Problem 13-13 Payroll-related liabilities [Appendix]
Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their wages or salaries, with the contribution being matched by Alamar. The company also pays 80% of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows:
Wages and salaries $ 2,500,000
Employee contribution to voluntary retirement plan 89,000