Question

Arrow Systems offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 6% of their salaries. Assume that no employee’s cumulative wages exceed the relevant wage bases. Payroll information for the bi-weekly payroll period ending January 24th is listed below.
Wages and salaries...................$ 1,000,000
Employee contribution to voluntary retirement plan ..... 60,000
Medical insurance premiums .............. 25,000
Dental insurance premiums .............. 6,000
Life insurance premiums ............... 7,000
Federal and state income taxes to be withheld ....... 205,000
FICA tax rate ................... 7.65%
Federal and state unemployment tax rate ......... 6.20%

Required:
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.



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  • CreatedJuly 15, 2014
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