Question

The following is a payroll sheet for Windsor Imports for the month of September 2020. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $128,400. In addition, 1.45% is charged both employer and employee for an employee’s wages in excess of $128,400 per employee.

Answer 1

salaries expense 33600

income tax payable 3360

FICA payable 2570.4

SUTA 9

FUTA 7.2

salaries payables 27653.4

Step-by-step explanation:

accumulated current Income Tax FICA State Federal

Will 6700 800 80 61.2 3 2.4

Raye 6400 700 70 53.55 6 4.8

Baker 7500 1100 110 84.15

Lopez 13800 2000 200 153

Daniels 107800 11800 1180 902.7

Kingston 113200 17200 1720 1315.8

33600 3360 2570.4 9 7.2