According to a payroll register summary of Frederickson Company, the amount of e

Question

According to a payroll register summary of Frederickson Company, the amount of employees’ gross pay in December was $875,400, of which $88,700 was not subject to Social Security taxes of 6.2% and $769,800 was not subject to state and federal unemployment taxes.

Determine the employer’s payroll tax expense for the month, using the following rates: FICA 7.65%, state unemployment 5.4%, and federal unemployment 0.8%. (Round answer to 0 decimal places, e.g. 125.)

$_______

$_______

Explanation / Answer

Gross pay 875400.00 Less Pay not subject to social security tax 88700.00 Net pay 786700.00 Social security tax 6.2% 48775.40 FICA 7.65% 60182.55 Total FICA taxes (A) 108957.95 Gross pay 875400.00 Less Pay not subject to Unemployment tax 769800.00 Net pay 105600.00 State unemployment tax @ 5.4% 5702.40 Federal unemployment tax @ 0.8% 844.80 Total unemployment tax (B) 6547.20 Total payroll taxes ( A + B) 115505.15

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