Assume an employee of Rocco Rock Company earns $3,400 of gross wages during the current pay period and is required to remit to the government $340 for income tax and $170 for FICA. Consider the following two procedures for paying the employee: Procedure 1 (Withholdings) Procedure 2 (No Withholdings) Rocco Rock Company pays the Rocco Rock Company pays the employee employee net wages of $2,890 and will gross wages of $3,400 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 Procedure 1 (Withholdings) Procedure 2 (No withholdings) 1-b. Do your answers for procedures 1 and 2 differ for (a)? for (b)? Yes 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? 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? O Procedure 1 (Withholdings) Procedure 2 (No withholdings) 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 1 Record the wages expense, including payroll deductions. > 2 Record the payroll tax expense. Credit Note : - journal entry has been entered Record entry Clear entry View general Journal