Spirit Corporation reported the following payroll-related costs for the month of February:
Gross pay (wages expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000
Social Security and Medicare taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19,125
Federal and state unemployment taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15,500
Workers' compensation insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,500
Group health and life insurance benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10,000
Employee pension plan benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,875
Total payroll costs for February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $326,000
Spirit's insurance premiums for workers' compensation and group health and life insurance were paid for in a prior period and recorded initially as prepaid insurance expense. Withholdings from employee wages in February were as follows:
State income tax withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,875
Federal income tax withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,000
Social Security and Medicare tax withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19,125
a. Record Spirit's gross wages, employee withholdings, and employee take-home pay for February.
b. Record Spirit's payroll tax expense for February.
c. Record Spirit's employee benefit expenses for February.
d. Do the amounts withheld from spirit's employees represent taxes levied on spirit Corporation? Explain.