ACC 422-Blossom Hardware Company's payroll for November 2017
Question # 00469684
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Updated on: 01/25/2017 12:01 AM Due on: 01/25/2017
Exercise 13-7 Blossom Hardware Company's payroll for November 2017 is summarized below.
At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. Of the $199,900 wages subject to FICA tax, $21,100 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,300 for factory, $7,200 for sales, and $6,200 for administrative.
| Amount Subject to Payroll Taxes | ||||
| Unemployment Tax | ||||
| Payroll | Wages Due | FICA | Federal | State |
| Factory | $128,300 | $128,300 | $40,600 | $40,600 |
| Sales | 34,500 | 34,500 | 4,200 | 4,200 |
| Administrative | 37,100 | 37,100 | ||
| Total | $199,900 | $199,900 | $44,800 | $44,800 |
At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. Of the $199,900 wages subject to FICA tax, $21,100 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,300 for factory, $7,200 for sales, and $6,200 for administrative.
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Solution: ACC 422-Blossom Hardware Company's payroll for November 2017