Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees well-being. The company offers its employees free medical, dental, and life insurance coverage.
Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees well-being. The company offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 6% of their salaries. Assume that no employees cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below.
Wages and salaries | $ | 2,050,000 | |
Employee contribution to voluntary retirement plan | 102,500 | ||
Medical insurance premiums paid by employer | 41,000 | ||
Dental insurance premiums paid by employer | 14,350 | ||
Life insurance premiums paid by employer | 7,175 | ||
Federal and state income tax withheld | 440,750 | ||
FICA tax rate | 7.65 | % | |
Federal and state unemployment tax rate | 6.20 | % | |
Required:
1., 2. & 3. Record the necessary journal entries.
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1
Record the employee salary expense, withholdings, and salaries payable.
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2
Record the employer-provided fringe benefits.
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3
Record the employer payroll taxes.
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