(1) What is the difference between gross earnings and net earnings?

(2) Please give two examples of withholdings from employees' pay and explain whether your selected withholdings are considered required or voluntary.

(3) The payroll register of Clapton Co. indicates $11,340 of social security withheld and $2,835 of Medicare tax withheld on total salaries of $189,000 for the period. Federal withholding for the period totaled $37,420. Provide the journal entry for the period's payroll.

(4) The payroll register of Clapton Co. indicates $11,340 of social security withheld and $2,835 of Medicare tax withheld on total salaries of $189,000 for the period. Earnings of $19,000 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period.

Answer rating: 100% (QA)

Gross Profit vs Net Income An Overview Two critical profitability metrics for any company include gross profit and net income Gross profit represents the income or profit remaining after the productio... View the full answer