Lightning Electronics is a midsize manufacturer of lithium batteries. The compan

Question

Lightning Electronics is a midsize manufacturer of lithium batteries. The company's payroll records for the November 1-14 pay period show that employees earned wages totaling $55,000 but that employee income taxes totaling $7,500 and FICA taxes totaling $2,875 were withheld from this amount. The net pay was directly deposited into the employees' bank accounts. 1. What was the amount of net pay? Net Pay 2. Assuming Lightning Electronics must also pay $300 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs? Total Payroll Costs

Explanation / Answer

1 Net pay = 55000-7500-2875= $44625 2 Total payroll costs=55000+2875+300= $58175

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