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Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the companys annual payroll-related costs. Wages and salaries expense (of
Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the companys annual payroll-related costs.
Wages and salaries expense (of which $2,200,000 was withheld from employees pay and forwarded directly to tax authorities) | $ | 7,200,000 | |
Payroll taxes | 580,000 | ||
Workers compensation premiums | 250,000 | ||
Group health insurance premiums | 725,000 | ||
Contributions to employees pension plan | 450,000 | ||
a. Compute Big Games total payroll-related costs for the year.
b. Compute the net amount of cash actually paid to employees (their take-home pay).
c-1. Express total payroll-related costs as a percentage of total wages and salaries expense.
c-2. Express total payroll-related costs as a percentage of employees take-home pay.
(Round your percentage answers to the nearest whole percent.)
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