Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay period show that employees earned wages totaling $70,000 but that employee income taxes totaling $9,000 and FICA taxes totaling $3,625 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Required: What was the amount of net pay? Assuming Lightning Electronics also must pay $450 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs?
Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay period show that employees earned wages totaling $70,000 but that employee income taxes totaling $9,000 and FICA taxes totaling $3,625 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Required: What was the amount of net pay? Assuming Lightning Electronics also must pay $450 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay period show that employees earned wages totaling $70,000 but that employee income taxes totaling $9,000 and FICA taxes totaling $3,625 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts.
Required:
-
What was the amount of net pay?
-
Assuming Lightning Electronics also must pay $450 of
unemployment taxes for this pay period, what amount would be reported as the total payroll costs?
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