Question
In: Accounting
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2...
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2 weeks', nonvesting sick leave per annum. Past experience suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year. The rest of the employees take no sick leave.
Required: a) Calculate the expected annual sick-leave expense for Dainty Ltd (on the basis of average salaries).
b) Provide the journal entry necessary to recognise the sick-leave entitlement expense as it accrues each week.
c) In the current week an employee with a weekly salary of $600 has been off sick for the first time this year. The employee took 2 days off out of her normal 5-day working week. Assuming that PAYG tax is deducted at 30%, what would the entry be to record the employee's weekly salary (round amounts to the nearest dollar)?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Melbourne Pty Ltd has an average weekly payroll of $600,000. The
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The sick leave entitlements are classified as non-vesting. Past
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M & D Contractors has numerous employees who are paid on a
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Total Employee
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FICA social security tax
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State unemployment tax rate 5.4%
Federal income tax rate 15.0%
Of the total employee compensation, $136,000 is subject to the
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Using the timecards below, calculate the number of hours paid at
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PAULEY,...
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Because August is their vacation period, vacation pay is also
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Employee
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Weekly
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$5,200
$240
-
Karen Robbins
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290
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Ken Sprouse
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370
740
Assume that the federal income tax withheld is 10%...
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