Explore BrainMass
Share

Payroll tax expense

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

** Please see the attached file for the complete problem description **

A company's employees had the following earnings records at the close of the current payroll period:
The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $84,900 plus 1.45% FICA Medicare on all wages; 0.8% federal unemployment taxes on the first $7,000; and 2.5% state unemployment taxes on the first $7,000. Compute the employer's total payroll taxes expense for the current pay period.

© BrainMass Inc. brainmass.com October 16, 2018, 11:06 pm ad1c9bdddf
https://brainmass.com/business/accounting/payroll-tax-expense-246276

Attachments

Solution Preview

** Please see the attached file for a Word formatted copy of the solution response **

We first calculate the earnings subject to tax
Employees FICA SUTA & FUTA
D. Adams ...

Solution Summary

This solution explains how to calculate the payroll tax expense for the employer in the given accounting problem.

$2.19
Similar Posting

Question about Payroll tax expense

An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the employer's payroll tax expense?

View Full Posting Details