In: Accounting
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?
F.I.C.A. tax | 62900.00 | =(960000-170000)*7.65%+(170000*1.45%) |
State unemployment tax | 3560.00 | =(960000-604000)*1% |
Federal unemployment tax | 2848.00 | =(960000-604000)*0.8% |
Payroll tax expense | 69308.00 |