First Street Restaurant Incurred Salaries Expense of $60,000 for 2018

question 162

Essay

First Street Restaurant incurred salaries expense of $60,000 for 2018.The payroll tax expense includes employer FICA tax,state unemployment tax and federal unemployment tax.Year-to-date earnings do not exceed $118,500.Of the total salaries,$17,000 is subject to unemployment tax.Currently,state unemployment tax is 5.4% and federal unemployment tax is 0.6%.Also,the company provides the following benefits for employees: health insurance (cost to the company,$2,500),life insurance (cost to the company,$700),and retirement benefits (cost to the company,10% of salaries expense).Journalize First Street's expenses for employee benefits and for payroll taxes.Explanations are not required.

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Definitions:

Health Care Spending

The total amount of money spent on medical services, treatments, drugs, and other related healthcare services by individuals, insurers, and government agencies.

Health Care Industry

The sector comprising medical services, manufacturing of medical equipment or drugs, insurance, and other goods and services designed to maintain or improve health.

GDP

Gross Domestic Product; the total market value of all the goods and services produced within a country in a specific period.

Health Clubs

Health clubs, also known as gyms or fitness centers, are facilities that provide a range of physical exercise equipment and programs to help individuals maintain or improve their fitness levels.