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Natasha2012 [34]
2 years ago
7

The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $6,000 of an employee's pa

y. Assume that an employee earned total wages of $11,100. What is the amount of total unemployment taxes the employer must pay on this employee's wages?
A.) $688.20.
B.) $0.00.
C.) $599.40.
D.) $88.80.
E.) $372.00.
Business
1 answer:
ANTONII [103]2 years ago
6 0

Answer: E.) $372.00.

Explanation:

FUTA and SUTA are applied on the first $6,000.

FUTA Tax = 0.8% * 6,000

= $48

SUTA Tax = 5.4% * 6,000

= $324

Total Unemployment tax = 324 + 48

= $372

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According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.
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a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.

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b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

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  • Dr FICA Medicare expense 1,650
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