Question

Employees at Tech Machine earned a total of $100,000 for the month of

December. The employer of Tech Machine withholds the following on
December 31:
. State income tax: $7,000
●
●
Federal income tax: $17,000
FICA taxes: $7,650
Journalize and compute the wages and salaries expense for an employee at Tech
Machine.

Answer 1

The wages and salaries expense for an employee at Tech Machine is $68,350.

Step-by-step explanation:

To journalize and compute the wages and salaries expense for an employee at Tech Machine, we need to take into account the total earnings of $100,000 and the withholdings on December 31, which are as follows:

• State income tax: $7,000
• Federal income tax: $17,000
• FICA taxes: $7,650

To compute the wages and salaries expense, we subtract the total withholdings from the total earnings:

Total withholdings = $7,000 + $17,000 + $7,650

= $31,650

Wages and salaries expense = Total earnings - Total withholdings

= $100,000 - $31,650

= $68,350.