Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $8,500, all of which is taxable. The amount of federal income taxes withheld each month is $1,040. Journalize the payment of wages, and record the payroll tax on November 29.
Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $8,500, all of which is taxable. The amount of federal income taxes withheld each month is $1,040. Journalize the payment of wages, and record the payroll tax on November 29.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last
quarter of the year, his employees earned monthly wages of $8,500, all of which is taxable. The amount
of federal income taxes withheld each month is $1,040. Journalize the payment of wages, and record
the payroll tax on November 29.
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