Mc Glaun Company pays its employees every two weeks. The rm last paid its employees on September
Question:
Employee Payroll Deductions
FICA Taxes............................................ $ 827
Federal Income Taxes............................ 2,910
State Income Taxes............................... 416
Health Insurance Premiums.......................... 485
Required:
(a) Prepare the adjusting journal entry required on September 30 related to employee salaries and pay-roll deductions.
(b) What payroll-related expenses do businesses incur besides employee wages and salaries?
(c) If a person works as an ‘‘independent contractor,’’ employers are not required to deduct income taxes from wages. If you had your choice, would you prefer to work for a company that did or did not deduct income taxes from periodic paychecks? Explain the reasons for your answer.
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