**Payroll Tax Calculation Problem****Scenario:**Action Travel has 10 employees, each working 40 hours per week and earning $20 an hour. Here are the tax details:- Federal income taxes are withheld at 15%- State income taxes at 6%- FICA taxes are 7.65%- Unemployment taxes are 3.8% of the first $7,000 earned per employee**Question:**What is the employer's total payroll tax expense for the first week of January?**Options:**- $1,224- $2,596- $878- $916- None of the above---This exercise helps you practice how to calculate payroll taxes including federal and state income taxes, FICA, and unemployment taxes for a set of employees.

ANSWER:- $ 916 (option 4) is correct answer $916 is the employer's total payroll tax expense for…

Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Fede income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7.000 earned per employee. What is the employer's payroll tax expense for the first week of January? $1,224. $2596. $878. $916. None of the above.

Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Fede income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7.000 earned per employee. What is the employer's payroll tax expense for the first week of January? $1,224. $2596. $878. $916. None of the above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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