Payroll Accounting and Discussion of Labor Costs Blitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll: Item Amount Monthly salaries $237,480 Hourly wages 585,000 FICA: Social Security (both employee and employer) 6.20% Medicare (both employee and employer) 1.45% Withholding for federal income taxes $108,500 Federal unemployment taxes 1,200 State unemployment taxes 4,000 Blitzen will pay both the employer's taxes and the taxes withheld on April 15. Required: 1. Prepare the journal entries to record the payroll payment and the incurrence of the associated expenses and liabilities. If an amount box does not require an entry, leave it blank. When required, round your answers to two decimal places. Jan. 31 - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - (Record salaries, wages, and liabilities) Jan. 31 - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - (Record employer payroll taxes) 2. What is the employees' gross pay? $fill in the blank fd493200affbff6_1 What amount does Blitzen pay in excess of gross pay as a result of taxes? (Note: Provide both an absolute dollar amount and as a percentage of gross pay, rounding to two decimal places.) $fill in the blank fd493200affbff6_2 This is fill in the blank fd493200affbff6_3 % of gross pay. 3. How much is the employees' net pay as a percentage of total payroll related expenses? Round your answers to two decimal places. fill in the blank fa4a120ca028f80_1 % 4. Conceptual Connection: If another employee can be hired for $60,000 per year, what would be the total cost of this employee to Blitzen? Do not round intermediate calculations and round your final answer to two decimal places. $fill in the blank 9895acfc501bf85_1
Payroll Accounting and Discussion of Labor Costs
Blitzen
| Item | Amount |
| Monthly salaries | $237,480 |
| Hourly wages | 585,000 |
| FICA: | |
| Social Security (both employee and employer) | 6.20% |
| Medicare (both employee and employer) | 1.45% |
| Withholding for federal income taxes | $108,500 |
| Federal |
1,200 |
| State unemployment taxes | 4,000 |
Blitzen will pay both the employer's taxes and the taxes withheld on April 15.
Required:
1. Prepare the
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2. What is the employees' gross pay?
$fill in the blank fd493200affbff6_1
What amount does Blitzen pay in excess of gross pay as a result of taxes? (Note: Provide both an absolute dollar amount and as a percentage of gross pay, rounding to two decimal places.)
$fill in the blank fd493200affbff6_2
This is fill in the blank fd493200affbff6_3 % of gross pay.
3. How much is the employees' net pay as a percentage of total payroll related expenses? Round your answers to two decimal places.
fill in the blank fa4a120ca028f80_1 %
4. Conceptual Connection: If another employee can be hired for $60,000 per year, what would be the total cost of this employee to Blitzen? Do not round intermediate calculations and round your final answer to two decimal places.
$fill in the blank 9895acfc501bf85_1
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If another employee can be hired for $60,000 per year, what would be the total cost of this employee to Blitzen? Do not round intermediate calculations and round your final answer to two decimal places.
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