Old MathJax webview

QUESTION 44 Watters, Inc. incurred salaries expense of $145,000 for June, 2021. The payroll tax expense includes employer FICA tax (6.2% for Social Security and 1.45% for Medicare), state unemployment tax (5.4%) and federal unemployment tax (0.60%). Year-to-date earnings for any individual employee do not exceed $118,500. Of the total salaries, $44,500 is subject to unemployment tax. Remember that the FUTA rate is 0.6% while the SUTA rate is 5.4%. The company provides the following benefits for employees: health insurance (cost to the company, $4,750 and cost to employees, $1,400), life insurance (cost to the company, $850 and cost to employees $340), and retirement benefits (cost to the company, $14,500 and contributions by employees of $8,250). The employees also contributed $1,000 to Main Street Mission. Finally, the federal income tax on the employees salaries was $22,400 and the state income tax withheld was $8,700. Dad QUESTION 44 Watters, Inc. incurred salaries expense of $145,000 for June, 2021. The payroll tax expense includes employer FICA tax (6.2% for Social Security and 1.45% for Medicare), state unemployment tax (5.4%) and federal unemployment tax (0.60%). Year-to-date earnings for any individual employee do not exceed $118,500. Of the total salaries, $44,500 is subject to unemployment tax. Remember that the FUTA rate is 0.6% while the SUTA rate is 5.4%. The company provides the following benefits for employees: health insurance (cost to the company, $4,750 and cost to employees, $1,400), life insurance (cost to the company, $850 and cost to employees $340), and retirement benefits (cost to the company, $14,500 and contributions by employees of $8,250). The employees also contributed $1,000 to Main Street Mission. Finally, the federal income tax on the employees salaries was $22,400 and the state income tax withheld was $8,700. Dad