Determine if the following is: 1. Total gross pay 2. A deduction 3. Net pay View the payroll elements. Payroll Elements a. Office Salary Expense \begin{tabular}{ll} 1. Total gross pay & $$ \begin{array}{l} ext { 2. A deduction } \ ext { 3. Net pay } \ ext { a. Office Salary Expense } \ ext { c. FICA Medial Security } \ ext { d. Federal Income Tax } \ ext { e. Medical Insurance } \ ext { f. Wages and Salaries Payable }\end{array} $$ \ \hline\end{tabular}

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Determine if the following is: 1. Total gross pay 2. A deduction 3. Net pay View the payroll elements. Payroll Elements a. Office Salary Expense \begin{tabular}{ll} 1. Total gross pay & $$ \begin{array}{l}	ext { 2. A deduction } \ 	ext { 3. Net pay } \ 	ext { a. Office Salary Expense } \ 	ext { c. FICA Medial Security } \ 	ext { d. Federal Income Tax } \ 	ext { e. Medical Insurance } \ 	ext { f. Wages and Salaries Payable }\end{array} $$ \ \hline\end{tabular}

UpStudy AI · Accepted Answer

**Step 1. Understanding the Categories**

- **Total Gross Pay:** The total amount earned by employees before any deductions. In the payroll journal entry, this is the expense that represents the full amount of wages earned.
- **A Deduction:** An item withheld from the total gross pay (e.g., taxes, insurance premiums) before paying the employee.
- **Net Pay:** The amount the employee takes home after all deductions have been subtracted from the gross pay.

**Step 2. Analyzing the Payroll Elements**

The payroll elements are listed as follows:
- **Office Salary Expense**
- **FICA Medical Security**
- **Federal Income Tax**
- **Medical Insurance**
- **Wages and Salaries Payable**

We now assign each element to one of the three categories.

1. **Office Salary Expense**

This account represents the company’s expense for paying its employees. In a typical payroll journal entry, the Office Salary Expense (or just Salaries Expense) is debited for the total amount earned by employees, which is the total gross pay before deductions. Therefore, we interpret  
   $$
   \text{Office Salary Expense} \equiv \text{Total Gross Pay}
   $$

2. **FICA Medical Security, Federal Income Tax, Medical Insurance**

These items are all amounts withheld from an employee’s earnings. They are deducted from the total gross pay to arrive at the net pay. Thus, each of these represents:  
   $$
   \text{A Deduction}
   $$

3. **Wages and Salaries Payable**

This is a liability account that reflects the amount the company owes to its employees after deductions have been made. In other words, it represents the net amount that will be paid out; hence, it is the net pay. Formally,  
   $$
   \text{Wages and Salaries Payable} \equiv \text{Net Pay}
   $$

**Step 3. Conclusion**

- **Office Salary Expense:** $$ \textbf{Total Gross Pay} $$
- **FICA Medical Security, Federal Income Tax, Medical Insurance:** $$ \textbf{A Deduction} $$
- **Wages and Salaries Payable:** $$ \textbf{Net Pay} $$
- **Office Salary Expense:** Total Gross Pay - **FICA Medical Security, Federal Income Tax, Medical Insurance:** A Deduction - **Wages and Salaries Payable:** Net Pay

Determine if the following is:

Total gross pay

A deduction

Net pay
View the payroll elements.
Payroll Elements
a. Office Salary Expense

1. Total gross pay

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Determine if the following is: Total gross pay A deduction Net pay View the payroll elements. Payroll Elements a. Office Salary Expense 1. Total gross pay