The total payroll of Crane Company for the month of October, 2020 was $960000, of which...

The total payroll of Crane Company for the month of October, 2020 was $960000, of which $170000 represented amounts paid in excess of $119500 to certain employees. $604000 represented amounts paid to employees in excess of the $7400 maximum subject to unemployment taxes. $170000 of federal income taxes and $17200 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee’s wages to $119500 and 1.45% in excess of $119500. What amount should Crane record as payroll tax expense?

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Expert Solution

F.I.C.A. tax	62900.00	=(960000-170000)7.65%+(1700001.45%)
State unemployment tax	3560.00	=(960000-604000)*1%
Federal unemployment tax	2848.00	=(960000-604000)*0.8%
Payroll tax expense	69308.00

ekkarill92 answered 2 years ago

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