Total Payroll Cost
Calculate the total cost of labor? 3
The company's payroll for November 1 and 14 shows that its employees received a total salary of $ 100,000, but they withheld $ 5,250 in $ 14,000 employee income tax and $ 14,000 in FICA taxes. Net salaries are transferred directly to the employee's bank account.
Net salary = $ 80,750
I need help with this section:
If the employer has to pay $ 500 unemployment tax on this salary, how much will be included in the total labor costs?
Based on this information, the total cost of labor is $ 100,000 plus the total wage $ 500 unemployment tax that the company pays on earned wages.
That's the equivalent of ,500 100,500.
But here in the US, an employee's FICA fee is deducted from their check, but the company also has to pay the same amount of FICA tax. Even if they do not mention it, an additional employer FICA tax of $ 5,250 will be payable.
In this case, the total cost of salary is $ 100,500 + 5,250 = $ 105750
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Calculate the total cost of labor?
The company's payroll for November 1 and 14 shows that its employees received a total salary of $ 100,000, but this amount was used to include $ 14,000 in employee income tax and $ 5,250 less in FICA tax. Net salary is paid directly to the employee's bank ...
