Joe, an employee of Time Travel, Inc, has gross salary for March of $5,200

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 29%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry to record employer's payroll tax expense includes a credit to FICA-Medicare Taxes Payable for $150.80. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.)
Indicate whether the statement is true or false


FALSE .FICA—Medicare Tax Payable = $5,200 x 1.45% = $75.40

Business

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Answer the following statements true (T) or false (F)

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Business

Which of the following is true of a firm that has high market dependence?

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Business