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    Baker Company Payroll Tax Expense

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    Baker Company has three employees. Its payroll information is given below
    Employee Earning prior October
    To October earnings

    John $78,200 $11,230
    Alice 6,430 $1,280
    Frank 3,060 1,210

    Assume that the following tax rates are currently in effect.

    Tax rate ceiling
    FICA:
    OASDI 6.2% $97,500
    MEDICARE 1.45% NO CELLING
    FUTA 2.6% 7,000
    SUTA 3.6% 7,000

    Required: Compute Baker Company's payroll tax expense for October.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:16 pm ad1c9bdddf
    https://brainmass.com/business/accounting/baker-company-payroll-tax-expense-222931

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    Baker Company has three employees. Its payroll information is given below
    Employee Earning prior October
    To October earnings

    John $78,200 $11,230
    Alice 6,430 $1,280
    Frank 3,060 ...

    Solution Summary

    The solution explains how to calculate the amount of payroll tax expense

    $2.19

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