An employee earned $60,600 during the year working for an employer. The Federal Insurance Contributions Act...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
An employee earned $60,600 during the year working for an employer. The Federal Insurance Contributions Act (FICA) tax rate for Social Security is 6.2% of the first $137,700 of employee earnings per calendar year, and the Federal Insurance Contributions Act (FICA) tax rate for Medicare is 1.45% of all earnings. The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay? Multiple Choice $101.50 $378.00 $0.00 $434.00 An employee earned $60,600 during the year working for an employer. The Federal Insurance Contributions Act (FICA) tax rate for Social Security is 6.2% of the first $137,700 of employee earnings per calendar year, and the Federal Insurance Contributions Act (FICA) tax rate for Medicare is 1.45% of all earnings. The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay? Multiple Choice $101.50 $378.00 $0.00 $434.00
Expert Answer:
Answer rating: 100% (QA)
Correct answer 000 Employer is liable to pay unemployment t... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
Students also viewed these accounting questions
-
An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $117,000. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for...
-
Multiple choice Questions 1. Employers pay a maximum federal unemployment tax of 6.0% on how much of an employees taxable wages for 2014? a. $1,800. b. $3,800. c. $5,800. d. $7,000. 2. Carlos has two...
-
For the tax year 2011the Social Security tax rate applied to pre-retirement employees is reduced from 6.2% to 4.2%. Compute and explain the tax savings for workers in each of the following...
-
The measured and corrected cylinder pressures around IVC (210CA) are given in the table. Find out the reference pressure ppeg (the manifold air pressure) at IVC, using 5 point half-width (n=10) for...
-
The following unadjusted trial balance is for Ace Construction Co. as of the end of its 2011 fiscal year. Required 1. Prepare a 10-column work sheet for fiscal year 2011, starting with the unadjusted...
-
Irenes Kitchen & Catering Service sells three kinds of cakessingle, double, and triple layers. The product mix is 30% single layer, 50% double layer, and 20% triple layer. The bills of material are...
-
Process Manufacturing Ltd has prepared the following fixed budget performance report for the production departments financial results during the year ended 30 June 2025. Units of production...
-
SDT Co. reports net income of $55,000. Partner salary allowances are Sweet $15,000, Drinian $5,000, and Tavros $5,000. Indicate the division of net income to each partner, assuming the income ratio...
-
Explain why accurate accounting information helps with the overall analysis of the business. Discuss how inaccurate or false information impacts the business. In your opinion, discuss the importance...
-
B52 Skate Training prepares adjustments annually and showed the following on its June 30, 2023, year-end: Additional information available at year-end: a. The Prepaid Arena Rental of $182,000 was...
-
Ambrose Corporation owns 80 percent of Kroop Company's common stock, acquired at underlying book value on January 1, 20X4. At the acquisition date, the book values and fair values of Kroop's assets...
-
Uber Technologies, Inc., is a technology company offering ride-hailing, food delivery, and other services. Uber is a major player in the gig economy, which is characterized by independent contractors...
-
A business plan is a written statement that documents the nature of a business and how that business intends to achieve its goals. Although entrepreneurs should prepare a business plan before...
-
Many small business owners find it is difficult to obtain debt financing. What can small business owners do to improve their chances of getting a loan from a bank or other financial institutions?
-
Quicken, the best-selling personal finance software in the United States, was first released in 1983 by Intuit, a financial software company. Before Quicken, people had to visit multiple websites to...
-
With more than 32,000 stores across more than 80 markets, Starbucks is the worlds largest coffeehouse chain. In 50 years of business, the company grew from a single coffee shop in Seattle to a...
-
I am learning intermediate accounting and how to account for leases. I have a question about the calculation of present value for the right to use of the lease. my example specifically has a...
-
Suppose Green Network Energy needs to raise money to finance its new manufacturing facility, but their CFO does not think the company is financially capable of making the periodic interest payments...
-
Enrietto Aquatic Products offer to acquire Fiberglass Products for $2,000,000 cash has been accepted. Enrietto has $1,000,000 of liquid assets that can be converted into cash and plans to either sell...
-
Pops Drive-Thru Burger Heaven produces and sells quarter-pound hamburgers. Each burger is wrapped and put in a burger bag, which also includes a serving of fries and a soft drink. The price for the...
-
The Oscuro Chocolate Company uses activity- based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment ......$ 108,000 Other overhead ........ $...
-
How did the Fed hit its target for the federal funds rate in the pre-2008 scarce-reserves regime?
-
Draw a demand and supply graph for the federal funds market to show the demand and supply of reserves in the current ample-reserves regime. How can the Fed increase the federal funds rate? Show the...
-
What is the zero lower bound in monetary policy? What tools can the Fed use if it wants to implement an expansionary monetary policy at the zero lower bound?
Study smarter with the SolutionInn App