Question

Assuming no employees are subject to ceilings for their earnings, Moore Company has the following information for the pay period of December 15 - 31, 20xx. Gross payroll $18,000 Federal income tax withheld $4,000 Social security rate 6% Federal unemployment tax rate .8% Medicare rate 1.5% State unemployment tax rate 5.4% Salaries Payable would be recorded for

Answer 1

Answer:

$12,650

Explanation:

Given that,

Gross payroll = $18,000

Federal income tax withheld = $4,000

Social security rate = 6%

Federal unemployment tax rate = 0.8%

Medicare rate = 1.5%

State unemployment tax rate = 5.4%

Salaries payable would be recorded:

= Gross Payroll - Social Security tax - Medicare tax - Federal Income tax withheld

= $18,000 - ($18,000 × 6%) - (18,000 × 1.5%) - $4,000

= $18,000 - $1,080 - $270 - $4,000

= $12,650