LO 12.5 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.
5. LO 12.5 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.
A. Record the
B. Record remittance of the employee's salary with cash on June 1. You have now been given the following additional information: May is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee, FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 70% of the health insurance premium Using the information from above and the additional information provided:
C. Record the employer payroll for the month of May, dated May 31, 2017
D. Record the payment in cash of all employer liabilities only on June 1
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