E3-7 Payroll taxes Davis, Inc. paid wages to its employees during the year as follows: Anderson.......

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E3-7 Payroll taxes Davis, Inc. paid wages to its employees during the year as follows: Anderson.... $ 15,400 Bates.... 16,700 Chavez..... 13,000 Devon...... 23,300 Estevez..... 33,200 Franco... 56,100 Gordon.. 66,700 Haile....... 122,000 a. How much of the total payroll is exempt from the FICA rate of 8%? b. How much of the total payroll is exempt from federal and state unemployment taxes? c. How much of the total payroll is exempt from federal income tax withholding? Critical Thinking Problem E3-7 Payroll taxes Davis, Inc. paid wages to its employees during the year as follows: Anderson.... $ 15,400 Bates.... 16,700 Chavez..... 13,000 Devon...... 23,300 Estevez..... 33,200 Franco... 56,100 Gordon.. 66,700 Haile....... 122,000 a. How much of the total payroll is exempt from the FICA rate of 8%? b. How much of the total payroll is exempt from federal and state unemployment taxes? c. How much of the total payroll is exempt from federal income tax withholding? Critical Thinking Problem

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Answer a FICA Exempt Payroll FICA taxes are applied to a maximum wage base that gets adjusted each y... View the full answer