Question
Donaruma Investments Incorporated has 5 employees who are paid one week after the week they work. The following information is available. Employee Earnings as of
Donaruma Investments Incorporated has 5 employees who are paid one week after the week they work. The following information is available.
| Employee | Earnings as of September 1 | Earnngs for Week Ended Setember 8 |
| Almeida | $136,500 | $3,500 |
| Curotto | $116,000 | $1,500 |
| Forte | $27,300 | $700 |
| LaMarca | $6,400 | $400 |
| Pidgeon | $1,700 | $300 |
| Totals | $287,900 | $6,400 |
For this year, the Medicare FICA tax rate is 1.45% of each employees gross pay. Calculate the companys payroll taxes expense for Medicare FICA taxes for the week ended September 8.
| a. | $183.60 | |
| b. | $4,174.55 | |
| c. | $92.80 | |
| d. | $42.05 | |
| e. | $20.03 |
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Cost And Management Audit
Authors: Dr Veena Soni
1st Edition
6202551992, 978-6202551991
