Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal

Question

Amount Subject to Payroll Taxes

Unemployment Tax

Payroll

Wages Due

FICA

Federal

State

Factory

Sales

Administrative

Total

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Account Titles and Explanation

Debit

Credit

(To record salaries and wages expense.)

(To record payroll tax expense.)

(To record salaries and wages expense.)

(To record payroll tax expense.)

(To record salaries and wages expense.)

(To record payroll tax expense.)

Sweet Hardware Company’s payroll for November 2017 is summarized below.

Amount Subject to Payroll Taxes

Unemployment Tax

Payroll

Wages Due

FICA

Federal

State

Factory $121,300 $121,300 $41,100 $41,100 Sales 30,600 30,600 3,800 3,800 Administrative 37,600 37,600    Total $189,500 $189,500 $44,900 $44,900
At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $118,500 and 1.45% in excess of $118,500. Of the $189,500 wages subject to FICA tax, $19,000 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $15,500 for factory, $7,600 for sales, and $6,700 for administrative.

Explanation / Answer

Working:

Factory Sales Administrative Total Salaries and wages 121300.00 30600.00 37600.00 189500.00 FICA Taxes 9279.45 1162.90 2876.40 13318.75 FUTA Taxes 328.80 30.40 0.00 359.20 SUTA taxes 1027.50 95.00 0.00 1122.50 Total Cost 131935.75 31888.30 40476.40 204300.45

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.