The company\'s annual payroll-related expenses amount to approximately: Employee
ID: 2438325 • Letter: T
Question
The company's annual payroll-related expenses amount to approximately:
Employees' annual "take-home-pay," totals approximately:
(no handwritten answers please, thank you!)
Required information The following information applies to the questions displayed below. Stone Corporation has 20 employees and incurs total wages and salaries expense of $600,000 per year. The following table shows various payroll amounts as a percentage of this annual wage and salaries expense: 5% Workers compensation insurance Social security and Medicare (employees' share and Employer's share combined) Pension and other postretirement costs expense (paid by employer) Personal income taxes withheld Unemployment taxes expense 15.3 % 5% 10% 2% In addition, Stone provides group health insurance for its entire workforce. The cost of this insurance is $350 per month per employeeExplanation / Answer
Given Data:
Stone corporation has 20 employees,
Total wages and salaries = $600,000,
cost of insurance = $350 per month
Pay roll amounts as percentage of this annual wages and salaries expense as shown above
REQURIED :
Annual payroll-related expenses amount approximately?
SOLUTION:
SALARY EXPENSES = $ 600,000
ADD:
workers compensation insurance 5% = $ 30,000
600000 / 5%
= 600000 *5 /100
=3000000 / 100
= 30000
social security and medicare 15.3% = $ 2295
pension & other post retriement = $ 30,000
unemplyoment tax 2% = $ 12000
600000 /2%
= 600000*2 / 100
= 1200000 /100
= 12000
Insurance (350 * 20*12) = $84000
350 *20 * 12
= 7000 * 12
= 84000
ANNUAL PAY ROLL RELATED EXPENSES = $ 758,295