K David, an employee of Cecil, Inc., has gross salary for March of $5,900. The entire amount is under the OASDI limit of $132,900, and thus subject to FICA. He is also subject to federal income tax at a rate of 30%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry to record the employer's payroll tax expense includes a credit to FICA - OASDI Taxes Payable for $365.80. (Assume a FICA - OASDI Tax of 6.2% and FICA - Medicare Tax of 1.45%.) True False

David, an employee of Cecil, Inc., has gross salary for March of \$5,900. The entire amount is under the OASDI limit of $132,900, and thus subject to FICA. He is also subject to federal income tax at a rate of 30%. His year - to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry to record the employer's payroll tax expense includes a credit to FICA - OASDI Taxes Payable for $365.80. (Assume a FICA - OASDI Tax of 6.2% and FICA - Medicare Tax of 1.45%.) True False