Answered: What amount should Goodensnake Ranch…

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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The total payroll of Goodensnake Ranch for the month of March 2023 was $900,000, of which $150,000 represented amounts paid in excess of $142,800 to certain employees. $500,000 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $180,000 of federal income taxes and $18,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee’s wages to $142,800 and 1.45% in excess of $142,800. What amount should Goodensnake Ranch record as payroll tax expense?

a. $66,750

b. $98,100

c. $76,050

d. $264,750

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