A company has 24 employees who are paid on a monthly basis. For the most recent month, gross earnings were $78,000, of which $27,000 is subject to employment taxes. The federal unemployment tax rate is .8% and the state unemployment rate is 5.4%. Federal income taxes are withheld at the rate of 20% of total earnings. All earnings are subject to FICA taxes of 8%. Refer to Case 10.2. What is the company's total payroll cost for the month? A. 101,514 B. 85,914 C. 78,000 D. 6,240 E None of the Above What is the employer's total payroll taxes expense for the month? A. 6,240 B. 12,480 C. 7,914 D. 23,514 E. None of the Above
A company has 24 employees who are paid on a monthly basis. For the most recent month, gross earnings were $78,000, of which $27,000 is subject to employment taxes. The federal unemployment tax rate is .8% and the state unemployment rate is 5.4%. Federal income taxes are withheld at the rate of 20% of total earnings. All earnings are subject to FICA taxes of 8%. Refer to Case 10.2. What is the company's total payroll cost for the month? A. 101,514 B. 85,914 C. 78,000 D. 6,240 E None of the Above What is the employer's total payroll taxes expense for the month? A. 6,240 B. 12,480 C. 7,914 D. 23,514 E. None of the Above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Case 10.2
A company has 24 employees who are paid on a monthly basis. For the most recent month, gross earnings were $78,000, of which $27,000 is subject to employment taxes. The federal
Refer to Case 10.2. What is the company's total payroll cost for the month? A. 101,514 B. 85,914 C. 78,000 D. 6,240 E None of the Above
What is the employer's total payroll taxes expense for the month? A. 6,240 B. 12,480 C. 7,914 D. 23,514 E. None of the Above
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