Gilpin, Inc.'s payroll for November 2020 is summarized as follows: Amount of Wages Subject to Payroll Taxes Total Wages Federal Income Tax Withheld F.I.C.A. Unemployment $653,000 $127,200 $590,000 $74,000 The FICA rate is 7.65% each for the employer and the employee. Gilpin is subject to a total unemployment tax rate of 3.5%. What amount should Gilpin report as its liability for the employer's share of payroll taxes (exclude the employee's share) on its balance sheet as of November 30, 2020?
Gilpin, Inc.'s payroll for November 2020 is summarized as follows: Amount of Wages Subject to Payroll Taxes Total Wages Federal Income Tax Withheld F.I.C.A. Unemployment $653,000 $127,200 $590,000 $74,000 The FICA rate is 7.65% each for the employer and the employee. Gilpin is subject to a total unemployment tax rate of 3.5%. What amount should Gilpin report as its liability for the employer's share of payroll taxes (exclude the employee's share) on its balance sheet as of November 30, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gilpin, Inc.'s payroll for November 2020 is summarized as follows:
| Amount of Wages Subject to Payroll Taxes | |||
| Total Wages | Federal Income Tax Withheld | F.I.C.A. | |
| $653,000 | $127,200 | $590,000 | $74,000 |
The FICA rate is 7.65% each for the employer and the employee.
Gilpin is subject to a total unemployment tax rate of 3.5%.
What amount should Gilpin report as its liability for the employer's share of payroll taxes (exclude the employee's share) on its
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