David, an employee of Cecil, Inc, has gross salary for March of $5,900
The entire amount is under the OASDI limit of $117,000, and thus subject to FICA. He is also subject to federal income tax at a rate of 30%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry to record the employer's payroll tax expense includes a credit to FICA-OASDI Taxes Payable for $365.80. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.)
Indicate whether the statement is true or false
TRUE .FICA—OASDI Taxes Payable = $5,900 x 6.2% = $365.80
You might also like to view...
In 2016, Baloga Heating Company sold 400 water heaters for $350 each. The water heaters carry a 2-year warranty for repairs. Baloga estimates that repair costs will average 2% of the total selling price. How much is recorded in the warranty liability account as a result of selling the water heaters during 2016?
a. $4,200 b. $2,800 c. $1,400 d. No liability should be recorded until the water heaters are brought back for repairs.
The manufacturer of Fast Peddle Bikes offers a warranty that states that the gear-shifting mechanism for its product will work consistently and be free of mechanical defects for five years. This is an example of a(n) ________ warranty.
A. specific B. general C. extended D. additional E. basic
Structural determinants of power in organizations include all of the following, except:
a. Perceived political power b. Influence in garnering resources c. National representation d. Reward for subordinates
Which of the following describes an unsought product?
A. a new type of "health food" produced by a new, small company B. gravestones aimed at senior citizens C. encyclopedias aimed at new parents D. life insurance aimed at college students E. All these answers are correct.