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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Find the net pay and payroll toll expense, please :)
label the final answers for me, if you can.
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