A Company Has Two Employees Whose Total January Salaries Totaled

question 190

Essay

A company has two employees whose total January salaries totaled $8,000.The federal income tax rate for both employees is 15%.The FICA Social Security tax is 6.2% and the FICA Medicare tax is 1.45%.Calculate the amount of employee taxes withheld and prepare the company's journal entry to accrue the January salaries expense and withholding of January taxes.

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Definitions:

Equity Model

A theory that suggests fairness in the workplace is achieved when the ratio of inputs to outcomes is balanced among employees.

Positives

Positives refer to the favorable aspects or outcomes associated with a situation, decision, or action.

Negatives

Aspects, characteristics, or factors that are considered undesirable, harmful, or detrimental.

Expectancy Model

A theory that describes the motivational force behind an individual's actions as a function of their expectations about outcomes and the values they place on those outcomes.