Kierofree Air Tours has the following payroll data for its November 5 pay date: Nov 5 Wages and salaries expense 522 $ 199,023.00
Federal withholding tax payable 220 $ 33,833.91
Social Security tax payable 221 11,442.35
Medicare tax payable 222 2,676.03
401(k) contributions payable 223 6,965.81
Health Insurance payable 224 14,468.97
Union Dues payable 227 4,975.58
Wages and salaries payable 226 ???
How much is the net pay?
A) $199,023.00
B) $124,660.35
C) $185,216.26
D) $142,578.94

Question

Quizplus · Accepted Answer

The net pay is calculated by subtracting all deductions from the total wages and salaries expense. The deductions include federal withholding tax, Social Security tax, Medicare tax, 401(k) contributions, health insurance, and union dues. Subtracting these from $199,023.00 gives $124,660.35.

Kierofree Air Tours Has the Following Payroll Data for Its