Diego's Mexican Restaurant incurred salaries expense of $58,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,100), life insurance (cost to the company, $310), and retirement benefits (cost to the company, 6% of salaries expense). Requirements: 1. Journalize Diego's expenses for employee benefits and for payroll taxes. Explanations are not required. ( I'm stuck on the last two numbers) 2. What was Diego's total expense for 2018 related to payroll?
Diego's Mexican Restaurant incurred salaries expense of $58,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,100), life insurance (cost to the company, $310), and retirement benefits (cost to the company, 6% of salaries expense). Requirements: 1. Journalize Diego's expenses for employee benefits and for payroll taxes. Explanations are not required. ( I'm stuck on the last two numbers) 2. What was Diego's total expense for 2018 related to payroll?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Diego's Mexican Restaurant incurred salaries expense of
$58,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax.
Also, the company provides the following benefits for employees: health insurance (cost to the company,
$2,100), life insurance (cost to the company, $310), and retirement benefits (cost to the company, 6% of salaries expense).
Requirements:
1. Journalize Diego's expenses for employee benefits and for payroll taxes. Explanations are not required. ( I'm stuck on the last two numbers)
2. What was Diego's total expense for 2018 related to payroll?
Finished work:
First Account Box:
FICA tax payable = 58000 * 6.2% = 3596
FICA - medicare taxes payable = 58000 * 1.45% = 841
Federal unemployment taxes = 23000 * 0.6% = 138
State unemployment taxes = 23000 * 5.4% = 1242
Payroll tax expenses = 3596 + 841 + 138 + 1242 = 5817
Second Account box:
$2,100), life insurance (cost to the company, $310), and retirement benefits (cost to the company, 6% of salary expense).
******[benefits for employees = 2100 + 310 + ( 58000 * 6% ) = 5611]*******( I got this number and it seems to be incoorect.
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