Question

Assuming no employees are subject to ceilings for their earnings, Jensen Company has the following information for the pay period of January 15 - 31, 20xx. Gross payroll $10,000 Federal income tax withheld $1,800 Social security rate 6% Federal unemployment tax rate .8% Medicare rate 1.5% State unemployment tax rate 5.4% Salaries Payable would be recorded in the amount of: Group of answer choices

Answer 1

Answer: $7,450

Explanation:

Employees are not charged Federal and State unemployment taxes so Salaries payable should be;

= Gross pay - Federal Income tax withheld - Social security tax - Medicare

= 10,000 - 1,800 - (10,000 * 6%) - (10,000 * 1.5%)

= 10,000 - 1,800 - 600 - 150

= $7,450