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
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1CP: Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January...
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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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