Total payroll = $400,000 of which $50,000 is exempt from social security since it represents

amounts in excess of the social security limit for the year. $300,000 represents amounts paid to employees in excess of 7,000. Income tax withheld = $80,000, union dues = $10,000. The SUTA rate is 2%, and the FUTA rate is .6%. Social security rate is 6.2%, Medicare rate is 1.45%. Prepare the payroll entry(s) and note the debit to payroll tax expense.

.

Question 16 options:

a)

$27,500.

b)

$30,100

c)

$31,000.

d)

$35,300.