Ask Question
28 November, 01:50

The total payroll of Trolley Company for the month of October, 2014 was $800,000, of which $150,000 represented amounts paid in excess of $106,800 to certain employees. $500,000 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $150,000 of federal income taxes and $15,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is. 8%, and the current F. I. C. A. tax is 7.65% on an employee's wages to $106,800 and 1.45% in excess of $106,800. The net amount of salary paid for the period is?

+5
Answers (1)
  1. 28 November, 02:11
    0
    The net amount of salary paid for the period is $583,100

    Explanation:

    The computation of the net salary paid is shown below:

    = Total Payroll - Social security taxes - medicare taxes - federal income taxes - union dues

    where,

    Total payroll is $800,000

    Social security tax = (payroll - excess amount) * rate

    = ($800,000 - $150,000) * 6.2%

    = $40,300

    The tax rate is 12.4 % which is contributed by employers and employees.

    The half is borne by the employee and the other half is born by the employer

    Medicare expense = Payroll * tax rate

    = $800,000 * 1.45%

    = $11,600

    The other amounts would remain the same

    Now put these values to the above formula

    So, the value would equal to

    = $800,000 - $40,300 - $11,600 - $150,000 - $15,000

    = $583,100
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The total payroll of Trolley Company for the month of October, 2014 was $800,000, of which $150,000 represented amounts paid in excess of ...” 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