Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The payroll of Olsen Company for December 2023 is as follows: Total payroll was $800,000, of which $380,000 represents amounts paid in excess of $118,500

The payroll of Olsen Company for December 2023 is as follows: Total payroll was $800,000, of which $380,000 represents amounts paid in excess of $118,500 to certain employees. Income taxes in the amount of $210,000 were withheld, as was $20,000 for employee dependent insurance and $3,000 for union dues. Assume that the FICA tax is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. The amount paid to employees in excess of $7,000 was $700,000. State and Federal Unemployment Taxes are only paid on the first $7,000 paid to individual employees. The State Unemployment Tax rate is 3.6%, but Olsen Company is allowed a credit of 1.4% by the state for its unemployment experience. The Federal Unemployment Tax rate is .9% after state credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud examination

Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma

4th edition

538470844, 978-0538470841

More Books

Students also viewed these Accounting questions