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Wishing Well Works makes outdoor statuary, and operates in the state of Washington. Payroll taxes c FICA (8% collected from workers and 8% collected from the employers, up to an annual wage limit of $120,000), and Federal Income Tax at the flat rate of 20%. Also the FUTA tax rate is 1%, with an annu limit of $100,000. The company has only one employee who earns a monthly salary of $100,000. What dollar amount of Federal Income taxes is withheld from the employee's salary in month of January?

Wishing Well Works makes outdoor statuary, and operates in the state of Washington. Payroll taxes c FICA (8% collected from workers and 8% collected from the employers, up to an annual wage limit of $120,000), and Federal Income Tax at the flat rate of 20%. Also the FUTA tax rate is 1%, with an annu limit of $100,000. The company has only one employee who earns a monthly salary of $100,000. What dollar amount of Federal Income taxes is withheld from the employee's salary in month of January?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wishing Well Works makes outdoor statuary, and operates in the state of Washington. Payroll taxes consist of FICA (8% collected from workers and 8% collected from the employers, up to an annual wage limit of $120,000), and Federal Income Tax at the flat rate of 20%. Also the FUTA tax rate is 1%, with an annual wage limit of $100,000. The company has only one employee who earns a monthly salary of $100,000. What dollar amount of Federal Income taxes is withheld from the employee's salary in the month of January?
Transcribed Image Text:Wishing Well Works makes outdoor statuary, and operates in the state of Washington. Payroll taxes consist of FICA (8% collected from workers and 8% collected from the employers, up to an annual wage limit of $120,000), and Federal Income Tax at the flat rate of 20%. Also the FUTA tax rate is 1%, with an annual wage limit of $100,000. The company has only one employee who earns a monthly salary of $100,000. What dollar amount of Federal Income taxes is withheld from the employee's salary in the month of January?
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