Question

QUESTION 8 Use the following table below to answer the question: $2,250,000 Wages and salaries expense (gross pay) Amounts withheld from employees' pay $170,000 Income taxes $150,000 320,000 Social Security and Medicare Payroll taxes expense: $150,000 Social Security and Medicare Unemployment taxes Workers' compensation premiums 208,000 130,000 252,000 140,000 58,000 Group health insurance premiums (paid by employer) Contributions to employees' pension plan (paid by employer and fully funded) Cost of other postretirement benefits $90,000 120,000 210,000 Unfunded Compute the company's cash outlays during the year for payroll-related costs. Assume that short-term obligations such as insurance premiums and payroll taxes have been paid. $2,750,000

Answer 1

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Net cash outlay for Company	Amount $
Gross Wages and Salaries	2,250,000.00
Amount withheld	(320,000.00)
Payroll tax expense	208,000.00
Worker's compensation premium	130,000.00
Group health insurance premium	252,000.00
Contribution to employees pension plan	140,000.00
Other Post retirement benefits	90,000.00
Net cash outlay for Company	2,750,000.00
Option A