Required information Exercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3) [The following information applies to the questions displayed below.] Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. Exercise 8-7A Part 1 Required: 1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct deposit of payroll for the first week of January. Answer is complete but not entirely correct. Total salary expense Total withholdings Actual direct deposit $ 96,000 26,544 X $ 69,456
Required information Exercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3) [The following information applies to the questions displayed below.] Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. Exercise 8-7A Part 1 Required: 1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct deposit of payroll for the first week of January. Answer is complete but not entirely correct. Total salary expense Total withholdings Actual direct deposit $ 96,000 26,544 X $ 69,456
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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![Required information
Exercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3)
[The following information applies to the questions displayed below.]
Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20
an hour. Although the company does not pay any health or retirement benefits, one of the
perks of working at Aspen is that employees are allowed free skiing on their days off.
Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are
7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes
are 6.2% of the first $7,000 earned per employee.
Exercise 8-7A Part 1
Required:
1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct
deposit of payroll for the first week of January.
Answer is complete but not entirely correct.
Total salary expense
Total withholdings
Actual direct deposit
$
$
96,000 X
26,544 X
69,456](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5bf0e6d-ab1a-4cd5-be90-d881ef1ac3d0%2Fcb9d8731-3099-4b5d-b09f-605940379e84%2F4pil1cq_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3)
[The following information applies to the questions displayed below.]
Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20
an hour. Although the company does not pay any health or retirement benefits, one of the
perks of working at Aspen is that employees are allowed free skiing on their days off.
Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are
7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes
are 6.2% of the first $7,000 earned per employee.
Exercise 8-7A Part 1
Required:
1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct
deposit of payroll for the first week of January.
Answer is complete but not entirely correct.
Total salary expense
Total withholdings
Actual direct deposit
$
$
96,000 X
26,544 X
69,456
![!
Required information
Exercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3)
[The following information applies to the questions displayed below.]
Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20
an hour. Although the company does not pay any health or retirement benefits, one of the
perks of working at Aspen is that employees are allowed free skiing on their days off.
Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are
7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes
are 6.2% of the first $7,000 earned per employee.
Exercise 8-7A Part 2
2. Compute the total payroll tax expense Aspen Ski Resorts will pay for the first week of January in addition to
the total salary expense and employee withholdings calculated in Part 1.
> Answer is complete but not entirely correct.
Total payroll tax expense
$ 12,465 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5bf0e6d-ab1a-4cd5-be90-d881ef1ac3d0%2Fcb9d8731-3099-4b5d-b09f-605940379e84%2Fw7000v_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Exercise 8-7A Calculate payroll withholdings and payroll taxes (LO8-3)
[The following information applies to the questions displayed below.]
Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20
an hour. Although the company does not pay any health or retirement benefits, one of the
perks of working at Aspen is that employees are allowed free skiing on their days off.
Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are
7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes
are 6.2% of the first $7,000 earned per employee.
Exercise 8-7A Part 2
2. Compute the total payroll tax expense Aspen Ski Resorts will pay for the first week of January in addition to
the total salary expense and employee withholdings calculated in Part 1.
> Answer is complete but not entirely correct.
Total payroll tax expense
$ 12,465 X
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