Required informationExercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3)[The following information applies to the questions displayed below.]Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20an hour. Although the company does not pay any health or retirement benefits, one of theperks of working at Aspen is that employees are allowed free skiing on their days off.Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxesare 6.2% of the first $7,000 earned per employee.Exercise 8-7A Part 1Required:1. Compute the total salary expense, the total withholdings from employee salaries, and the actual directdeposit of payroll for the first week of January.Answer is complete but not entirely correct.Total salary expenseTotal withholdingsActual direct deposit$$96,000 X26,544 X69,456 !Required informationExercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3)[The following information applies to the questions displayed below.]Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20an hour. Although the company does not pay any health or retirement benefits, one of theperks of working at Aspen is that employees are allowed free skiing on their days off.Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxesare 6.2% of the first $7,000 earned per employee.Exercise 8-7A Part 22. Compute the total payroll tax expense Aspen Ski Resorts will pay for the first week of January in addition tothe total salary expense and employee withholdings calculated in Part 1.> Answer is complete but not entirely correct.Total payroll tax expense$ 12,465 X

Answer:- Tax Deduction:- Tax deduction is basically levied on the income of the individual or…

Required information Exercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3) [The following information applies to the questions displayed below.] Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. Exercise 8-7A Part 1 Required: 1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct deposit of payroll for the first week of January. Answer is complete but not entirely correct. Total salary expense Total withholdings Actual direct deposit $ 96,000 26,544 X $ 69,456

Required information Exercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3) [The following information applies to the questions displayed below.] Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. Exercise 8-7A Part 1 Required: 1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct deposit of payroll for the first week of January. Answer is complete but not entirely correct. Total salary expense Total withholdings Actual direct deposit $ 96,000 26,544 X $ 69,456

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 14E

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Rand Company’s payroll on December 31 of the current year is as follows: • total payroll, $500,000 • payroll in excess of $128,400 to each employee, $350,000 • payroll in excess of $7,000 to each employee, $400,000 • income taxes withheld, $85,000 • union dues withheld, $10,000 • tax rates: state unemployment tax, 5.4%; FICA tax, 8% for employees and 8% for employers for any amounts over $117,000; federal unemployment tax, 0.6% Required: Prepare the journal entries for Rand’s payroll and payroll taxes.
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