Chapter 10 Homework 5: Assume an employee of Rocco Rock Company earns $2.500 of gross wages during the current pay period and is required to remit to the government $250 for income tax and $125 for FICA Consider the following two procedures for paying the employee: 12 points Rocco Rock Company pays the Rocco Rock Company pays the employee net wages of $2125 and employee gross wages of $2,500 will remit income taxes and FICA on and the employee is responsible for remitting income taxes and FICA himself behalf of the employee eBook Required: Print talgnoring employer payroll taxes, under each procedure calculate the total labor cost for the company and (bj the amount of cash the employee will have after satisfying all responsibilities to the government Reference Procedure 1 rocedute 2 ( hhol 1-b. Do your answers for procedures 1 and 2 differ for (P for (? Yes No 2. Which approach does the govermment require Procedure 1 (Withholdings) Procedure 2 (No withholdings) 3. Considering that employers are responsible for matching employees FICA contributions, which procedure will employers prefer? 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) (f no entry is required for a transaction/event select "No Journal Entry Required" in the first account field View transaction list 1-b. Do your answers for procedures 1 and 2 differ for (@? for (bj? 5 Yes No 12 points 2. Which approach does the government require? eBook Procedure 1 (Withholdings) Procedure 2 (No withholdings) Print Reference 3. Considering that employers are responsible for matching employees' FICA contributions, which procedure will employers prefer? 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) pf no entry is required for transaction/event, select "No Journal Entry Required" in the first account field) View transaction list Journal entry worksheet Record the wages expense, including payroll deductions. Note: Enter debits before credits. Record entry View general journal Clear entry 3. Considering that employers are responsible for matching employees' FICA contributions, which procedure will employers prefer? 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 Journal entry worksheet Record the payroll tax expense. Note: Enter debits before credits. Transaction General Journal 2 Record entry View general journal Clear entry
