Discuss blossom hardware companys payroll for november

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Reference no: EM131772005

Exercise 13-7 Blossom Hardware Company's payroll for November 2017 is summarized below.

Amount Subject to Payroll Taxes
Unemployment Tax
Payroll Wages Due FICA
Federal State
Factory $128,300 $128,300 $40,600 $40,600
Sales 34,500 34,500 4,200 4,200
Administrative 37,100 37,100    
   Total $199,900 $199,900 $44,800

$44,800


At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. Of the $199,900 wages subject to FICA tax, $21,100 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,300 for factory, $7,200 for sales, and $6,200 for administrative.

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Reference no: EM131772005

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