Question
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
View the payroll elements.
Payroll Elements
a. Office Salary Expense
| 1. Total gross pay |
|
Ask by Newton Daniels. in the United States
Mar 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
- Office Salary Expense: Total Gross Pay
- FICA Medical Security, Federal Income Tax, Medical Insurance: A Deduction
- Wages and Salaries Payable: Net Pay
Solution
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.
-
Office Salary ExpenseThis 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
-
FICA Medical Security, Federal Income Tax, Medical InsuranceThese 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:
-
Wages and Salaries PayableThis 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,
Step 3. Conclusion
- Office Salary Expense:
- FICA Medical Security, Federal Income Tax, Medical Insurance:
- Wages and Salaries Payable:
Answered by UpStudy AI and reviewed by a Professional Tutor
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Explain 
Simplify this solution Bonus Knowledge
To navigate the world of payroll elements, let’s break them down with a fun twist!
First up, the “Total gross pay” refers to the entire amount earned by an employee before any deductions. It’s like the grand prize in a game show - the total you see before taxes and fees come into play!
Next, the deductions include items like “FICA Medical Security,” “Federal Income Tax,” and “Medical Insurance.” Think of these as the exit fees on the road to your final paycheck, helping fund everything from Social Security to your health plan! Now, for the “Net pay,” that’s the sweet cash you actually take home after all deductions are made - your victory lap on payroll day!
