The director of the art department at an advertising company, Wilson Watson, wants to hire a new office staff. His boss tells him that to do so he must find in his budget not only the base salary for this position but an additional 30% for “fringe benefits.” Wilson explodes: “How in the world can there be 30% in fringe benefits?” Write a memo to Wilson Watson explaining the costs that probably make up these fringe benefits.

Question
Asked Sep 25, 2019
1 views

The director of the art department at an advertising company, Wilson Watson, wants to hire a new office staff. His boss tells him that to do so he must find in his budget not only the base salary for this position but an additional 30% for “fringe benefits.” Wilson explodes: “How in the world can there be 30% in fringe benefits?” Write a memo to Wilson Watson explaining the costs that probably make up these fringe benefits.

check_circle

Expert Answer

Step 1

Fringe benefits: The fringe benefits are an additional benefit received by an employee other than his/her wages. Life insurance coverage, health insurance, company car, are some examples of fringe benefits.

Step 2

Memo

 

From

ABC

 

To

Person W,

Director of Art Department,

Advertising Company.

 

September 25th, 2019

 

Subject: Costs constituting the Fringe benefits

 

Every employee is required to pay certain percentage of wa...

Government program for
employees
Social security
Percentage
6.2%
Medicare
1.45%
FUTA
0.6%
SUTA
5.4%
Total
13.65%
help_outline

Image Transcriptionclose

Government program for employees Social security Percentage 6.2% Medicare 1.45% FUTA 0.6% SUTA 5.4% Total 13.65%

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct mate...

A: Click to see the answer

question_answer

Q: Guthrie Company receives orders from customers and records revenue at that time, even though it has ...

A: Answer is as follows:In this situation, there is a violation of revenue recognition principle, as pe...

question_answer

Q: Whats P&G's accounting policy related to advertising? whats accounting principle does P&G fo...

A: Procter & Gamble, commonly known as P&G is an Amercian multinational consumers good corporat...

question_answer

Q: Len Gary started his own consulting firm, Gary Consulting, on June 1, 2022. The trial balance at Jun...

A: The adjustment journal entries need to be recorded to give effect to adjustent transactions and then...

question_answer

Q: Which of the following statements is false? a. the common stock account has a credit balance. b. the...

A: Click to see the answer

question_answer

Q: Received $17000 cash investment from the business owners and distributed 1000 shares of common stock...

A: Journal entry is as follows for the given transaction: 

question_answer

Q: Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15000 shares of $25 par value...

A: Dividend:Dividends are the divisible profits of a corporation which are paid to the shareholder for ...

question_answer

Q: On October 1, the company lent $50,000 to a customer. The customer signed a note that required princ...

A: Calculate the interest income during the year:

question_answer

Q: Explain why the ledger can still contain errors even though the trial balance is in balance. Give ex...

A: Click to see the answer