Question
The following information about the payroll for the week ended July 17 was obtained from the records of Anaconda Mining Co. Salaries: Deductions: Sales salaries
The following information about the payroll for the week ended July 17 was obtained from the records of Anaconda Mining Co.
Salaries: |
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| Deductions: |
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| Sales salaries | $472,500 |
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| Income tax withheld | $147,000 |
| Warehouse salaries | 277,500 |
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| U.S. saving bonds | 22,500 |
| Office salaries | 187,500 |
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| Group insurance | 18,750 |
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| $937,500 |
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Tax rates assumed: |
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| FICA tax, 7.5% of employee annual earnings |
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| State unemployment(employer only) , 4.2% |
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| Federal unemployment (employer only), 0.8% |
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1. For the July 17 payroll, determine the employee FICA tax payable.
2. Determine the following amounts for the employer payroll taxes related to the July 17 payroll: (a) FICA tax payable, (b) state unemployment tax payable, and (c) federal unemployment tax payable.
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