Midwest Shipping Pays Employees at the End of Each Month

question 7

Essay

Midwest Shipping pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. $$\begin{array} { l r } \text { Salaries } & \$ 800,000 \\\text { Federal and state income taxes withheld } & 160,000 \\\text { Federal unemployment tax rate } & 0.80 \% \\\text { State unemployment tax rate (after FUTA deduction) } & 3.00 \% \\\text { Social Security (FICA) tax rate } & 7.65 \%\end{array}$$ Record salaries expense and payroll tax expense for the January pay period.

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Definitions:

Optic Disk

The point in the eye where the optic nerve enters the retina, often referred to as the blind spot since it lacks photoreceptors.

Negative Employment Message

Communication from an employer that conveys unfavorable job-related information, such as a rejection notice or a notice of termination.

Emotional Stake

The emotional investment or interest an individual has in the outcome of a situation or in another person.

Direct Approach

A straightforward method of communication or problem-solving that addresses the issue without evasion or subterfuge.