Vacation Destinations offers its employees the option of contributing up to 5% o
ID: 2466721 • Letter: V
Question
Vacation Destinations offers its employees the option of contributing up to 5% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below.
Record the employee salary expense, withholdings, and salaries payable.
FEB.14 Record the employee salary expense, withholdings, and salaries payable.
2.Record the employer-provided fringe benefits.
FEB.14 Record the employer-provided fringe benefits.
3.Record the employer payroll taxes
FEB.14
Vacation Destinations offers its employees the option of contributing up to 5% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below.
Explanation / Answer
1
Record the employee salary expense, withholdings, and salaries payable.
FEB.14 Record the employee salary expense, withholdings, and salaries payable.
2.Record the employer-provided fringe benefits.
FEB.14 Record the employer-provided fringe benefits.
3.Record the employer payroll taxes
FEB.14
Date Description Debit $ Credit $ 14-Feb Salaries Expenses 950000 FICA Tax Payable 72675 Accounts Payable(Retirement Plan) 39900 Incometax Payable 237500 Salaries Payable ( to the balance) 599925Related Questions
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