Employer records the salary expenses for all employees’ gross pay.Assume that the

total salary expenses for ABC company’s employees are $15,500 for the month of September 2017. It consists of:

FICA Social Security taxes (6.2% of up to $118,500 of an employee’s earnings): $2,170
FICA Medicare/Medicaid Taxes (1.45% of earnings): $530
Federal Income Taxes Withheld: $4,100
State Income Taxes Withheld: $300
Voluntary deductions( i.e., insurance prem, 401k, union dues…) $200
Net pay (paycheck) ?

The employer ABC company is subject to the payroll taxes as follows:

FICA Social Security taxes – matching employee’s portion
FICA Medicare/Medicaid Taxes – matching employee’s portion
Federal Unemployment Tax – 0.8% of first $7,000 of an employee’s earnings (No employee reached $7,000 of earnings yet.)
State Unemployment Tax – 3% (rate varies in real world).

Employer ABC expects to send out the withheld amounts to various governments and others by Oct 15.

Questions:

1. How much was the net pay in Sept 30 2017 salary expense (=payroll expense)?

Employer records the salary expenses for all employees’ gross pay. Assume that the total salary expenses for ABC company’s employees are $15,500 for the month of September 2017