During one pay period, Star Valley Company distributes $137,500 to employees as net pay. The income tax withholdings were $20,400 and the FICA withholdings were $9,042. Total payroll costs to the company for this pay period, excluding any unemployment taxes, was: Multiple Choice $166,942. $137,500. $157,900.

During one pay period, Star Valley Company distributes $137,500 to employees as net pay. The income tax withholdings were $20,400 and the FICA withholdings were $9,042. Total payroll costs to the company for this pay period, excluding any unemployment taxes, was: Multiple Choice $166,942. $137,500. $157,900.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 1PB

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On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned 14,960, its truck driver employees had earned 10,692, and its office employees had earned 8,670. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, 3,975, and union dues, 560. Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. Round amounts to the nearest penny.
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Peyton Company's payroll for the year is$737,910. Of this amount, 472,120 is for wages paid in excess of of 7,000 to each individual employee. The SUTA rate in Peyton Company's state is 2.9% on the first 7,000 of each employees earnings.. Computte a. Net FUTA tax b. Net SUTA tax c. Total Unemployment taxes
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