Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay period show that employees earned wages totaling $55,000 but that employee income taxes totaling $7,500 and FICA taxes totaling $2,875 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Required: What was the amount of net pay? Assuming Lightning Electronics also must pay $300 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs?
Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay period show that employees earned wages totaling $55,000 but that employee income taxes totaling $7,500 and FICA taxes totaling $2,875 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Required: What was the amount of net pay? Assuming Lightning Electronics also must pay $300 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs?
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 2A: Between the end of one month and the 15th day of the next month, the balance in the employers...
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Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay period show that employees earned wages totaling $55,000 but that employee income taxes totaling $7,500 and FICA taxes totaling $2,875 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts.
Required:
-
What was the amount of net pay?
-
Assuming Lightning Electronics also must pay $300 of
unemployment taxes for this pay period, what amount would be reported as the total payroll costs?
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