Question
Pina Hardware Companys payroll for November 2017 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $124,400
Pina Hardware Companys payroll for November 2017 is summarized below.
Amount Subject to Payroll Taxes | ||||||||
Unemployment Tax | ||||||||
Payroll | Wages Due | FICA | Federal | State | ||||
Factory | $124,400 | $124,400 | $36,900 | $36,900 | ||||
Sales | 31,100 | 31,100 | 3,900 | 3,900 | ||||
Administrative | 37,200 | 37,200 | ||||||
Total | $192,700 | $192,700 | $40,800 | $40,800 |
At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employees wages to $118,500 and 1.45% in excess of $118,500. Of the $192,700 wages subject to FICA tax, $20,200 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,300 for factory, $6,900 for sales, and $5,800 for administrative.
Prepare a schedule showing the employers total cost of wages for November by function.
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