Recording employer payroll taxes and employee benefits Ricardo’s Mexican Restaurant incurred salaries expense of $62,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $22,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (the cost to the company, $3,000), life insurance (the cost to the company, $330), and retirement benefits (the cost to the company, 10% of salaries expense). Requirements Journalize Ricardo’s expenses for employee benefits and for payroll taxes. Explanations are not required. What was Ricardo’s total expense for 2018 related to payroll?
Recording employer payroll taxes and employee benefits Ricardo’s Mexican Restaurant incurred salaries expense of $62,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $22,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (the cost to the company, $3,000), life insurance (the cost to the company, $330), and retirement benefits (the cost to the company, 10% of salaries expense). Requirements Journalize Ricardo’s expenses for employee benefits and for payroll taxes. Explanations are not required. What was Ricardo’s total expense for 2018 related to payroll?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Recording employer payroll taxes and employee benefits
Ricardo’s Mexican Restaurant incurred salaries expense of $62,000 for 2018. The payroll expense includes employer FICA tax, in addition to state
Requirements
- Journalize Ricardo’s expenses for employee benefits and for payroll taxes. Explanations are not required.
- What was Ricardo’s total expense for 2018 related to payroll?
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