Cheyenne Hardware payroll for November 2020 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $124,200 $124,200 $36,400 $36,400 Sales 34,700 34,700 3,900 3,900 Administrative 37,700 37,700 Total $196,600 $196,600 $40,300 $40,300 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $196,600 wages subject to FICA tax, $18,000 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,000 for factory, $7,400 for sales, and $6,400 for administrative.
Cheyenne Hardware payroll for November 2020 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $124,200 $124,200 $36,400 $36,400 Sales 34,700 34,700 3,900 3,900 Administrative 37,700 37,700 Total $196,600 $196,600 $40,300 $40,300 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $196,600 wages subject to FICA tax, $18,000 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,000 for factory, $7,400 for sales, and $6,400 for administrative.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cheyenne Hardware payroll for November 2020 is summarized below.
At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $196,600 wages subject to FICA tax, $18,000 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,000 for factory, $7,400 for sales, and $6,400 for administrative.
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Amount Subject to Payroll Taxes
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||||||||
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||||||||
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Payroll
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Wages Due
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FICA
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Federal
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State
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||||
| Factory | $124,200 | $124,200 | $36,400 | $36,400 | ||||
| Sales | 34,700 | 34,700 | 3,900 | 3,900 | ||||
| Administrative | 37,700 | 37,700 | ||||||
| Total | $196,600 | $196,600 | $40,300 | $40,300 |
At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $196,600 wages subject to FICA tax, $18,000 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,000 for factory, $7,400 for sales, and $6,400 for administrative.
(a)
Partially correct answer icon
Your answer is partially correct.
Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.)
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Factory
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Sales
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Administrative
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Total
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|||||
| Salaries and Wages | $ | $ | $ | $ | ||||
| FICA Taxes | ||||||||
| FUTA Taxes | ||||||||
| SUTA Taxes | ||||||||
| Total Cost | $ | $ | $ | $ |
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