The Total Payroll of Waters Company for the Month of October

question 23

Multiple Choice

The total payroll of Waters Company for the month of October, 2007 was $360,000, of which $90,000 represented amounts paid in excess of $90,000 to certain employees.$300,000 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes.$90,000 of federal income taxes and $9,000 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 $90,000 and 1.45% in excess of $90,000.What amount should Waters record as payroll tax expense?

• A)$118,620.
• B)$113,040.
• C)$23,040.
• D)$28,440.

---

Definitions:

Member Unions

Organizations that belong to a larger federation or confederation of labor unions, representing various sectors or professions.

Represent

To act or speak officially for someone or something, especially in a legal or political context.

AFL-affiliated Unions

Unions that are members of the American Federation of Labor (AFL), a national federation of labor unions in the United States.

Women

Adult human females, often highlighted in discussions about gender equality, workforce participation, and rights.