Electronics Service Co. pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1: Administrative salaries Sales salaries Office salaries $96,000 57,000 38,000 Assume the Social Security tax rate is 6 percent on the first $130,000 of salaries. Duke reached the $130,000 amount in December. His salary is $11,500 per month and is included in the $96,000. No one else will reach the $130,000 amount for the year. None of the employee salaries are subject to unemployment tax in December. Other amounts withheld from salaries in December were as follows: Federal income tax State income tax $21, 500 11,200 4,000 Employee savings plan Required a. Determine the net pay for employee salary expenses on December 31, Year 1. Net pay b. Determine the amount of payroll tax expense for Electronics Service Co. for December, Year 1. Payroll tax expense

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Find the net pay and payroll toll expense, please  :) 

 

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Electronics Service Co. pays salaries monthly on the last day of the month. The following information is available from Electronics for
the month ended December 31, Year 1:
Administrative salaries
Sales salaries
$96,000
57,000
38,000
Office salaries
Assume the Social Security tax rate is 6 percent on the first $130,000 of salaries. Duke reached the $130,000 amount in December. His
salary is $11,500 per month and is included in the $96,000. No one else will reach the $130,000 amount for the year. None of the
employee salaries are subject to unemployment tax in December. Other amounts withheld from salaries in December were as follows:
Federal income tax
$21,500
11, 200
4,000
State income tax
Employee savings plan
Required
a. Determine the net pay for employee salary expenses on December 31, Year 1.
Net pay
b. Determine the amount of payroll tax expense for Electronics Service Co. for December, Year 1.
Payroll tax expense
Transcribed Image Text:Electronics Service Co. pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1: Administrative salaries Sales salaries $96,000 57,000 38,000 Office salaries Assume the Social Security tax rate is 6 percent on the first $130,000 of salaries. Duke reached the $130,000 amount in December. His salary is $11,500 per month and is included in the $96,000. No one else will reach the $130,000 amount for the year. None of the employee salaries are subject to unemployment tax in December. Other amounts withheld from salaries in December were as follows: Federal income tax $21,500 11, 200 4,000 State income tax Employee savings plan Required a. Determine the net pay for employee salary expenses on December 31, Year 1. Net pay b. Determine the amount of payroll tax expense for Electronics Service Co. for December, Year 1. Payroll tax expense
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