Narrative 9-2Use the information below to solve the following problems:
Tax Rate
Wage Base
Social security6.2%
$128,400
Medicare1.45%
no limit
FUTA.6%
$7,000
SUTA5.4%
$7,000
?
Refer to Narrative 9-2. Solomon Plastics employs 272 workers and has a gross payroll of $186,500.00 per week. Fringe benefits are 4 3/4% of gross payroll for sick days and maternity leaves, 8.2% for health insurance, 3.6% for the retirement fund, and $28.75 per employee for a stock purchase plan.
a.What is the company's weekly cost of fringe benefits?b.What percentage of the payroll does this represent? (Round to the nearest hundredth of a percent)
What will be an ideal response?
| a. | $38,685.75 |
| b. | 20.74% |
You might also like to view...
Cash equivalents are reported in the Operating Activities section of the statement of cash flows
a. True b. False Indicate whether the statement is true or false
Bogart Company has 40,000 shares of common stock outstanding. The book value per share of this stock was $60.00 and the market value per share was $75.00 at the end of the year. Net income for the year was $400,000. Interest on long-term debt was
$40,000. Dividends paid to common shareholders were $3.00 per share. The tax rate was 30%. The company's price-earnings ratio at the end of the year was: A) 25 to 1 B) 20 to 1 C) 7.5 to 1 D) 6 to 1
The adjusting entry used to record the estimated bad debts in the period credit sales occur decreases:
A. net income and increases liabilities. B. assets and increases liabilities. C. both selling expenses and net income. D. both net income and net accounts receivable.
Conflicts emerge as a natural part of work life.
Answer the following statement true (T) or false (F)