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Ron works for the local supermarket. Ron's pay is $10 per hour for the first forty hours each week. He receives time and a half for any hours he works over fourty. Ron's income tax withholding is 18% of gross pay for the federal government and 6% for the state. He also pays the FICA tax of 7.65% of his gross pay. Ron's employer pays mandatory union dues of $32, his share of the company supllemented health insurance premium of $66, and a voluntary donation to a local charity of $24 directly from Ron's pay. Ron was looking forward to his paycheck this week since he worked a total of 44 hours. He was excited about having some cash left over after making his car and rent payments.

1)Calculate Ron's gross and net pay. How excited should Ron be? Show the entry necessary for Ron's employer to record wage expense.

2.)Show Ron's firm's entires necessary to record its payroll tax expense (assume normal employer FICA and federal and state unemployment taxes)

3.)Ron's firm pays $78 toward his health insurance premium as a finge benefit. They also contribute $37 per week to a pension plan. Show Ron's firm's entries necessary to record its employee fringe benefit expense.

4.)How much total money does Ron's company pay him for his work?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9972729

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