The Summary of the Payroll for the Monthly Pay Period

question 44

Essay

The summary of the payroll for the monthly pay period ending July 15 indicated the following: $\begin{array}{lr}\text { Salaries } & \$ 180,000 \\\text { Federal income tax withheld } & 32,300 \\\text { Medical insurance withheld } & 7,370 \\\text { Social security tax withheld } & 10,800 \\\text { Medicare tax withheld } & 2,700\end{array}$ Illustrate the effects on the accounts and the financial statements of (a) the payroll and (b) the employer's payroll tax expense for the month.The state unemployment tax rate is 4.2%, and the federal unemployment tax rate is 0.8%.Only $30,000 of salaries are subject to unemployment taxes.

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Definitions:

State Licensure Laws

Regulations established by each state in the USA that define the requirements for obtaining and maintaining a license to practice various professions, including healthcare professions.

Regulatory Agencies

Governmental bodies established to enforce compliance with laws and regulations within specific industries to protect public health and safety.

Scope Of Practice

The activities that professionals are allowed to perform as defined by their professional licenses, certifications, or specific job descriptions.

Government Agency

An organization functioning within the public sector, created by the government to enforce laws, regulations, and oversee activities within a specific area.