An employer's total payroll-related costs always exceed the wages and salaries earned by employees by: Multiple...

An employer's total payroll-related costs always exceed the wages and salaries earned by employees by:

Multiple Choice

Payroll taxes plus mandated programs such as workers' compensation insurance.
50%.
Employers' payroll-related costs actually are less than the gross wages and salaries earned by employees, because of amounts withheld from employees' checks.
Amounts withheld from employees' pay.

Solutions

Expert Solution

An employer's total payroll-related costs always exceed the wages and salaries earned by employees by Payroll taxes plus mandated programs such as workers' compensation insurance.

An employer's total payroll-related costs includes gross salaries and payroll taxes such as employer portion of FICA, FUTA taxes, SUTA taxes, workers' compensation insurance.

Option A is correct

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

XYZ’s 3 employees earned a total of $2,000 of wages forthe week. XYZ deducted $400...

XYZ’s 3 employees earned a total of $2,000 of wages for the week. XYZ deducted $400 for federal income taxes, $200 for state income taxes $153 for Social Sec and Medicare. The company matches the Social Sec and Medicare tax and pays state unemployment tax of $80 and federal unemployment tax of $20. Calculate the payroll deductions, net pay, and employer taxes for the week and answer the following questions:What would be the amount of Total Employee Deductions/Taxes Payable for...

Stone Corporation has 25 employees and incurs total wages and salaries expense of $900,000 per year....

Stone Corporation has 25 employees and incurs total wages and salaries expense of $900,000 per year. The following table shows various payroll amounts as a percentage of this annual wage and salaries expense: In addition, Stone provides group health insurance for its entire workforce. The cost of this insurance is $350 per month per employee. Workers compensation insurance 5 % Social security and Medicare (employees' share and employer's share combined) 15.3 % Pension and other postretirement costs expense (paid by...

What employee data is vital for payroll systems to process wages and salaries? Where is the...

What employee data is vital for payroll systems to process wages and salaries? Where is the data found and how is it used by payroll systems? Discuss in 150–180 words

Spirit Corporation reported the following payroll-related costs for the month of February: Gross pay (wages expense)...

Spirit Corporation reported the following payroll-related costs for the month of February: Gross pay (wages expense) $ 247,000 Social Security and Medicare taxes 18,896 Federal and state unemployment taxes 15,500 Workers' compensation insurance 8,500 Group health and life insurance benefits 12,000 Employee pension plan benefits 25,900 Total payroll costs for February $ 327,796 Spirit’s insurance premiums for workers’ compensation and group health and life insurance were paid for in a prior period and recorded initially as prepaid insurance expense. Withholdings...

Spirit Corporation reported the following payroll-related costs for the month of February. Gross pay (wages expense)...

Spirit Corporation reported the following payroll-related costs for the month of February. Gross pay (wages expense) $ 268,000 Social Security and Medicare taxes 20,502 Federal and state unemployment taxes 15,500 Workers’ compensation insurance 8,300 Group health and life insurance benefits 9,000 Employee pension plan benefits 27,850 Total payroll costs for February $ 349,152 Spirit’s insurance premiums for workers’ compensation and group health and life insurance were paid for in a prior period and recorded initially as prepaid insurance expense. Withholdings...

Payroll Entries Widmer Company had The total earnings of an employee for a payroll period.gross wages...

Payroll Entries Widmer Company had The total earnings of an employee for a payroll period.gross wages of $269,000 during the week ended June 17. The amount of wages subject to social security tax was $242,100, while the amount of wages subject to federal and state unemployment taxes was $34,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.3% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $53,800. If an amount...

Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.

Exercise 13-06The payroll of YellowCard Company for September 2019 is as follows. Total payroll was $480,000, of which $110,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $400,000. Income taxes in the amount of $80,000 were withheld, as was $9,000 in union dues. The state unemployment tax is 3.5%, but YellowCard Company is allowed a credit of 2.3% by the state...

Owen Company forgot to accrue $3,000 of salaries its employees had earned at the end of...

Owen Company forgot to accrue $3,000 of salaries its employees had earned at the end of 2019. It paid and expensed the salaries in 2020. It also, in 2019, recorded $4,000 of sales as an account receivable; however, the sale really did not take place until 2020, and it should have recognized the revenue in 2020. It collected the money from the sale early in 2020. Provide the impact of the errors on the following: Assets as of 12/31/19: $_____________...

The following information pertains to a weekly payroll of Texera Tile Company: a. The total wages...

The following information pertains to a weekly payroll of Texera Tile Company: a. The total wages earned by employees are $17,340. b. The state unemployment insurance contribution rate is 3.5%. c. The entire amount of wages is taxable under FICA, FUTA, and SUTA. d. The amount withheld from the employees' wages for federal income taxes is $1,850; for state income taxes, $373.10; and for group insurance, $189.00. Payment of Wages and the Payroll Taxes Journalize the payment of wages, and...

Adjusting Journal Entries (AJE’s): 1. Wages earned by employees during December (’17) and to be paid...

Adjusting Journal Entries (AJE’s): 1. Wages earned by employees during December (’17) and to be paid in January (’18) are $35,875; associated payroll taxes on these wages are $2,910. (Record in two separate adjusting entries. The payroll taxes are an expense to the company for unemployment benefits and recorded as a payable to the state & federal taxing authority.) 2. The Unearned Consulting Revenue account has a balance of $261,220 as of December 31, 2017. On May 1,2017 a client...

Subjects