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i need some help with this problem for accounting. thank you! Problem 5 - Mountain High Ski Resort has 100 employees, each working a 40
i need some help with this problem for accounting. thank you!
Problem 5 - Mountain High Ski Resort has 100 employees, each working a 40 hour week. They are each paid \$20 per hour. The company does not provide any health or retirement benefits. Employees do, however, get to ski for free on their days off. Federal Income Tax (FIT) is withheld at 10% and State Income Tax (SIT) at 5\%. FICA taxes are 7% of the first $140,400 earned per employee. Unemployment taxes are 6% of the first $7,000 per employee. Required: A) Compute the total salary expense, the total withholdings from employee salaries and the total net pay that will be paid via Direct Deposit for the first week in January. B) Compute the total payroll tax expense that Mountain High will pay for that same first week in January. This does not include what will be paid to the employees, just what is imposed on the employer, Mountain High. C) How should Mountain High account for the free skiing the employees get to enjoy on their days off Step by Step Solution
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