Question. 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 $96,000 Sales salaries 57,000 Office salaries 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 $21,500 State income tax 11,200 Employee savings plan 4,000 Required a. Determine the net pay for employee salary expenses on December 31, Year 1. b. Determine the amount of payroll tax expense for Electronics Service Co. for December, Year 1.

Question. 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 $96,000 Sales salaries 57,000 Office salaries 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 $21,500 State income tax 11,200 Employee savings plan 4,000 Required a. Determine the net pay for employee salary expenses on December 31, Year 1. b. Determine the amount of payroll tax expense for Electronics Service Co. for December, Year 1.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 4E

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