Payroll for Kicker Sound Systems for January was $150,000 and the following withholdings, fringe benefits, and payroll taxes apply: Federal and state income taxes withheld $38,000 Health insurance premiums (Blue Cross) paid by employer 12,000 Contribution to retirement plan (Fidelity) paid by employer 15,000 FICA tax rate (Social Security and Medicare) 7.65% Federal and state unemployment tax rate 3.80% Kicker has paid none of the withholdings or payroll taxes by the end of January and no employee's cumulative wages exceed the relevant wage bases. 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes.
Payroll for Kicker Sound Systems for January was $150,000 and the following withholdings, fringe benefits, and payroll taxes apply: Federal and state income taxes withheld $38,000 Health insurance premiums (Blue Cross) paid by employer 12,000 Contribution to retirement plan (Fidelity) paid by employer 15,000 FICA tax rate (Social Security and Medicare) 7.65% Federal and state unemployment tax rate 3.80% Kicker has paid none of the withholdings or payroll taxes by the end of January and no employee's cumulative wages exceed the relevant wage bases. 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...
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![Payroll for Kicker Sound Systems for January was $150,000 and the following withholdings, fringe
benefits, and payroll taxes apply:
Federal and state income taxes withheld $38,000
Health insurance premiums (Blue Cross) paid by employer 12,000
Contribution to retirement plan (Fidelity) paid by employer 15,000
FICA tax rate (Social Security and Medicare) 7.65%
Federal and state unemployment tax rate 3.80%
Kicker has paid none of the withholdings or payroll taxes by the end of January and no employee's
cumulative wages exceed the relevant wage bases.
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54128468-4f2d-4260-8997-bb4d6478a7d5%2F4bae5049-f5b8-4c9d-8a70-d95ff6441178%2Fq6np4r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Payroll for Kicker Sound Systems for January was $150,000 and the following withholdings, fringe
benefits, and payroll taxes apply:
Federal and state income taxes withheld $38,000
Health insurance premiums (Blue Cross) paid by employer 12,000
Contribution to retirement plan (Fidelity) paid by employer 15,000
FICA tax rate (Social Security and Medicare) 7.65%
Federal and state unemployment tax rate 3.80%
Kicker has paid none of the withholdings or payroll taxes by the end of January and no employee's
cumulative wages exceed the relevant wage bases.
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.
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