Electronics Service Company pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1: Administrative salaries $ 96,000 Sales salaries 57,000 Office salaries 38,000 Assume the Social Security tax rate is 6 percent on the first $130,000 of salaries. Duke reached the $130,000 amount in December. His salary is $11,500 per month and is included in the $96,000. No one else will reach the $130,000 amount for the year. None of the employee salaries are subject to unemployment tax in December. Other amounts withheld from salaries in December were as follows: Federal income tax $ 21,500 State income tax 11,200 Employee savings plan 4,000 Required Determine the net pay for employee salary expenses on December 31, Year 1. Determine the amount of payroll tax expense for Electronics Service Company for December, Year 1.
Electronics Service Company pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1: Administrative salaries $ 96,000 Sales salaries 57,000 Office salaries 38,000 Assume the Social Security tax rate is 6 percent on the first $130,000 of salaries. Duke reached the $130,000 amount in December. His salary is $11,500 per month and is included in the $96,000. No one else will reach the $130,000 amount for the year. None of the employee salaries are subject to unemployment tax in December. Other amounts withheld from salaries in December were as follows: Federal income tax $ 21,500 State income tax 11,200 Employee savings plan 4,000 Required Determine the net pay for employee salary expenses on December 31, Year 1. Determine the amount of payroll tax expense for Electronics Service Company for December, Year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Electronics Service Company pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1:
| Administrative salaries | $ 96,000 |
|---|---|
| Sales salaries | 57,000 |
| Office salaries | 38,000 |
Assume the Social Security tax rate is 6 percent on the first $130,000 of salaries. Duke reached the $130,000 amount in December. His salary is $11,500 per month and is included in the $96,000. No one else will reach the $130,000 amount for the year. None of the employee salaries are subject to
| Federal income tax | $ 21,500 |
|---|---|
| State income tax | 11,200 |
| Employee savings plan | 4,000 |
Required
-
Determine the net pay for employee salary expenses on December 31, Year 1.
-
Determine the amount of payroll tax expense for Electronics Service Company for December, Year 1.
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