Question

During one pay period, Star Valley Company distributes $137,500 to employees as net pay. The income tax withholdings were $20,400 and the FICA withholdings were $9,042. Total payroll costs to the company for this pay period, excluding any unemployment taxes, was:

Answer 1

Total payroll cost = $175,984

Step-by-step explanation:

Given:

Net pay = $137,500

income tax holding = $20,400

FICA with holding = $9,042

Employer contribution on FICA = FICA with holding = $9042

Total payroll cost = ?

Computation of total payroll cost:

Total payroll cost = Net pay (Distribution) + Income tax holding + FICA with holding + Employer contribution on FICA

Total payroll cost = $137,500 + $20,400 + $9,042 + $9,042

Total payroll cost = $175,984