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Carol Blane’s cumulative yearly earnings for the year are $29,000, counting her current pay period salary amount of $4,500. Assume the FICA tax rate is 6.2 percent for Social Security, with a limit of $106,800, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6 percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The employer's payroll tax expense entry will include a credit to: a. FICA Tax Payable for $279.00. b. FICA Tax Payable for $344.25. c. Federal Unemployment Tax Payable for $27.00. d. State Unemployment Tax Payable for $243.00. e. Federal Unemployment Tax Payable for $270.00.

Carol Blane’s cumulative yearly earnings for the year are $29,000, counting her current pay period salary amount of $4,500. Assume the FICA tax rate is 6.2 percent for Social Security, with a limit of $106,800, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6 percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The employer's payroll tax expense entry will include a credit to: a. FICA Tax Payable for $279.00. b. FICA Tax Payable for $344.25. c. Federal Unemployment Tax Payable for $27.00. d. State Unemployment Tax Payable for $243.00. e. Federal Unemployment Tax Payable for $270.00.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 4E
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Carol Blane’s cumulative yearly earnings for the year are $29,000, counting her current pay
period salary amount of $4,500. Assume the FICA tax rate is 6.2 percent for Social Security, with
a limit of $106,800, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6
percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The
employer's payroll tax expense entry will include a credit to:


a. FICA Tax Payable for $279.00.
b. FICA Tax Payable for $344.25.
c. Federal Unemployment Tax Payable for $27.00.
d. State Unemployment Tax Payable for $243.00.
e. Federal Unemployment Tax Payable for $270.00.

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