Deadline Due by the end of Week 7 at 11.59 pm, ET. Directions Question 1: Employ

Question

Deadline Due by the end of Week 7 at 11.59 pm, ET. Directions Question 1: Employer's FICA An employee earned S50.000 during the year. F?CA tas for Social Security is 62% and FICA tax for Medicare is 1.45%. The employer's share of FICA taxes is A. Zero, since the employee's pay exceeds the FICA limit. B, Zero, since FICA is not an employer tax. C. S3,100 D. $725 E. S3,825 Question 2: Employer's FUTA Assume the FUTA tax rate is 06% and the SUTA tax rate is 54%. Both taues are applied to the first $7,000 of an employee's pay. What is the total unemployment tax an employer must pay on an employee's annual wages of $40,000? A. $2,400 B. $420 C.$42 D. S378 E Zero; the employee's wages exceed the $7,000 maximum

Explanation / Answer

Question 1

Answer is option E $3,825

50000*(6.2%+1.45%) = 50000*7.65% = 3825

Question 2

Answer is option B $420

7000*(0.6%+5.4%) = 7000*6% = 420

Question 3

Date general journal debit credit September 30 Salaries expense (given) 1400 FICA- social security taxes payable (1400*6.20%) 86.80 FICA - Medicare taxes payable (1400*1.45%) 20.30 Federal income taxes payable 217.00 Salaries payable (1400-86.80-20.30-217) 1075.90 (to record accrued payroll for September)

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