U to consolidated Financial Statements 7 (in Part): Commitments and Contingencies (Adapted) The company self-insures its product liability losses in the United States up to $3 million Catastrophic coverage is maintained for individual claims in excess of $3 million up to $25 million yroll amounts 3 et pay, $2,980 1. Why are these contingent (versus real) liabilities? 2. How can a contingent liability become a real liability for Harley- Davidson? What are the limits to the company's product liabilities in the United States? Starter 11-12 Suppose you work for an accounting firm all year and earn a monthly salary of $4,000. There is no overtime pay. Your withheld deductions are 20 percent of gross pay. In addition to payroll deductions, you choose to contribute 4 percent monthly to your pension plan. Your employer also deducts $60 monthly for your payment of the health insurance premium. Compute your net pay for November. Starter 11-13 Mike Klyn is paid $840 for a 40-hour workweek and time and a half for hours worked above 40. 1. Compute Klyn's gross pay for working 50 hours during the first week of February. 2. Klyn is single, and his income tax withholding is 20 percent of total pay. His only payroll deductions are taxes withheld, CPP of 4.95 percent, and El of 1.88 percent. Compute Klyn's net pay for the week. er 11-14 Return to the Mike Klyn payroll situation in Starter 11-13. Klyn's employer, Jones Golf Corp., pays all the standard payroll expenses plus benefits for employee pensions (5 percent of gross pay), BC health insurance ($60 per employee per month), and disability insurance (58 per emplovee per an employee's total pay 3) t pay, $845.12 payroll expense of an employer