Mc Glaun Company pays its employees every two weeks. The firm last paid its employees on September 20. For the last ten days of the fiscal year ending September 30, company employees earned gross...

Mc Glaun Company pays its employees every two weeks. The firm last paid its employees on September 20. For the last ten days of the fiscal year ending September 30, company employees earned gross salaries of $16,400. Following is a list of employee payroll deductions for the period September 21 to 30: Employee Payroll Deductions FICA Taxes…………………………………….. $ 827 Federal Income Taxes………………………. 2,910 State Income Taxes…………………………. 416 Health Insurance Premiums…………………….. 485 Required: (a) Prepare the adjusting journal entry required on September 30 related to employee salaries and pay-roll deductions. (b) What payroll-related expenses do businesses incur besides employee wages and salaries? (c) If a person works as an ‘‘independent contractor,’’ employers are not required to deduct income taxes from wages. If you had your choice, would you prefer to work for a company that did or did not deduct income taxes from periodic paychecks? Explain the reasons for your answer. View Solution:

Mc Glaun Company pays its employees every two weeks The