Rhody44
Jan 23, 2010, 09:57 PM
Hiatt Company had the following payroll data for the year:
Gross earnings of employees $640,000
Employee earnings not subject to FICA tax 140,000
Employee earnings not subject to FUTA or SUTA tax 490,000
Assuming the following:
FICA tax rate 8%
State Unemployment tax rate 5.4% (SUTA)
Federal Unemployment tax rate .8% (FUTA)
Instructions
Compute Hiatt's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.
Gross earnings of employees $640,000
Employee earnings not subject to FICA tax 140,000
Employee earnings not subject to FUTA or SUTA tax 490,000
Assuming the following:
FICA tax rate 8%
State Unemployment tax rate 5.4% (SUTA)
Federal Unemployment tax rate .8% (FUTA)
Instructions
Compute Hiatt's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.