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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