The following totals for the month of February were taken from the payroll regis

Question

The following totals for the month of February were taken from the payroll register of Arcon Company: salaries expenses 13,000 social security and merchandise taxes withheld 975 income taxes withheld2,600 retirement savings 500 salaries subject to federal and state unemployment taxes of 6.2% 4,000. How much is the total payroll tax expense for Arcon Company for this payroll? The following totals for the month of February were taken from the payroll register of Arcon Company: salaries expenses 13,000 social security and merchandise taxes withheld 975 income taxes withheld2,600 retirement savings 500 salaries subject to federal and state unemployment taxes of 6.2% 4,000. How much is the total payroll tax expense for Arcon Company for this payroll?

Explanation / Answer

Total payroll expense:

$13,000 salaries + $975 matching social security and medicare taxes + $248 ($4,000 x 6.2%) unemployment taxes

= $14,223

Total payroll expense is not expected to stay the same every month. The salaries subject to unemployment taxes should soon be zero and it is possible that some employees may exceed the limit for social security tax before the year ends, so total payroll expense should decrease.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.