Question

part 1
Required information [The following information applies to the questions displayed below.) Aspen Ski Resorts has 150 employees, each working 40 hours per week and earning $19 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. Required: 1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct deposit of payroll for the first week of January. Total salary expense Total withholdings Actual direct deposit $ 0
part 2part 3

Answer 1

1
Total salary expense	114000	=150*40*19
Federal Income tax	17100	=114000*15%
State Income tax	5700	=114000*5%
FICA tax	8721	=114000*7.65%
Total withholdings	31521
Actual direct deposit	82479	=114000-31521
2
FICA tax	8721	=114000*7.65%
Unemployment tax	7068	=114000*6.2%
Total payroll tax expense	15789
3
NO accounting entry required