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Dole Electronics, a C Corporation, has 4 employees. The company sponsors a profit sharing plan and contributed 10% of employee compensation for the current year
Dole Electronics, a C Corporation, has 4 employees. The company sponsors a profit sharing plan and contributed 10% of employee compensation for the current year to the plan. The company has the following employee information. There is no state income tax and federal withholding is 15% of gross pay. GROSS SALARY $50,000 $40,000 $30,000 $20,000 PROFIT SHARING CONTRIBUTION EMPLOYEE Andy Candy Mandy Sandy $5,000 $4,000 $3,000 $2,000 Which of the following statements is true? a. Dole Electronics will not be able to take a deduction for the contribution to the profit sharing plan. b. After payroll taxes and withholding, Andy will only receive $38,675 in take home salary c. Dole electronics will pay FICA payroll taxes of $11,781. d. Candy must include the $4,000 contribution to the profit sharing plan made on her behalf in her gross income for the current year
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