Massimini Company Had the Following Payroll Data for the Year

question 173

Essay

Massimini Company had the following payroll data for the year: $\begin{array}{lr}\text { Gross earnings of employees } & \$ 740,000 \\\text { Employee earnings not subject to Social Security tax } & 140,000 \\\text { Employee earnings not subject to FUTA or SUTA tax } & 490,000\end{array}$

Assuming the following:
$\begin{array}{lrl}\text { FICA tax rate on first } \$ 117,000 & 7.65 \% \text { (1.45\% over } \\\$ 117,000) & \\\text { State Unemployment tax rate } & 5.4 \% \quad \text { (SUTA) } \\\text { Federal Unemplovment tax rate } & 8 \% \text { (FUTA) }\end{array}$ Instructions
Compute Massimini's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.

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Definitions:

Dissonance Levels

A term used to describe the amount of conflict or inconsistency between an individual's beliefs, attitudes, or behaviors, leading to a state of psychological discomfort.

Initial Impressions

The first and quick opinions we form about others upon meeting them, which are often based on their appearance and behavior.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Attributions

Refers to the process by which individuals explain the causes of behavior and events.