Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Exercise 9-13A (Static) Computation of net pay and payroll expense LO 9.5 [The following information applies to the questions displayed beiow.] The following

image text in transcribed
Required information Exercise 9-13A (Static) Computation of net pay and payroll expense LO 9.5 [The following information applies to the questions displayed beiow.] The following information is available for the employees of Webber Packing Company for the first week of January, Year t: 1. Kayla eams $28 per hour and 1/2 times her regular rate for hours over 40 per week. Kayla worked 52 hours the first week in January. Kayla's federal income tax withholding is equal to 15 percent of her gross pay. Webber pays medical insurance of $50 per week for Kayla and contributes $50 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,600. Paula's federal income tax withholding is 18 percent of her gross pay. Webber pays medical insurance of $80 per week for Paula and contributes $100 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $60 per week for Paula. Assume the Social Security tax rate is 6 percent on the first $130.000 of salaries, and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee, Exercise 9-13A (Static) Part c c. What is the total cost of compensation expense for the first week of January Year 1 for Webber Company? Note: Round the intermediate calculations and your final answer to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Rethinking Clinical Audit Psychotherapy Services In The NHS

Authors: Rachael Davenhill, Matthew Patrick

1st Edition

0415162084, 978-0415162081

More Books

Students also viewed these Accounting questions