Question
For the current month's payroll, Atlanta Company employees have $8,000,000 in salaries. $1,200,000 of this income is for employees' first $7,000 of income. The SUT
For the current month's payroll, Atlanta Company employees have $8,000,000 in salaries. $1,200,000 of this income is for employees' first $7,000 of income. The SUT rate is $3.0% and the FUT rate is 0.6%, both on employees' first $7,000 of income. $800,000 of the total salaries are for employees whose salaries exceed $118,500. None of the salaries are for employees with incomes exceeding $200,000. Income taxes withheld are $1,600,000. $500,000 was deducted from employees' pay for health insurance and other benefits. The current FICA tax is 7.65% on salaries up to $118,500 and 1.45% on incomes between $118,500 and $200,000.
Based on the foregoing, what is the total NET salary paid by Altanta, and the total employer's payroll tax expense for the month?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started