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    Rhody44's Avatar
    Rhody44 Posts: 2, Reputation: 1
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    #1

    Jan 23, 2010, 09:57 PM
    Hiatt Company had the following payroll data for the year:
    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.
    Clough's Avatar
    Clough Posts: 26,677, Reputation: 1649
    Uber Member
    		  
    #2

    Jan 24, 2010, 12:56 AM
    Hi, Rhody44!

    Are you looking for a direct answer to your question, or for someone to to show you how to come up with the correct answer on your own, please?

    If it is the former, please click on the following link.

    https://www.askmehelpdesk.com/financ...-b-u-font.html

    Thanks!
    Rhody44's Avatar
    Rhody44 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 24, 2010, 08:49 AM

    I think I am missing something... here is my attempt --
    Debit Payroll Tax Expense $49,300
    Creidt FICA $40,000
    Credit FUTA $1,200
    Credit SUTA$8,100
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 25, 2010, 04:19 PM
    Rhody:

    You are missing the point!

    We do not answer homework problems on this forum; it defeats the purpose of going to school (which is to LEARN).

    Study hard and work it out yourself. If you go into tax work in real life, you will expected to know HOW to answer these type of problems.
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