions | ||||||||||
=Total FICA taxes+Income taxes+Unemployment tax | ||||||||||
=1170+1170+600+7250 | ||||||||||
=10,190 | ||||||||||
Answer to 13 | ||||||||||
The expense of employer for pension & health fringe benefits is (D) $6,500 | ||||||||||
Explanation- | ||||||||||
Employer pension is double of employees share of pension =$5000 | ||||||||||
Health Insurance Plan = $ 1500 | ||||||||||
Questions 10-13. DIRECTIONS: Answer Questions 10 through 13 based on the information below. Salary expense was...
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Please answer the whole question.
Paloma Co. has four employees. FICA Social Security taxes are
6.2% of the first $118,500 paid to each employee, and FICA Medicare
taxes are 1.45% of gross pay. Also, for the first $7,000 paid to
each employee, the company’s FUTA taxes are 0.6% and SUTA taxes are
2.15%. The company is preparing its payroll calculations for the
week ended August 25. Payroll records show the following
information for the company’s four employees.
Current Week
Name...
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Problem 9-3a paytoll expenses, withholdings and taxes.
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