Advanced Computer Repair incurred salaries expense of $84,000for 2024. The payroll tax expense includes employer FICA tax, state unemployment tax, and federal unemployment tax. Year−to−date earnings do not exceed $132,900. Of the total salaries, $11,000 is subject to unemployment tax.Currently, state unemployment tax is 5.4% and federal unemployment tax is 0.6%. Also, the company provides the following benefits for employees: health insurance (cost to the company,$2,500), life insurance (cost to the company,$890), and retirement benefits (cost to the company, 5% of salaries expense). What is the amount of the employer payroll tax expense for the year? a. $7,086 b. $14,676 c. $6,700 d. $7,590
Advanced Computer Repair incurred salaries expense of $84,000for 2024. The payroll tax expense includes employer FICA tax, state unemployment tax, and federal unemployment tax. Year−to−date earnings do not exceed $132,900. Of the total salaries, $11,000 is subject to unemployment tax.Currently, state unemployment tax is 5.4% and federal unemployment tax is 0.6%. Also, the company provides the following benefits for employees: health insurance (cost to the company,$2,500), life insurance (cost to the company,$890), and retirement benefits (cost to the company, 5% of salaries expense). What is the amount of the employer payroll tax expense for the year? a. $7,086 b. $14,676 c. $6,700 d. $7,590
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Advanced Computer Repair incurred salaries expense of $84,000for 2024. The payroll tax expense includes employer FICA tax, state unemployment tax, and federal unemployment tax. Year−to−date earnings do not exceed $132,900. Of the total salaries, $11,000 is subject to unemployment tax.Currently, state unemployment tax is 5.4% and federal unemployment tax is 0.6%. Also, the company provides the following benefits for employees: health insurance (cost to the company,$2,500), life insurance (cost to the company,$890), and retirement benefits (cost to the company, 5% of salaries expense). What is the amount of the employer payroll tax expense for the year?
a. $7,086
b. $14,676
c. $6,700
d. $7,590
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