The total payroll of Waters Company for the month of October 2007 was $360,000. Taxable wages for Social Security (6.2%) were $270,000 Taxable wages for SUTA (1%) were $60,000 Taxable wages for FUTA (.8%) were $60,000 Income Tax Withheld from employee's paychecks: $90,000 Union Dues withheld from employee's paychecks: $9,000 What amount should Waters record as payroll tax expense? $118,620 O $113,040 $23,040 $28.440

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The total payroll of Waters Company for the month of October 2007 was $360,000.
Taxable wages for Social Security (6.2%) were $270,000
Taxable wages for SUTA (1%) were $60,000
Taxable wages for FUTA (.8%) were $60,000
Income Tax Withheld from employee's paychecks: $90,000
Union Dues withheld from employee's paychecks: $9,000
What amount should Waters record as payroll tax expense?
$118,620
O $113,040
$23,040
$28.440
Transcribed Image Text:The total payroll of Waters Company for the month of October 2007 was $360,000. Taxable wages for Social Security (6.2%) were $270,000 Taxable wages for SUTA (1%) were $60,000 Taxable wages for FUTA (.8%) were $60,000 Income Tax Withheld from employee's paychecks: $90,000 Union Dues withheld from employee's paychecks: $9,000 What amount should Waters record as payroll tax expense? $118,620 O $113,040 $23,040 $28.440
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