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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
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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