Question

Use the following table to answer the question: Wages and salaries expense (gross pay) $2,250,000 Amounts withheld from employees' pay: $170,000 Income taxes Social Security and Medicare $150,000 320,000 Payroll taxes expense: Social Security and Medicare $150,000 Unemployment taxes 58,000 208,000 Workers' compensation premiums 130,000 Group health insurance premiums (paid by employer) 252,000 Contributions to employees pension plan (paid by employer and fully funded) 140,000 Cost of other postretirement benefits $90,000 Unfunded 120,000 210,000 Rose Company's total payroll-related expense for the year is

Answer 1

Payroll related expense:

Wages and salaries expense $ 2,250,000

Payroll taxes expense:

Socio security and medicare $ 150,000

Unemployment taxes $ 58,000

Workers compensation premiums $ 130,000

Contibution to employees pension plans $ 140,000

Group Health insurance premium $ 252,000

Cost of other post retirement benefits $ 90,000

Unfunded $ 120,000

Total Payroll expense    $ 3,190,000