- Assume An Employee Of Rocco Rock Company Earns 1 100 Of Gross Wages During The Current Pay Period And Is Required To Re 1 (35.85 KiB) Viewed 26 times
- Assume An Employee Of Rocco Rock Company Earns 1 100 Of Gross Wages During The Current Pay Period And Is Required To Re 2 (28.31 KiB) Viewed 26 times
- Assume An Employee Of Rocco Rock Company Earns 1 100 Of Gross Wages During The Current Pay Period And Is Required To Re 3 (37.27 KiB) Viewed 26 times
Assume an employee of Rocco Rock Company earns $1,100 of gross wages during the current pay period and is required to remit to the government $110 for income tax and $55 for FICA. Consider the following two procedures for paying the employee: Procedure 1 (withholdings) Procedure 2 (No Withholdings) Rocco Rock Company pays the employee net Rocco Rock Company pays the employee gross wages of $935 and will remit income taxes and wages of $1,100 and the employee is YICA on behalf of the employee. responsible for remitting income taxes and FICA himself. Required: 1. Ignoring employer payroll taxes, under each procedure calculate (a) the total amount to be paid by the company and (b) the amount of cash the employee will have after satisfying all responsibilities to the government. Do your answers for procedures 1 and 2 differ for (a)? For (b)? 2. Which approach does the government require? 3. Considering that employers are responsible for matching employees' FICA contributions, which procedure will employers prefer? 4. Prepare the journal entries required by the employer under procedure 1, assuming the employee is paid in cash, but the withholdings and matching employer FICA contribution have not yet been paid. (Do not ignore employer payroll taxes, but assume no unemployment taxes.)
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Ignoring employer payroll taxes, under each procedure calculate (a) the total amount to be paid by the company and (b) the amount of cash the employee will have after satisfying all responsibilities to the government. Do your answers for procedures 1 and 2 differ for (a)? For (b)? Total Labor Cost Amount of Cash Procedure 1 (Withholdings) Procedure 2 (No Withholdings) Do your answers for Procedures 1 and 2 differ? Required Required 2 >
Required 1 Required 2 Required 3 Required 4 Prepare the journal entries required by the employer under procedure 1, assuming the employee is paid in cash, but the withholdings and matching employer FICA contribution have not yet been paid. (Do not ignore employer payroll taxes, but assume no unemployment taxes.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Show less View transaction list Journal entry worksheet く 1 2 Record the wages expense, including payroll deductions. Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general Journal