Axel's Mexican Restaurant incurred salaries expense of $61,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $21,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,300), life insurance (cost to the company, $370), and retirement benefits (cost to the company, 8% of salaries expense). More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned per employee; Medicare: 1.45%, FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee. Requirements 4 1. Journalize Axel's expenses for employee benefits and for payroll taxes. Explanations are not required. 2. What was Axel's total expense for 2024 related to payroll? Print Done X

Axel's Mexican Restaurant incurred salaries expense of $61,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $21,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,300), life insurance (cost to the company, $370), and retirement benefits (cost to the company, 8% of salaries expense). More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned per employee; Medicare: 1.45%, FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee. Requirements 4 1. Journalize Axel's expenses for employee benefits and for payroll taxes. Explanations are not required. 2. What was Axel's total expense for 2024 related to payroll? Print Done X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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