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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Consider income data for three fictional nations. In Smithland, the top half of earners make $100,000 per year, while the bottom half make $20,000. Hayektopia's bottom half also make $20,000 per year, while its top half make $200,000.
Answers (1)
An advertisement that makes you worry about bad breath, body odor, or dandruff is relying on a fallacy called
Answers (1)
A company wants to have its employees sign a document that details some project-related information that should not be discussed outside the project's team members. What type of document should they use? A. AUP B. NDA C. MDM D. BYOD
Answers (1)
This employer has been advised by their benefits broker to install a voluntary benefits program. Employees will be offered the chance to purchase various types of cancer insurance and dread disease policies.
Answers (1)
Which of the following is not true regarding Depreciation? Group of answer choices Depreciation allocates the cost of a fixed asset over its estimated life. Depreciation expense reflects the decrease in market value each year.
Answers (2)
New Questions in Business
Henry Hobbs, age 51, has compensation of $72,000. The normal retirement age for his 457 (b) plan is age 62. Henry has unused deferrals totaling $21,000 as of January 1, 2019. How much can Henry defer into his 457 (b) public plan for 2019?
Answers (1)
According to your text, managers today must learn to transcend paradox. What is a paradox?
Answers (1)
Property, plant, and equipment and intangible assets are
Answers (1)
Beridze manufacturing expects to produce 2,400 units in january and 3,700 units in february. beridze budgets $45 per unit for direct materials.
Answers (1)
In organizations where a majority of workers perform repetitive operations, there is often a lack of ... Group of answer choices a management hierarchy. administrative oversight. purpose. job security.
Answers (1)