Joel, an employee of Cruise Travel, Inc., has gross salary for March of $5,200. 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 29%. His year−to−date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry to record employer's payroll tax expense includes a credit to FICA−Medicare Taxes Payable for $150.80. (Assume a FICA−OASDI Tax of 6.2% and FICA−Medicare Tax of 1.45%.) T or F
Joel, an employee of Cruise Travel, Inc., has gross salary for March of $5,200. 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 29%. His year−to−date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry to record employer's payroll tax expense includes a credit to FICA−Medicare Taxes Payable for $150.80. (Assume a FICA−OASDI Tax of 6.2% and FICA−Medicare Tax of 1.45%.) T or F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Joel, an employee of Cruise Travel, Inc., has gross salary for March of $5,200. 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 29%. His
year−to−date
pay has already exceeded the $7,000 cap for FUTA and SUTA. The
FICA−Medicare
Taxes Payable for $150.80. (Assume a
FICA−OASDI
Tax of 6.2% and
FICA−Medicare
Tax of 1.45%.)
T or F
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