Question

Use this information for Harris Company to answer the following questions.
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Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31.
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   Gross payroll $10,000 Federal income tax withheld $1,800 Social security rate 6.0% Federal unemployment tax rate 0.8% Medicare rate 1.5% State unemployment tax rate 5.4%\begin{array} { l r l c } 	ext { Gross payroll } & \$ 10,000 & 	ext { Federal income tax withheld } & \$ 1,800 \	ext { Social security rate } & 6.0 \% & 	ext { Federal unemployment tax rate } & 0.8 \% \	ext { Medicare rate } & 1.5 \% & 	ext { State unemployment tax rate } & 5.4 \%\end{array} Gross payroll  Social security rate  Medicare rate ​$10,0006.0%1.5%​ Federal income tax withheld  Federal unemployment tax rate  State unemployment tax rate ​$1,8000.8%5.4%​  ​
-Assuming that all wages are subject to federal and state unemployment taxes, the employer's payroll tax expense would be

Accepted Answer

A)   $1,370
B)   $750
C)   $620
D)   $2,870 E) B) and C)
F) A) and D)

Exam 11: Current Liabilities and Payroll

Correct Answer
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Exam 11: Current Liabilities and Payroll

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Correct Answer
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