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5 January, 09:48

The payroll register of Charbroil Company indicates $1,200 of social security tax withheld and $300 of Medicare tax withheld on total salaries of $20,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $7,000, at the federal rate of 0.8% and the state rate of 5.4%. What is the total amount of payroll tax expense? a. $1,878b. $1,500c. $1,556d. $1,934

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  1. 5 January, 10:08
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    d. $1,934

    Explanation:

    Total amount of payroll tax expense=Social security tax withheld+Medicare tax withheld + State and federal unemployment compensation taxes on earnings=1200+300+.062*7000=$1934 (d. $1,934)
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