Art Panache, the sole employee of Panache Sales, has gross salary for March of $5,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry in the payroll cycle to record employers payroll tax expense includes a credit to FICA Medicare Taxes Payable for $145. (Assume a FICA OASDI Tax of 6.2% and FICA Medicare Tax of 1.45%.)

True

False