Compute the total salary expense

Reference no: EM131521586

Question: Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $10 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $106,800 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee.

Required: 1. Compute the total salary 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 Aspen Ski Resorts will pay for the first week of January in addition to the total salary expense and employee withholdings calculated in Requirement 1.

3. How should Aspen Ski Resorts account for the free skiing given to employees on their days off?

Reference no: EM131521586

Questions Cloud

What specific skills are needed for the job or career field : What specific skills are needed for the job or career field of your choice? Your response to this question should be based on research.

Record the employee salary expense : During January, Luxury Cruise Lines pays employee salaries of $2 million. Withholdings in January are $153,000 for the employee portion of FICA, $300,000.

Discuss the values and behaviors of the founder : Discuss the values and behaviors of the founder. How have those values and behaviors become embedded within the organization culture

Identify the ethical issues faced by the organization : Identify the ethical issues faced by the organization, summarize the legal and regulatory issues faced by the organization.

Compute the total salary expense : Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $10 an hour. Although the company does not pay any health or retirement.

Record the advance collection for itunes gift cards : Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments.

What were the major issues facing migrant labor : Historically, what were the major issues facing migrant labor? Have they been resolved? What role have unions played in addressing migrant workers' concerns

How does an agencys mission determine its role definition : Discuss why law enforcement and domestic security agencies search for defined roles in their battle against terrorism.

Analyze the issue using the sources found : Analyze the issue using the sources found. Determine a resolution for the issue based on research conducted. Consider how your conclusions relate to EbM model.

User Account

All Pages