Accurate Reports Has 50 Employees Each Working 40 Hours Per

question 87

Essay

Accurate Reports has 50 employees each working 40 hours per week and earning $25 an hour.Federal income taxes are withheld at 15% and state income taxes at 6%.FICA taxes are 7.65% of the first $106,800 earned per employee and 1.45% thereafter.Unemployment taxes are 3.8% of the first $7,000 earned per employee.
1.Compute the total salaries expense,the total withholdings from employee salaries,and the actual direct deposit of payroll for the first week of January.
2.Compute the total payroll tax expense Accurate Reports will pay for the first week of January.

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Definitions:

Binding Contract

An agreement between two or more parties that is enforceable by law, where all parties have agreed to the terms through offer and acceptance.

Contractual Capacity

The legal ability of a person to enter into a binding contract.

Form a Contract

The process of creating a legally binding agreement between two or more parties.

Consideration

The benefit which is bargained for between the parties and is the essential reason for a party entering into a contract.