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.

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