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FINANCIAL ACCOUNTING
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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Complete this question by entering your answers in the t Required A1 Required A2 Required A3 Required B1 Required What is the total payroll tax expense for Sky Company for January Note: Round your answers to 2 decimal places. January February March December ere to search Total Employer Payroll Tax Et < Required A2 < Prev. H 12 of 14 4 R ViewSonic
Transcribed Image Text:Complete this question by entering your answers in the t Required A1 Required A2 Required A3 Required B1 Required What is the total payroll tax expense for Sky Company for January Note: Round your answers to 2 decimal places. January February March December ere to search Total Employer Payroll Tax Et < Required A2 < Prev. H 12 of 14 4 R ViewSonic
Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5 Sky Company employed Tom Mills in Year 1. Tom earned $5,000 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $940 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee. Required a. Answer the following questions: 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FICA taxes? 3. What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1? b. Assume that instead of $5,000 per month Tom earned $11,200 per month. Based on this new level of income Tom's new federal income tax withholding is $2,000. Answer the following questions. 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FICA payroll taxes? 3. What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1? Complete this question by entering your answers in the tabs below. Required A1 Required A2 January February March December Required A3 Required B1 What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1? Note: Round your answers to 2 decimal places. Total Employer Payroll Tax Required B2 < Prev Required B3 # 12 of 14 HI Next > ₂) 5:41 PM
Transcribed Image Text:Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5 Sky Company employed Tom Mills in Year 1. Tom earned $5,000 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $940 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee. Required a. Answer the following questions: 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FICA taxes? 3. What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1? b. Assume that instead of $5,000 per month Tom earned $11,200 per month. Based on this new level of income Tom's new federal income tax withholding is $2,000. Answer the following questions. 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FICA payroll taxes? 3. What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1? Complete this question by entering your answers in the tabs below. Required A1 Required A2 January February March December Required A3 Required B1 What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1? Note: Round your answers to 2 decimal places. Total Employer Payroll Tax Required B2 < Prev Required B3 # 12 of 14 HI Next > ₂) 5:41 PM
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