Richard and Linda are the only two employces of Carolina Company. In January, 2013, Richard's gross pay was $5,500 and Linda's gross pay was $5,200. Each employee pays federal income tax equal to 25% of gross pay. In addition, Linda pays $200 for insurance premiums and Richard pays $225. Each has $25 withheld for life insurance premiums. Assume a FICA tax rate of 8% on all earnings, a federal unemployment tax rate of 0.8%, and a state nemployment tax rate of 5.4%. The unemployment taxes are based on the first $7,000 of employee annual earnings
The entry to record the payroll 'r Janary would include a
A. debt to salary payable to employees for $6,694.
B. credit to federal unemployment tax payable for $86.
C. credit to FICA tax payable for $856.
D. credit to state unemployment tax payable for $578.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Richard and Linda are the only two employces of Carolina Company. In January, 2013, Richard's gross pay was $5,500 and Linda's gross pay ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. -Sold merchandise on account for $64,000 to a customer.
Answers (1)
If commodity money was still used nowadays, what items do you think would be used as a medium of exchange? Why?
Answers (1)
Which statement is true? People throughout history have used only currency notes for financial transactions. The Reserve Banks determine tax rates. Only the Federal Reserve can buy government securities. The Federal Reserve affects monetary policy.
Answers (1)
Direct mail questionnaire should br kept to a maximum of many pages
Answers (2)
Barcain Credit Corp. wants to earn an effective annual return (EAR) on its consumer loans of 16 percent per year. If the bank uses daily compounding on its loans, what APR is the bank required by law
Answers (2)
New Questions in Business
Choose the best response for each of the following statements. a. When the Federal Reserve makes an open market purchase, the Fed: buys bonds from the public, which decreases the money supply.
Answers (1)
For Fiscal Year 2020, Precision Masters had sales of $42,900, cost of goods sold of $26,800, depreciation expense of $1,900, interest expense of $1,300, and dividends paid of $1,000.
Answers (1)
Janine is 21 years old. she opens an account that pays 4.4% interest, compounded monthly. she sets a goal of saving $10,000 by the time she is 24 years old. how much must she deposit each month?
Answers (1)
Your business is looking to rely on cloud computing services to specify the applications, security settings, and computing resources available to employees on their computer desktops. What is the term for this?
Answers (1)
What is considered the passive factor in production?
Answers (1)