Computing Payroll Costs; Discussion of Labor Costs
Oaks Company has completed the payroll for January 2012, reflecting the following data:
Salaries and wages earned | $86,000 |
Employee income taxes withheld | 10,000 |
FICA payroll taxes* | 6,000 |
* Assessed on both employer and employee (i.e., $6,000 each).
Required:
1. What amount of additional labor expense to the company was due to tax laws? What was the amount of the employees" take-home pay?
2. List the liabilities and their amounts reported on the company's January 31, 2012, balance sheet, assuming the employees have been paid.
3. Would employers react differently to a 10 percent increase in the employer's share of FICA than to a 10 percent increase in the basic level of salaries? Would financial analysts react differently?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.