Question

Pina Hardware Company’s payroll for November 2017 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $123,500 $123,500 $39,500 $39,500 Sales 30,800 30,800 4,000 4,000 Administrative 36,000 36,000    Total $190,300 $190,300 $43,500 $43,500 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 $190,300 wages subject to FICA tax, $19,100 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $15,600 for factory, $7,500 for sales, and $6,400 for administrative.

(a) Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.) Factory Sales Administrative Total Salaries and Wages $ $ $ $ FICA Taxes FUTA Taxes SUTA Taxes Total Cost $ $ $ $

Answer 1

Particulars	Factory	Sales	Adm	Total
Salaries and wages	123,500	30,800	36,000	190,300
FICA tax	9,448	1,172	2,754	13,374
FUTA tax	316	32	348	696
SUTA tax	988	100	1,088	2,175
Total	134,251	32,104	40,190	206,545