Magnum Plus, Inc., is a manufacturer of hunting supplies. The following is a summary of the company's annual payroll-related costs:
Wages and salaries expense (of which $2,200,000 was withheld
from employees' pay and forwarded directly to tax authorities) $ 7,200,000
Payroll taxes 580,000
Workers' compensation premiums 250,000
Group health insurance premiums 725,000
Contributions to employees' pension plan 450,000