Question
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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