Hal's Heavenly Creations offers its employees the option of contributing up to 6% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below. Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums paid by employer Life insurance premiums paid by employer Federal and state income tax withheld Social Security tax rate Medicare tax rate Federal and state unemployment tax rate Required: 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes. $1,150,000 48,300 24,150 4,600 287,500 6.20% 1.45% 6.20%
Hal's Heavenly Creations offers its employees the option of contributing up to 6% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below. Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums paid by employer Life insurance premiums paid by employer Federal and state income tax withheld Social Security tax rate Medicare tax rate Federal and state unemployment tax rate Required: 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes. $1,150,000 48,300 24,150 4,600 287,500 6.20% 1.45% 6.20%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Am.102.
Transcribed Image Text:Hal's Heavenly Creations offers its employees the option of contributing up to 6% of their salaries to a voluntary retirement plan, with
the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no
employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending
February 14 is listed below.
Wages and salaries
Employee contribution to voluntary retirement plan
Medical insurance premiums paid by employer
Life insurance premiums paid by employer
Federal and state income tax withheld
Social Security tax rate
Medicare tax rate
Federal and state unemployment tax rate
Required:
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.
$1,150,000
48,300
24,150
4,600
287,500
6.20%
1.45%
6.20%
Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
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