Sunland Company's payroll for December 2017 is summarized below.  

 

The far left column is

Wages

FICA

Federal UT

State UT

Total cost

Transcribed Image Text:

Sunland Company's payroll for December 2017 is summarized below. Amount Subject to Unemployment Taxes Payroll Wages Due Federal State Headquarters $214,000 $28,000 $7,000 Sales Office #1 58.000 7,000 2,000 Sales Office #2 48,000 4,000 1,000 Total $320,000 $39,000 $10,000 The state unemployment tax rate is 5.5%. However, Sunland receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee's wages to $142,000 and 1.45% in excess of $142,000. Of the $320,000 wages potentially subject to FICA tax, the following amounts are in excess of $142,000. Headquarters $22,000 Sales Office #1 24,000 Sales Office #2 19,000 The federal unemployment tax rate is 0.8% after credits. Income and payroll tax withheld amount to $24,000 for headquarters, $8.000 for sales office #1, and $7,800 for sales office #2. Sunland Company's payroll for December 2017 is summarized below. Amount Subject to Unemployment Taxes Payroll Wages Due Federal State Headquarters $214,000 $28,000 $7,000 Sales Office #1 58.000 7,000 2,000 Sales Office #2 48,000 4,000 1,000 Total $320,000 $39,000 $10,000 The state unemployment tax rate is 5.5%. However, Sunland receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee's wages to $142,000 and 1.45% in excess of $142,000. Of the $320,000 wages potentially subject to FICA tax, the following amounts are in excess of $142,000. Headquarters $22,000 Sales Office #1 24,000 Sales Office #2 19,000 The federal unemployment tax rate is 0.8% after credits. Income and payroll tax withheld amount to $24,000 for headquarters, $8.000 for sales office #1, and $7,800 for sales office #2.

Answer rating: 100% (QA)

A B D E F 1 2 Subject to Unemployment Tax 3 Wages Due 214000 58... View the full answer