The following payroll information is available for three

companies for
The following payroll information is available for three companies for 2016. Each company has
two employees. Assume that the Social Security tax rate is 6 percent on the first $110,000 of
earnings and the Medicare tax rate is 1.5 percent on all earnings. Other benefits provided for
the employees:Medical insurance ..... $250 per month for each employeePension benefits ......
$100 per month for one employeeFederal income tax withheld is 15 percent of gross earnings
for each employee. The state unemployment tax rate is 5.4 percent and the federal
unemployment tax rate is 0.6 percent on the first $7,000 of earnings per employee.Other
benefits provided for the employees:Medical and dental insurance ...... $325 per month for each
employeePension benefits .......... $150 per month for one employee and$100 per month for the
other employeeFederal income tax withheld is 15 percent of gross earnings for each employee.
The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6
percent on the first $7,000 of earnings per employee. Other benefits provided for the
employees:Medical and dental insurance .... $375 per month for only one employeePension
benefits .......... 10% of gross salary for the full time employeeFederal income tax withheld is 15
percent of gross earnings for each employee. The state unemployment tax rate is 5.4 percent
and the federal unemployment tax rate is 0.6 percent on the first $7,000 of earnings per
employee.Requireda. Divide the class into groups of four or five students. Organize the groups
into three sections.Assign each section of groups the payroll data for one of the above
companies.Group Tasks(1) Determine the gross and net payroll for your company for the
year.(2) Determine the total compensation cost for your company for the year.(3) Have a
representative from each section put the compensation on the board broken down by salaries
cost, payroll tax, and fringe benefit cost.Class Discussionb. Have the class discuss how the
categories of compensation cost are similar and why some are more or less than those of the
other companies.View Solution: The following payroll information is available for three
companies for
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