A Company Has Three Employees

question 67

Essay

A company has three employees.Total salaries for the month of January were $8,000.The federal income tax rate for all employees is 15%.The FICA-social security tax rate is 6.2% and the FICA-Medicare tax rate is 1.45%.Calculate the amount of employee taxes withheld and prepare the company's journal entry to record the January payroll assuming these were the only deductions.

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Definitions:

Disneyfication

The process by which commercialized elements reshape and homogenize cultural and urban landscapes, making them resemble the sanitized, entertainment-focused environments of Disney theme parks.

Coca-colonization

The term used to describe the globalization of American culture pushed through popular American products, notably Coca-Cola, and its impact on the cultural diets and practices of other nations.

Neoliberalism

An economic philosophy that argues for the sovereignty of the free market without any government intervention. The sole responsibility of a company is to make a profit for its shareholders. To maximize the social good, the model of the market must be extended to all realms of society.

Market Speculation

The act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain.