Ask Question
Yesterday, 06:10

Lee Company has the following information for the pay period of December 15-31: Gross payroll $16,000 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% Assuming no employees are subject to ceilings for taxes on their earnings, Salaries Payable would be recorded for a. $16,000 b. $11,040 c. $9,808 d. $10,800

+2
Answers (1)
  1. Yesterday, 06:34
    0
    Answer: $10,800

    Explanation:

    In the above scenario it is worthy of note that the company is the one that pays for Federal and State Unemployment tax.

    That means that the employees pay for Federal income tax withheld at $4,000, Social security at 6% and Medicare at 1.5%.

    Calculating salaries payable therefore would be,

    = 16,000 - 4,000 - (16,000 * 6%) - (16,000 * 1.5%)

    = $10,800

    Salaries Payable would be recorded at $10,800.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Lee Company has the following information for the pay period of December 15-31: Gross payroll $16,000 Federal income tax withheld $4,000 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers