Jason's gross pay for the week is $1,800. His year−to−date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6% and that Jason's year−to−date pay has not yet exceeded the $7,000 cap. What is the total amount of payroll taxes that his employer must record as payroll tax expenses? (Do not round your intermediate calculations. Assume a FICA—OASDI Tax of 6.2% and FICA—Medicare Tax of 1.45%.)
Jason's gross pay for the week is $1,800. His year−to−date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6% and that Jason's year−to−date pay has not yet exceeded the $7,000 cap. What is the total amount of payroll taxes that his employer must record as payroll tax expenses? (Do not round your intermediate calculations. Assume a FICA—OASDI Tax of 6.2% and FICA—Medicare Tax of 1.45%.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Jason's gross pay for the week is
$1,800.
His
year−to−date
pay is under the limit for OASDI. Assume that the rate for state and federal
6%
and that Jason's
year−to−date
pay has not yet exceeded the
$7,000
cap. What is the total amount of payroll taxes that his employer must record as payroll tax expenses? (Do not round your intermediate calculations. Assume a
FICA—OASDI
Tax of
6.2%
and
FICA—Medicare
Tax of
1.45%.)
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