EB 15. LO 12.5 An employee and employer cost-share 401(k) plan contributions, health insurance premium payments, and charitable donations. The employer also provides annual vacation compensation equal to ten days of pay at a rate of $30 per hour, eight-hour work day. The employee makes a gross wage of $3,000 monthly. The employee decides to use five days of vacation during the current pay period. Employees cover 30% of the 401(k) plan contribution and 30% of the health insurance premium. The employee also donates 1% of gross pay to a charitable organization. A. What would be the employee's total benefits responsibility if the total 401(k) contribution is $700 and the health insurance premium is $260? B. Include the journal entry representing the payroll benefits accumulation for the employer in the month of March, if the employer matches the employee's charitable donation of 1%.

EB 15. LO 12.5 An employee and employer cost-share 401(k) plan contributions, health insurance premium payments, and charitable donations. The employer also provides annual vacation compensation equal to ten days of pay at a rate of $30 per hour, eight-hour work day. The employee makes a gross wage of $3,000 monthly. The employee decides to use five days of vacation during the current pay period. Employees cover 30% of the 401(k) plan contribution and 30% of the health insurance premium. The employee also donates 1% of gross pay to a charitable organization. A. What would be the employee's total benefits responsibility if the total 401(k) contribution is $700 and the health insurance premium is $260? B. Include the journal entry representing the payroll benefits accumulation for the employer in the month of March, if the employer matches the employee's charitable donation of 1%.

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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1. Suppose a business wants to provide $2000 a month per employee for indemnity health insurance. All employees of the firm pay 25% of their wages in income taxes. Under current Internal Review Service (IRS) rules, how much tax will each employee have to pay for this insurance coverage? 1500 500 -500 -1500
9. How much is the annual retirement benefit expense for the year ended December 31, 2021?
Problem 6-16 The Nanny Tax (LO 6.6) Sally hires a maid to work in her home for $400 per month. The maid is 25 years old and not related to Sally. During 2022, the maid worked ten months for Sally. Do not round immediate computations and round your final answers to two decimal places. a. What is the employer's share of Social Security tax Sally must pay? b. What is the employer's share of Medicare tax Sally must pay? Sally's employer's Medicare tax: $ c. What is the amount of Social Security and Medicare tax which must be withheld from the maid's wages? Sally should withhold for Social Security and Medicare tax of:
Note:hand written solution should be avoided.
6. What amount should be recorded as pension liability on December 31, 2021? ₱ 45,000 ₱ -0- ₱ 20,000 ₱ 25,000
QUESTION 3 Bacon Bad is a national diner that has set up a defined benefit pension plan for its employees. The company uses IFRS and has provided you with the following information pertaining to its pension plan: Pension obligation, December 31,2021 - $6854203 Plan assets, December 31, 2021 - $5906519 Interest rate on pension obligations - 3% Current service cost for the year (accrued at the end of the year) - $598059 Improvement in pension plan, effective on January 1, 2022 - $62000 Actuarial gain on change in assumptions - $0 Expected retum on plan assets -3% of plan assets Actual return on plan assets - $271186 Amounts remitted by employer to pension trust on January 1,2022 - $668416 Payments we do not need payment to retiree
EA14 Toren Inc. employs one person to run its solar management company. The employee’s gross income for the month of May is $6,000. Payroll for the month of May is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $400, state income tax of $75, health-care insurance premium of $200, and union dues of $50. The employee is responsible for covering 30% of his or her health insurance premium. Record the journal entry to recognize employee payroll for the month of May, dated May 31, 2017. Record remittance of the employee’s salary with cash on June 1.
What is the Health Savings Arrangement (HSA) catch-up contribution limit for an employee who is 58 years old and married? O $3,600 O $1,000 O $7,200 O $1,050
Determine the labor burden for an employee given the information in Table below. Assume the employee takes full advantage of the 401k benefit. Employer provides health insurance $100 a month, and employee doesn't pay for health insurance. Cost $85,000 None Item Wages Bonus Allowances Medicare Social Security FUTA None 1.45% of wages SUTA Workers' Comp. General Liability 401(k) Health Insurance 6.2% of wages to $128,700 0.6% of wages to $7,000 |2.0% of wages to $20,000 $0.85 per $100 of wages 0.65% of wages 50% match up to 6% of wages |$200/month
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