Electronics Service Company pays salaries monthly on the last day of the month. The following information is available fromElectronics for the month ended December 31, Year 1:Administrative salariesSales salariesOffice salariesAssume the Social Security tax rate is 6 percent on the first $130,000 of salaries. Duke reached the $130,000 amount in December. Hissalary is $11,500 per month and is included in the $96,000. No one else will reach the $130,000 amount for the year. None of theemployee salaries are subject to unemployment tax in December. Other amounts withheld from salaries in December were as follows:$ 96,00057,00038,000Federal income taxState income taxEmployee savings planRequireda. Determine the net pay for employee salary expenses on December 31, Year 1.Net payPayroll tax expense$ 21,50011, 2004,000b. Determine the amount of payroll tax expense for Electronics Service Company for December, Year 1.

After deductions from gross pay, net pay is the amount of remuneration that remains distributable to…

Answered: Required a. Determine the net pay for…

Business

Accounting

Required a. Determine the net pay for employee salary expenses on December 31, Year 1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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