Jack, an employee of Desert Sky, Inc., has gross salary for May of $18,000. The entire amount is under the OASDI limit of $132,900 and thus subject to FICA. He is also subject to federal income tax at a rate of 25%. Which of the following is a part of the journal entry for accrual of the employer payroll taxes? (Assume a FICA—OASDI Tax of 6.2% and FICA—Medicare Tax of 1.45%.) Jack's income to date exceeds the FUTA and SUTA tax income limits.
Jack, an employee of Desert Sky, Inc., has gross salary for May of $18,000. The entire amount is under the OASDI limit of $132,900 and thus subject to FICA. He is also subject to federal income tax at a rate of 25%. Which of the following is a part of the journal entry for accrual of the employer payroll taxes? (Assume a FICA—OASDI Tax of 6.2% and FICA—Medicare Tax of 1.45%.) Jack's income to date exceeds the FUTA and SUTA tax income limits.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Jack, an employee of Desert Sky, Inc., has gross salary for May of
$18,000.
The entire amount is under the OASDI limit of $132,900 and thus subject to FICA. He is also subject to federal income tax at a rate of
25%.
Which of the following is a part of the
FICA—OASDI
Tax of
6.2%
and
FICA—Medicare
Tax of
1.45%.)
Jack's income to date exceeds the FUTA and SUTA tax income limits.
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