Concept: Salaries and Tax deductions: Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred. Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees. Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30% Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%. Payroll Tax Expense under situations (a), (b) and (c)

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Answer 1

Question

Chapter 11, Problem 5E

To determine

Concept:

Salaries and Tax deductions:

Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.
Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Payroll Tax Expense under situations (a), (b) and (c)

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Answer 2

Question

Chapter 11, Problem 5E

To determine

Concept:

Salaries and Tax deductions:

Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.
Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Payroll Tax Expense under situations (a), (b) and (c)

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Answer 3

Question

Chapter 11, Problem 5E

To determine

Concept:

Salaries and Tax deductions:

Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.
Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Payroll Tax Expense under situations (a), (b) and (c)

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Answer 4

Question

Chapter 11, Problem 5E

To determine

Concept:

Salaries and Tax deductions:

Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.
Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Payroll Tax Expense under situations (a), (b) and (c)

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Answer 5

Chapter 11, Problem 5E

To determine

Concept:

Salaries and Tax deductions:

Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.
Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Payroll Tax Expense under situations (a), (b) and (c)

Answer 6

Chapter 11, Problem 5E

To determine

Concept:

Salaries and Tax deductions:

Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.
Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Payroll Tax Expense under situations (a), (b) and (c)

Answer 7

Chapter 11, Problem 5E

To determine

Concept:

Salaries and Tax deductions:

Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.
Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Payroll Tax Expense under situations (a), (b) and (c)

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ Ch. 11 - Prob. 6DQ Ch. 11 - Prob. 7DQ Ch. 11 - Prob. 8DQ Ch. 11 - Prob. 9DQ Ch. 11 - Prob. 10DQ

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