Question
McGlaun Company pays its employees every two weeks. The firm last paid its employees on September 20. For the last ten days of the fiscal
McGlaun Company pays its employees every two weeks. The firm last paid its employees on September 20. For the last ten days of the fiscal year ending on September 30, company employees earned gross salaries of $16,400. Following is a list of employee payroll deductions for the period of September 21 to the 30th.
FICA Taxes - $827
Federal Income Taxes $2910
State Income Taxes $416
Health Insurance Premiums - $485
a) Prepare the adjusting journal entry required on September 30 related to employee salaries and payroll deductions
b) What payroll-related expenses do businesses incur besides employee wages and salaries?
c) If a person works as an "independent contractor", employers are not required to deduct income taxes from their wages. If you had your choice, would you prefer to work for a company that did or did not deduct income taxes from the paycheck? Explain your reasons.
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