Cado Co.'s payroll for the month ended January 31 is summarized as follows:Total wages $100,000Amount of wages subject to payroll taxes:FICA 80,000Unemployment 20,000Payroll tax rates:FICA for employer and employee 7% eachUnemployment 3%In its January 31 balance sheet, what amount should Cado accrue as its share of payroll taxes? A. $6,200B. $10,000C. $11,800D. $17,000

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Business

Precious Francis

30 July, 09:16

Cado Co.'s payroll for the month ended January 31 is summarized as follows:Total wages $100,000Amount of wages subject to payroll taxes:FICA 80,000Unemployment 20,000Payroll tax rates:FICA for employer and employee 7% eachUnemployment 3%In its January 31 balance sheet, what amount should Cado accrue as its share of payroll taxes? A. $6,200B. $10,000C. $11,800D. $17,000

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Emmy Morton · Answer 1

A. $6,200

Explanation:

We multiply the taxable wages by the tax rate of each tax.

FICA 80,000 x 7% = 5,600

Unemployment 20,000 x 3% = 600

This will be share of Cado in the payroll taxes. 6,200

The total taxes, would include the employee FICA. but we aren't asked for that. Just for the employee