Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the company’s annual payroll-related costs. Wages and salaries expense (of which $2,200,000 was withheld from employees’ pay and forwarded directly to tax authorities) $ 6,720,000 Payroll taxes 580,000 Workers’ compensation premiums 250,000 Group health insurance premiums 725,000 Contributions to employees’ pension plan 450,000 a. Compute Big Game’s total payroll-related costs for the year. b. Compute the net amount of cash actually paid to employees (their take-home pay). c-1. Express total payroll-related costs as a percentage of total wages and salaries expense. c-2. Express total payroll-related costs as a percentage of employees' take-home pay.
Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the company’s annual payroll-related costs. Wages and salaries expense (of which $2,200,000 was withheld from employees’ pay and forwarded directly to tax authorities) $ 6,720,000 Payroll taxes 580,000 Workers’ compensation premiums 250,000 Group health insurance premiums 725,000 Contributions to employees’ pension plan 450,000 a. Compute Big Game’s total payroll-related costs for the year. b. Compute the net amount of cash actually paid to employees (their take-home pay). c-1. Express total payroll-related costs as a percentage of total wages and salaries expense. c-2. Express total payroll-related costs as a percentage of employees' take-home pay.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the company’s annual payroll-related costs.
| Wages and salaries expense (of which $2,200,000 was withheld from employees’ pay and forwarded directly to tax authorities) | $ | 6,720,000 | |
| Payroll taxes | 580,000 | ||
| Workers’ compensation premiums | 250,000 | ||
| Group health insurance premiums | 725,000 | ||
| Contributions to employees’ pension plan | 450,000 | ||
a. Compute Big Game’s total payroll-related costs for the year.
b. Compute the net amount of cash actually paid to employees (their take-home pay).
c-1. Express total payroll-related costs as a percentage of total wages and salaries expense.
c-2. Express total payroll-related costs as a percentage of employees' take-home pay.
(Round your percentage answers to the nearest whole percent.)
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