Refer to Exercise 7B-3 and assume that the state changed News SUTA tax rate to 3.8%. What
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Refer to Exercise 7B-3 and assume that the state changed New’s SUTA tax rate to 3.8%. What effect would this change have on the total payroll tax expense?
Exercise 7B-3:
From the following information, calculate the payroll tax expense for New Company for the payroll of April 9:
The FICA tax rate for OASDI is 6.2% on the first $117,000 earned, and Medicare is 1.45% on all earnings. Federal unemployment tax is 0.6% on the first $7,000 earned by each employee. The SUTA tax rate for New is 5.9% on the first $7,000 of earnings for state unemployment purposes.
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Related Book For
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater
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