Question
Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the company's 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 company's annual payroll-related costs: |
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Wages and salaries expense (of which $2,200,000 was withheld from employees' pay and forwarded directly to tax authorities) | $ | 6,700,000 |
Payroll taxes |
| 580,000 |
Workers' compensation premiums |
| 250,000 |
Group health insurance premiums |
| 725,000 |
Contributions to employees' pension plan |
| 450,000 |
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a. | Compute Big Games total payroll-related costs for the year. | ||||||||||||
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b. | Compute the net amount of cash actually paid to employees (their take-home pay). | ||||||||||||
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c-1. | Express total payroll-related costs as a percentage of total wages and salaries expense. |
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c-2. | Express total payroll-related costs as a percentage of employees' take-home pay. |
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