axel inc s its employees free medical, dental and life insurance coverage. It al
ID: 2585799 • Letter: A
Question
axel inc s its employees free medical, dental and life insurance coverage. It also matches employee to a voluntary retirement 13. Axel Inc offe contributions the relevant wage base appropriate journal plan dollar for dollar. Assume that no employee's wages exceed Payroll information for the payroll period ending January 15 are below. Make the s. entries in good form to record the payroll. Wages and salaries Employee contributions to voluntary retirement plan Medical Insurance premiums paid by employer Dental Insurance premiums paid by employer Life Insurance premiuims paid by employer Federal and state income tax withheld FICA rate Federal and state unemployment tax rate $ 2,750,000.00 $ 130,000.00 $ 50,000.00 $ 17,500.00 8,750.00 $ 540,000.00 7.65% 6.20%Explanation / Answer
FICA tax payable = $2,750,000 x 7.65%
.............................= $210,375
Federal and state unemployment tax payable = $2,750,000 x 6.20%
.........................................................................= $170,500
Date Account Titles and Explanation Debit Credit 15-Jan Salaries and Wages Expense $2,750,000 Federal and state income tax payable $540,000 Employee Contribution to Voluntary Retirement Plan Payable $130,000 FICA tax payable $210,375 Salaries and Wages Payable $1,869,625 (To record payroll expense) 15-Jan Payroll tax expense $457,125 FICA tax payable $210,375 Federal and state unemployment tax payable $170,500 Employer's contribution to medical insurance $50,000 Employer's contribution to dental insurance $17,500 Employer's contribution to life insurance $8,750 (To record employer's tax liabilities)Related Questions
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