Question
Major Company had $336,000 of total wages earned by employees for the payroll period occurring during the last week of January 2019. Major provided the
Major Company had $336,000 of total wages earned by employees for the payroll period occurring during the last week of January 2019. Major provided the following additional items that are also related to the same payroll period:
*Health Insurance: employees who sign up for health insurance pay half the insurance premium (as a payroll deduction) with Major Company paying the other half. **Pension: not all employees choose to contribute to the pension plan, the above value represents the total contribution made by participating employees for the above-mentioned payroll period. Major Company matches 100% of employee contributions dollar-for-dollar.
True or False: The total cost of this payroll to Major is $396,104.
Employee's Federal Income tax $67,220 Employee's State Income tax $17,000 Federal Unemployment Tax $2,000 State Unemployment Tax $6,700 Employee's Social & Security and Medicare tax $25,704 Employee share of health insurance premiums* $21,500 Employee 5% pension contribution** $4,200Step by Step Solution
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