Question

Wildhorse Hardware payroll for November 2020 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $121,300 $121,300 $36,400 $36,400 Sales 34,200 34,200 3,800 3,800 Administrative 32,700 32,700    Total $188,200 $188,200 $40,200 $40,200 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $188,200 wages subject to FICA tax, $22,000 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $15,200 for factory, $6,900 for sales, and $6,000 for administrative.

(a) Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.) Factory Sales Administrative Total Salaries and Wages $ $ $ $ FICA Taxes FUTA Taxes SUTA Taxes Total Cost $ $ $ $

Answer 1

FACTORY SALES ADMINISTRATIVE TOTAL SALARIES AND WAGES 121300 34200 32700 188200 FICA TAXES 9279 1252 2502 13033 FUTA TAXES 291 30 321 SUTA TAXES 910 95 1005 TOTAL COST 131780 35577 35202