3 0,00 points value Lightning Electronics is a midsize manufacturer of lithium b

Question

3 0,00 points value Lightning Electronics is a midsize manufacturer of lithium batteries. The company's payroll records for November 114 pay period show that employees earned wages totaling $64,000 but that employee income taxes totaling $8 400 and FICA taxes totaling $3,325 were withheld from this amount. The net p directly deposited into the employees bank accounts the 1. What was the amount of net pay? Net Pay 2. Assuming Lightning Electronics must also pay $390 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs? Total Payroll Costs eBook & Resources

Explanation / Answer

Net pay = Gross pay - Income tax deduction - FICA deduction = 64000 - 8400 - 3325 = 52,275

Explanation

For the Net pay, our calculation should be what is payable to the employee in terms of cash after with holding his obligations towards income tax and FICA taxes.

Total payroll cost = Gross salary + Employer share of FICA taxes + Unemployment taxes

= 64000 + 3325 + 390

= 67,715

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