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Need some help with this question: Leonard recorded gross pay of $250,000. This

ID: 2481574 • Letter: N

Question

Need some help with this question:

Leonard recorded gross pay of $250,000. This is subject to employee’s portion of social security and Medicare taxes of $16,750. Unemployment taxes of $3,000, and federal tax withholdings of $46,000. Calculate the payroll tax expense, salaries payable, and the employer’s total liability for this payroll.

Not sure if I'm doing this right, thinking it is:

Payroll tax expense: 16,750

salaries payable: 250,000

the employer’s total liability for this payroll: 266,750

Explanation / Answer

Employees Employers Gross Pay Contr Cont Salaries 250000 Social security & medicare taxes 16750 16750 Unemployment taxes 3000 Federal tax witholdings 46000 Total 250000 62750 19750 Salary payable = Gross Pay - Employees contribution                          = 250000 - 62750                          = 187250 Payroll tax espense = 19750

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