In Oregon, employers who are covered by the state workers' compensation law withhold employee contributions from the wages of covered employees at the rate of 2.8¢ for each hour or part of an hour that the worker is employed. Every covered employer is also assessed 2.8¢ per hour for each worker employed for each hour or part of an hour. The employer-employee contributions for workers' compensation are collected monthly, quarterly, or annually by the employer's insurance carrier, according to a schedule agreed upon by the employer and the carrier.
The insurance carrier remits the contributions to the state's Workers' Compensation Department.
Umber Company, a covered employer in Oregon, turns over the employer-employee workers' compensation contributions to its insurance carrier by the 15th of each month for the preceding month. During the month of July, the number of full-time employee-hours worked by the company's employees was 26,110; the number of part-time employee-hours was 3,490.
a. The amount the company should have withheld from its full- and part-time employees during the month of July for workers' compensation insurance is $
b. The title you would give to the general ledger account to which the amount withheld from the employees' earnings would be credited is:
c. Journalize the entry on July 31 to record the employer's liability for workers' compensation insurance for themonth.

  • CreatedOctober 10, 2013
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