Answer:
(a) $9,435,000
(b) $5,230,000
(c) 1.27 or 127%
(d) 1.80 or 180%
Explanation:
(a) Big Game's total payroll- Related costs for the year:
= wages and salaries expense + payroll taxes + workers compensation premiums + group health insurance premium + contributions to employees pension plan
= $7,430,000 + 580,000 + 250,000 + 725,000 + 450,000
= $9,435,000
(b) Net amount of cash actually paid to employees:
= wages and salaries earned - Amount withheld from the employees pay
= $7,430,000 - $2,200,000
= $5,230,000
(c) Express total payroll related costs as a percentage of total wages and salaries expense:
= Total payroll related costs ÷ wages and salaries expense
= $9,435,000 ÷ $7,430,000
= 1.27 or 127%
(d) Express total payroll related costs as a percentage of employees take-home pay:
= Total payroll related costs ÷ Take home pay
= $9,435,000 ÷ $5,230,000
= 1.80 or 180%
