Assume an employee of Rocco Rock Company earns $1,300 of gross wages during the current pay period and is required to remit to the government $130 for Income tax and $65 for FICA. Consider the following two procedures for paying the employee: Procedure 1 (Withholdings) Procedure 2 (No Withholdings) Rocco Rock Company pays the employee gross wages of $1,300 and the employee is responsible for remitting Income taxes and FICA hi mself Rocco Rock Company pays the employee net wages of $1,105 and will remit Income taxes and FiCA on Required: 1-a. Ignoring employer payroll taxes, under each procedure calculate (a) the total labor cost for the company and (y the amount of cash the employee w have after satistying al respons bilities to the government Procedure 1 withholdings 1-b. Do your answers for procedures 1 and 2 differ for (aj? for (bj? es No 2. Which approach does the government require? Procedure 2 (No wthholdings) 3. Considering that employers are responsible for matching employees' FICA contributions, which procedure will employers prefer? Procedure 2 (No wthholdings) 4. Prepare the journal entries required by the employer under procedure 1, assuming that the employee is paid in cash, but the withholdings and matching employer FICA contribution have not yet been paid. (Assume no unemployment taxes.) of no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the wages expense, including payroll deductions. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry View general journal Clear entry 4. Prepare the journal entries required by the employer under procedure 1, assuming that the employee is paid in cash, but the withholdings and matching employer FICA contribution have not yet been paid. (Assume no unemployment taxes.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the payroll tax expense. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal