Emily Turnbull, president of Fitness Equipment Corporation, is concerned about her employees' well - being. The company offers its employees free medical dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 5% of their salaries. Assume that no employee 's cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below. Wages and salaries S2, 000, 000 Employee contribution to voluntary retirement plan 100, 000Medical insurance premiums paid by employer 40, 000Dental insurance premiums paid by employer 14, 000Life insurance premiums paid by employer 7, 000Federal and state income tax withheld 430, 000FICA tax rate 7.65%Federal and state unemployment tax rate 6.20% Required: 1 Record the employee salary expense, withholdings, and salaries payable.2 Record the employer - provided fringe benefits.3 Record the employer payroll taxes.
Emily Turnbull, president of Fitness Equipment Corporation, is concerned about her employees' well - being. The company offers its employees free medical dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 5% of their salaries. Assume that no employee 's cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below.
Wages and salaries S2, 000, 000
Employee contribution to voluntary retirement plan 100, 000
Medical insurance premiums paid by employer 40, 000
Dental insurance premiums paid by employer 14, 000
Life insurance premiums paid by employer 7, 000
Federal and state income tax withheld 430, 000
FICA tax rate 7.65%
Federal and state
Required:
1 Record the employee salary expense, withholdings, and salaries payable.
2 Record the employer - provided fringe benefits.
3 Record the employer payroll taxes.
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