Reference no: EM131680043

Question - 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: How much was the net pay in Sept 30 2017 salary expense (=payroll expense)?