Carol Blane’s cumulative yearly earnings for the year are $29,000, counting her current pay period salary amount of $4,500. Assume the FICA tax rate is 6.2 percent for Social Security, with a limit of $106,800, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6 percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The employer's payroll tax expense entry will include a credit to: a. FICA Tax Payable for $279.00. b. FICA Tax Payable for $344.25. c. Federal Unemployment Tax Payable for $27.00. d. State Unemployment Tax Payable for $243.00. e. Federal Unemployment Tax Payable for $270.00.
Carol Blane’s cumulative yearly earnings for the year are $29,000, counting her current pay period salary amount of $4,500. Assume the FICA tax rate is 6.2 percent for Social Security, with a limit of $106,800, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6 percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The employer's payroll tax expense entry will include a credit to: a. FICA Tax Payable for $279.00. b. FICA Tax Payable for $344.25. c. Federal Unemployment Tax Payable for $27.00. d. State Unemployment Tax Payable for $243.00. e. Federal Unemployment Tax Payable for $270.00.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Carol Blane’s cumulative yearly earnings for the year are $29,000, counting her current pay
period salary amount of $4,500. Assume the FICA tax rate is 6.2 percent for Social Security, with
a limit of $106,800, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6
percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The
employer's payroll tax expense entry will include a credit to:
a. FICA Tax Payable for $279.00.
b. FICA Tax Payable for $344.25.
c. Federal
d. State Unemployment Tax Payable for $243.00.
e. Federal Unemployment Tax Payable for $270.00.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education