1.
Lightning Electronics is a midsize manufacturer of lithium batteries. The company
Lightning Electronics is a midsize manufacturer of lithium batteries. The company
Solution
Answer 1:
The total amount - Income taxes - FICA taxes= 50,000-7,000-2,625= $40,375
Answer 2:
Total payroll costs would include the gross pay ($50,000) as well as the additional employer
payroll taxes ($2,625 FICA) and unemployment taxes ($250). In total, Lightning Electric
would report $52,875 as the total payroll cost for this pay period.