Payroll Factory Sales Administrative Total Wages Due FICA $128,000 $128,000 32,000 34,000 $194,000 $194,000 32,000 34,000 Unemployment Tax State Federal $40,000 4,000 $44,000 $40,000 4,000 $44,000 At this point in the year, some employees have already received wages in excess of those to
Payroll Factory Sales Administrative Total Wages Due FICA $128,000 $128,000 32,000 34,000 $194,000 $194,000 32,000 34,000 Unemployment Tax State Federal $40,000 4,000 $44,000 $40,000 4,000 $44,000 At this point in the year, some employees have already received wages in excess of those to
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Bramble Hardware's payroll for November is summarized below.
Payroll
Factory
Sales
Administrative
Total
(a)
Wages
FICA
Taxes
Federal
U.T.
State
U.T.
Total
Cost
$
Wages Due
$128,000 $128,000
32,000
34,000
$194,000
$
32,000
34,000
$194,000
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At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the
state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. Of the
$194,000 wages subject to FICA tax, $22,000 of the sales wages is in excess of $142,800. Federal unemployment tax rate is 0.8% after
credits. Income tax withheld amounts to $15,800 for factory, $7,000 for sales, and $6,100 for administrative.
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FICA
Prepare a schedule showing the employer's total cost of wages for November by function.
Factory
Amount Subject to Payroll Taxes
Unemployment Tax
Federal
$40,000
$
4,000
$44,000
State
$40,000
Sales
4,000
$44,000
$
$
Administrative
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$
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