Question
CarlaCorporation provides a defined contribution pension plan for its employees. Under the plan, the company deducts5% of each employee's gross pay for each bi-weekly pay
CarlaCorporation provides a defined contribution pension plan for its employees. Under the plan, the company deducts5% of each employee's gross pay for each bi-weekly pay period. The company also contributes6% of the employees' gross pay to the pension plan. The combined pension contributions are then submitted to the pension trustee within 11 days of the end of the month in which the pay was earned.
For the first pay period of October (from Sunday October 1 to October 14, 2020),Carla's total gross payroll was $174,000. Total gross payroll for the period October 15 through Saturday, October 28, 2020, was $173,000. The total anticipated payroll for the period October 29 through November 10, 2020, was $169,000(employees worked Monday through Friday each week). On November 10, 2020,Carlasubmitted the pension contributions to the trustee for the month of October (including accruals up to and including October 31).
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