Payroll tax expense related to this employee will be:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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• X Corp. pays its employees monthly. The payroll information for Employee Barney listed below is
for January, 2021, the first month of X's fiscal year.
Salary: $40,000
Fed. Income Tax Withheld: $8,000
Federal and State Unemployment Tax: 6%
Social Security Tax: 6.2%
Medicare Tax: 1.45%
Payroll tax expense related to this employee will be:
O $7,140
$47,140
O $40,000
O $5,460
Transcribed Image Text:• X Corp. pays its employees monthly. The payroll information for Employee Barney listed below is for January, 2021, the first month of X's fiscal year. Salary: $40,000 Fed. Income Tax Withheld: $8,000 Federal and State Unemployment Tax: 6% Social Security Tax: 6.2% Medicare Tax: 1.45% Payroll tax expense related to this employee will be: O $7,140 $47,140 O $40,000 O $5,460
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