Question 31 options: Liliac\'s has 5 sales employees, each of whom earns $4,000

Question

Question 31 options:
Liliac's has 5 sales employees, each of whom earns $4,000 per month and is paid on the last working day of the month. The employer payroll taxes for Lilac's include FICA taxes, federal unemployment taxes of 0.8% of the first $7,000 paid each employee, and state unemployment taxes of 4.0% of the first $7,000 paid to each employee. $1,240 of FICA - Social Security taxes and $290 of FICA - Medicare Taxes were withheld from the employees' paychecks. Assume that none of the employees has reached the unemployment limit of $7,000.

Type in the amount of that should be debited to Payroll Taxes Expense in the entry to record Lilac's payroll taxes. Be sure to omit any dollar signs ($), commas, and decimal points. Round your answer to the nearest dollar.

Explanation / Answer

960

Federal unemployment tax 160 (0.8% of 5 X 4000)

State Unemployment tax 800 (4.0% of 5 X 4000)

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