Answer:
1. Overtime= $1,000
2. Gross Pay= $10,000
3. State Income Taxes = $400
4. Total Deductions= $2,483
5/ Salaries and wages expenses = $10,000 (Gross Pay)
Explanation:
The question says to find the following:
1. Overtime
2. Total
3. State Income Taxes
4. Total Deductions
5. Salaries and Wages Expense
1. Overtime
Overtime is derived after calculating the total Gross Pay (2nd question)
Total Gross Pay= Regular + Overtime
$10,000= $9,000 + Overtime
Therefore, Overtime = $10,000-$9,000
Overtime= $1,000
2. Total Gross Pay (this should be treated before the 1st which is overtime)
= Gross Pay =
= calculated as FICA tax expense /the percentage of FICA taxes
FICA tax expense = $765
% of FICA taxes = 7.65
Gross Pay= $765 / 7.65% (0.0765)
= $10,000
3. State Income Tax
The state Income Taxes is derived as follows
Gross Pay x the given percentage (4%)
State Income taxes = $10,000 x 0.04
State Income taxes = $400
4. Calculate the total deductions
Total Deductions are the sum of the following
FICA taxes + federal Income taxes + State Income taxes + Union dues
= $765+ $1,128+$400+$190
= $2,483
5. Salaries and Wages Expense
The answer to this is simply the derived total gross pay (regular + overtime) Calculated in step 2
Gross pay= salaries and wages expense= $10,000
