The payroll register for Lazur Corporation contained the following totals at the end of July 2011: wages,
Question:
The payroll register for Lazur Corporation contained the following totals at the end of July 2011: wages, $69,623; federal income taxes withheld, $17,791; state income taxes withheld, $2,923; social security tax withheld, $4,313; Medicare tax withheld, $1,009; medical insurance deductions, $2,400; and wages subject to unemployment taxes, $42,930.
REQUIRED
1. Prepare journal entries to record the
(a) Monthly payroll
(b) Employer payroll expenses, assuming social security and Medicare taxes equal to the amount for employees, a federal unemployment insurance tax of 0.8 percent, a state unemployment tax of 5.4 percent, and medical insurance premiums for which the employer pays 80 percent of the cost.
2. If Lazur is planning to hire a new employee for a salary of $1,000 per month, approximately how should the company budget per month for the total cost of this new employee?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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