The following information appfies to the questions displayed below The following
ID: 2601734 • Letter: T
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The following information appfies to the questions displayed below The following summary data for the payroll period ended December 27, 2015, are available for Cayman Coating Co.: $97000 Gross pay FICA tax withholdings Income tax withholdings Group hospitalization insurance Employee contributions to pension plan Total deductions Net pay 15,150 1,180 29,836 Additional Information: For employees, FICA tax ates for 2015 were 765% on the first $118.500 of each employees annual earnin s. However, no employees had accumulated earnings or the year n excess in S1850 mit. * For employers, FICA tax rates for 2015 were also 765% on the first $ 8,500 of each employee's annual earnings. * The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employee's annual earnings. Only $16,000 of the gross pay amount for the December 27, 2015, pay period was owed to employees who were still under the annual limit.Explanation / Answer
Gross Pay 97,000 FICA tax Witholding 9,065 Income Tax Witholding 15,150 Group hospitalisation Insurance 1,180 Employee contributions to pension plan 3,441 Total Deductions 28,836 Net Pay 68,164 Employer FICA tax 9,065 FUTA 96 SUTA 864 Employer Expenses 10,025 DR CR Dr Wages Expense 97,000 Cr FICA tax Witholding 9,065 Cr Income Tax Witholding 15,150 Cr Group hospitalisation Insurance 1,180 Cr Employee contributions to pension plan 3,441 Cr Cash or Wages Payable 68,164 B) Dr Employer FICA tax 9,065 Dr FUTA 96 Dr SUTA 864 Cr Cash or Tax Payable 10,025
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