An employer uses a career average formula to determine retirement payments to its employees. The annual retirement payout is 8 percent of the employees’ career average salary times the number of years of service. Calculate the annual benefit payment under the following scenarios. Years Worked Career Average Salary 27 $ 68,000 30 70,500 32 72,000
Q: I earn a salary from the company of $132,000 per year and the rest of our employees earn less than…
A: Solution:- Given, Salary = $132,000/year other employees earn = $45,000 each
Q: DSD Corp. has the following salary information for 3 employees: Employee Years Worked Avg. Salary…
A: Salary refers to the amount of compensation or remuneration provided to the workers of the…
Q: An employee earned $61,700 during the year working for an employer. The FICA tax rate for Social…
A: The employee has earned $ 61700 during the year
Q: DSD Corp. has the following salary information for an employee: Employee Years Worked Average…
A: Number of years worked = 28 Annual benefit = $7,000
Q: An employee had the following details of compensation income in 2021: Regular compensation income…
A: All sorts of compensation, either in the form of wages and services, along with property, are…
Q: Because an employee works 46 hours in a regular week of 40, with an hourly salary of $10 and…
A: Since the question isn't clear till what time frame we have to fill the table, we will fill it…
Q: Joshua Company has a define contribution plan that covers its existing employees. The terms of the…
A: A Defined Contribution Plan is a retirement plan in which employees allocate part of their salary…
Q: Blount Company provides its employees with vacation benefits and a defined contribution pension…
A: From the perspective of the Blount company Vacation pay is an expense and therefore it is debited…
Q: Harvey Company provides its employees vacation benefits and a defined contribution pension plan.…
A:
Q: Supermercado Caridad offers its employees vacation benefits and contributes a 2% contribution to a…
A: (i) Employer contribution for the 401k = $125,000 x 2% = $2,500 (ii) Entries related to vacation…
Q: Use the table to calculate the total retirement savings of each employee based on the following…
A: FV is the future worth of cash flows that have occurred in the past or present.
Q: Employees in 2020 pay 6.2% of their gross wages towards social security (FICA tax), while employers…
A: Federal Insurance Contributions Act tax is a payroll tax that covers both the salaried and…
Q: An employer uses a final pay formula to determine retirement payouts to its employees. The annual…
A: 1) Average salary (S) = $54000 Years worked (y) = 17
Q: An employee earned $44,800 during the year working for an employer when the maximum limit for Social…
A: Formula: FICA tax amount = Social security tax + Medicare tax amount
Q: The following relate to the compensation income of a private rank andfile employee during the year:…
A: De minimis benefits are those benefits which are provided to the employees for some small amounts of…
Q: An employee earns $22 per hour and 2 times that rate for all hours in excess of 40 hours per week.…
A:
Q: An employee earns $32 per hour and 1.75 times that rate for all hours in excess of 40 hours per…
A: Gross pay: It is an income calculated by multiplying the total hours worked with the basic hourly…
Q: Martin Services Company provides its employees vacation benefits and a defined contribution pension…
A:
Q: iving a monthly salary of P21,000 with mandatory annual deductions of P15,166, which includes SSS,…
A: The difference between income exempt from tax and non taxable income is that income exempt from tax…
Q: DealsToday offers its employees a defined contribution plan. The company matches employee…
A: The defined contribution plan is refer to as where the employee contribute to the pension fund and…
Q: An employee earned $45,400 during the year working for an employer when the maximum limit for Social…
A: The FICA tax amount is the sum of 6.2% social security tax and 1.45% Medicare tax on the employee…
Q: An employee receives an hourly rate of $25.00, with time and a half for all hours worked in excess…
A: Given the following information: An employee receives an hourly rate of $25.00 with time and a half…
Q: An employee receives an hourly rate of $17, with time and a half for all hours worked in excess of…
A: Gross pay = ($17 x 40 hours+ $17*1.5 x 9 hours) = $909.50
Q: G. E. Spring employs Trent Pelligrini at a salary of $46,200 a year. Spring is subject to employer…
A: Salary: Its an amount paid to the employee for rendering their services to the company. salary can…
Q: Given the following information, determine the burdened hourly wage rate for an equipment operator.…
A: Solution: Hourly wage rate burdened =Wages + BenefitsBillable hours Now, Using the equation…
Q: You are employed as an accountant. Your company’s retirement plan states that, upon retirement, an…
A: Pension Plan The purpose of creating the pension fund is to get some benefit to the employees after…
Q: 62. How much is the total EXCLUSIONS FROM GROSS INCOME?
A: As per our protocol and guidelines we provide solution to the one question only but you have asked…
Q: Total Cost of Empleyee R.D. Kagen employs Audrey Lopez at a salary of $33,800 a year. Kagen is…
A: Payroll: It can be defined as the total payment made by an employer to its employee.
Q: An employee receives an hourly wage rate of $18, with time and a half for all hours worked in excess…
A: An employee who works on an hourly basis is paid the wages at the hourly rate determined by the…
Q: An employee in Manitoba earns a semi-monthly salary of $3,500 and has an outstanding employer loan…
A: Pay period is the time given to do the payment.CPP stands for "Current Purchasing Power". This…
Q: An employee earns $22 per hour and 2 times that rate for all hours in excess of 40 hours per week.…
A: Gross pay: Gross pay is a payment made to an employee for completion of work allocated by the…
Q: Fukushima Company provides its employees with vacation benefits and a defined contribution pension…
A: a) Prepare journal entry to record vacation pay expense.
Q: Your employer uses a final pay benefit formula to determine retirement payments to its employees.…
A: Pension Amount - It is the amount paid by the employer to its employee upon retirement of the the…
Q: You interviewed for a job that pays $68,500 annually. You pay 6% to Social Security, 1.7% to…
A: Formula: Salary after taxes = Gross salary - taxes
Q: first week’s deductions for Social Security and Medicare? Will any of Pat’s wages be exempt from
A: A tax deduction is defined as an item that would be deducted from the taxable income so that the…
Q: According to PAS 19, short-term employee benefits are recognized a. at each year-end b. at each…
A: Short term benefits: Benefits are to be cleared with in a year less than 12 months period called as…
Q: If an employee has received over one million dollars in supplemental earnings for the year, any…
A: Federal income tax withholding: The amounts which the employer withheld from employees’ gross pay…
Q: DSD Corp. has the following salary information for 3 employees: Employee Years Worked Avg. Salary…
A: Pension is a part of defined contribution plan in which the employer promises to pay the retiring…
Q: In this chapter, we learned that FICA mandates that employers deduct taxes from employees' pay each…
A: Since the year for the calculation of taxes is not given it is taken as Year 2022.
Q: Joshua Company has a define contribution plan that covers its existing employees. The terms of the…
A: The company also contributes to the defined benefit plan and these costs are recorded as benefit…
Q: Your employer contributes 50 a week to your retirement plan. Assume that you work for your employer…
A: Weekly contribution (C) = 50 Weekly discount rate (r) = 0.00125 (i.e. 0.065 / 52) Weekly period of…
Q: An employee receives an hourly wage rate of $16, with time and a half for all hours worked in excess…
A: Gross pay= Hours worked during week * wage rate + extra hours worked* Higher wage rate…
Q: If an employee X has CNA =₱18,291.09, 13th month pay = ₱27,891.00, other benefits = ₱10,000, and…
A: Taxable income is the part of an individual’s income which is used to calculate how much tax a…
Q: Determine whether the spending pattern described is at, above, or below the national average. Assume…
A: On an average a couple above 65 spend $2958 annually or $246.50 monthly on entertainment.
Q: Addidas Co. pays $190 per month for Jay's insurance, $22 per month for his disability insurance, and…
A: Journal entries are the entries to be recorded in the accounting books of the business for all the…
An employer uses a career average formula to determine retirement payments to its employees. The annual retirement payout is 8 percent of the employees’ career average salary times the number of years of service. Calculate the annual benefit payment under the following scenarios.
Years Worked | Career Average Salary |
---|---|
27 | $ 68,000 |
30 | 70,500 |
32 | 72,000 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- An employee and employer cost-share pension plan contributions and health insurance premium payments. If the employee covers 35% of the pension plan contribution and 25% of the health insurance premium, what would be the employees total benefits responsibility if the total pension contribution was $900, and the health insurance premium was $375? Include the journal entry representing the payroll benefits accumulation for the employer in the month of February.An employer uses a final pay formula to determine retirement payouts to its employees. The annual payout is 5 percent of the average salary over the employees’ last three years of service times the total years employed. Calculate the annual benefit under the following scenarios. Years Worked Average Salary during the Last Three Years of Service 17 $ 54,000 20 $ 61,000 22 $ 64,000Q1. Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund pays an annual benefit of $2,500 per year of service. Calculate your annual benefit payment for 25, 28 and 30 years of service.
- Claude Lopez is the president of Zebra Antiques. His employee, Dwight Francis, is due a raise. Dwight's current benefit analysis is as follows: Yearly Benefit Costs Medical insurance Dental insurance Life insurance AD&D Short-term disability Long-term disability 401(k) Social Security Medicare Tuition reimbursement Total yearly benefit costs (employer) Employee's annual salary. The Total value of employee's compensation Required: Compute the benefit analysis assuming: Company Cost (Current) $ 8,000.00 120.00 300.00 150.00 60.00 30.00 750.00 3,018.16 705.86 $ 2,000.00 $ 15,134.02 50,000.00 $ 65,134.02 Employee Cost (Current) $ 1,200.00 120.00 0 0 0 0 1,500.00 3,018.16 705.86 0 • 3 percent increase in pay. • Dwight will increase his 401(k) contribution to 8 percent with a company match of 50 percent up to 6 percent of the employee's annual salary. • 15 percent increase in medical and dental insurance premiums. (Round your answers to 2 decimal places.)6., RST Company offers a qualified retirement plan. Each employee contributes 4 percent of his or her pretax income to the plan, and RST matches each employee's contribution. An employee's benefit at retirement is determined by his or her account balance at the time of retirement. What type of retirement plan does RST offer? a. Defined contribution plan. b. Defined benefit, flat percentage of annual earnings c. Defined benefit, unit-credit formula. d. Defined benefit, flat dollar amount for all employeesUse the table to calculate the total retirement savings of each employee based on the following instructions. - In column D write an IF function that uses the contribution guidelines noted in the general information section (customers over 30 years of age and up = 7% all others 5%) and customer age (column B) to calculate each monthly contribution value in column D. Format the results using accounting number format. - In column E Calculate the total savings at retirement based on the quarterly percentage rate (QPR) of 1.25% and the precalculated monthly contributions based on the prior step. Format the results using accounting number format.
- Claude Lopez is the president of Zebra Antiques. His employee, Dwight Francis, is due a raise. Dwight's current benefit analysis is as follows: Yearly Benefit Costs Medical insurance Dental insurance Life insurance AD&D Short-term disability Long-term disability 401(k) Social Security Medicare Tuition reimbursement Total yearly benefit costs (employer) Employee's annual salary The total value of employee's compensation Required: Compute the benefit analysis assuming: Company Cost (Current) $ 6,400.00 145.00 228.00 114.00 45.60 22.80 1,140.00 2,287.49 534.98 2,250.00 $ 13,167.87 38,000.00 $ 51,167.87 Employee Cost (Current) $ 960.00 145.00 0 0 0 0 2,280.00 2,287.49 534.98 0 3 percent increase in pay. • Dwight will increase his 401(k) contribution to 8 percent with a company match of 50 percent up to 6 percent of the employee's annual salary. • 15 percent increase in medical and dental insurance premiums.Your employer uses a final pay benefit formula to determine retirement payments to its employees. The employee receives an annual benefit of 3% of her average salary during her last 5 years of service times her total years employed. If she has 25 years of total service and her average salary over her last 5 years was $75,000, calculate her annual retirement benefit.DSD Corp. has the following salary information for an employee: Employee Years Worked Average Salary last 3 years of service Career average salary Sheila 28 $326,000 $131,000 If relevant, the annual payout is 9 percent, and the annual benefit is $7,000 per year of service, calculate the annual benefit for Sheila assuming the Flat Benefit Formula is used. (Do not round intermediate calculations. Round your answer to a whole number.)
- Find the amount of Social Security and Medicare for the current pay period Of the employee. G. Falk has a current gross earning of $952.41 oh, and he has a year-to-date earning of $109,504.33.Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P10,000,000 P670,000 2022 12,200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31.2022? O P430.000 and P180,000 accrued O P610,000 and P180,000 accrued O P430,000 and P10,000 prepaid O P610.000 and P10.000 prepaidJoshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P10,000,000 P670,000 2022 12,200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31, 2022?