Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A:$18,960 B:$75,360 C:$15,360 D:$79,080 The total payroll of Peace Company for the month of October, 20X1 was $240,000. FICA tax of 7.65% is charged on

image text in transcribed

A:$18,960 B:$75,360 C:$15,360 D:$79,080

The total payroll of Peace Company for the month of October, 20X1 was $240,000. FICA tax of 7.65% is charged on an employee's wages up to $76,200 and 1.45% in excess of $76,200. What amount should Peace record as payroll tax expense? $ 60,000 6,000 1.0% Federal income taxes withheld Union dues withheld State unemployment tax rate Federal unemployment tax rate Wages paid in excess of maximum subject to unemployment taxes Wages paid in excess of maximum subject to FICA taxes 0.8% $ 200,000 $ 60,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: Graham W. Cosserat, Neil Rodda

3rd Edition

0470319739, 9780470319734

More Books

Students also viewed these Accounting questions