Assume an employee of Rocco Rock Company earns $2,200 of gross wages during the current pay period and is required to remit to the government $220 for income tax and $110 for FICA. Consider the following two procedures for paying the employee: Procedure 1 (Withholdings) Procedure 2 (No Withholding Rocco Rock Company pays the Rocco Rock Company pays the employee employee net wages of $1.870 and will gross wages of $2,200 and the remit income taxes and FICA on behalf employee is responsible for remitting of the employee. income taxes and FICA himself Required: 1-a. Ignoring employer payroll taxes, under each procedure calculate (a) the total labor cost for the company and (b) the amount of cash the employee will have after satisfying all responsibilities to the government. Total Labor Cost Amount of Cash 2,200 Procedure 1 (Withholdings) Procedure 2 (No withholdings) $ 1-b. Do your answers for procedures 1and 2 d ffer for (a)? for (b)? Yes No 2. Which approach does the government require? O Procedure 1 (Withholdings) O Procedure 2 (No withholdings) 3. Considering that employers are responsible for matching employees FICA contributions, which procedure will employers prefer? ook Procedure 1 (Withholdings) Procedure 2 (No withholdings) int ences Journal entry worksheet 2 Record the wages expense, including payroll deductions. Note: Enter debits before credits. General Journal Debit Credit Transaction Record entry Clear entry View general jour Journal entry worksheet Record the payroll tax expense. Note: Enter debits before credits. General Journal Debit Credit Transaction Clear entry View general journal Record entry