30. Banner Company had the following payroll data for the year: $900,000 100,000 610,000 Gross earnings of employees Employee earnings not subject to Social Security tax Employee earnings not subject to FUTA or SUTA tax Assume the following: FICA tax rate on first $110,100 State Unemployment tax rate Federal Unemployment tax 7.65% (1.45% over $110,100) 5.4% .8% (SUTA) (FUTA) rate Instructions Compute Banner's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.
30. Banner Company had the following payroll data for the year: $900,000 100,000 610,000 Gross earnings of employees Employee earnings not subject to Social Security tax Employee earnings not subject to FUTA or SUTA tax Assume the following: FICA tax rate on first $110,100 State Unemployment tax rate Federal Unemployment tax 7.65% (1.45% over $110,100) 5.4% .8% (SUTA) (FUTA) rate Instructions Compute Banner's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![30. Banner Company had the following payroll data for the year:
Gross eamings of employees
Employee earnings not subject to Social Security tax
Employee earnings not subject to FUTA or SUTA tax
Assume the following:
FICA tax rate on first
$110,100
State Unemployment tax rate
Federal Unemployment tax
$900,000
100,000
610,000
7.65%
(1.45% over $110,100)
5.4%
(SUTA)
(FUTA)
.8%
rate
Instructions
Compute Banner's payroll tax expense for the year. Make a summary journal entry to
record the payroll tax expense.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F475379de-add1-47ed-ac83-41db563a8871%2Fefc0953b-a8ac-47c1-99af-e2288edff46d%2Fhssjc84_processed.jpeg&w=3840&q=75)
Transcribed Image Text:30. Banner Company had the following payroll data for the year:
Gross eamings of employees
Employee earnings not subject to Social Security tax
Employee earnings not subject to FUTA or SUTA tax
Assume the following:
FICA tax rate on first
$110,100
State Unemployment tax rate
Federal Unemployment tax
$900,000
100,000
610,000
7.65%
(1.45% over $110,100)
5.4%
(SUTA)
(FUTA)
.8%
rate
Instructions
Compute Banner's payroll tax expense for the year. Make a summary journal entry to
record the payroll tax expense.
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