During one pay period, your company distributes $130,500 to employees as net pay. The income tax...

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During one pay period, your company distributes $130,500 to employees as net pay. The income tax withholdings were $19,000 an

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Answer 1

Answer #1

Given:
$130,500 net pay to employees
$19,000 income tax withholding
$8919 FICA withholding
The total wages and payroll tax expense to the company for this pay period, excluding any unemployment taxes, is $167,338
($130,500 + $19,000 + $8919 + $8919 = $167,338)

The $8919 is added twice because the first $8919 is withheld from the employees salary as the employees share. The employer also has to pay off $8919 as employer's share to the employee's FICA withholding. Thus, the presence of the 2nd $8919.

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Answer 2

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