Using the Information Below, Determine the Amount of the Payroll

question 22

Essay

Using the information below, determine the amount of the payroll tax expense for B. Hope Company's first payroll of the year. In your answer list the amounts for FICA (OASDI and Medicare), SUTA, and FUTA. Assume:
FICA tax rates are: OASDI 6.2% on a limit of $128,400 and Medicare 1.45%.
State Unemployment tax rate is 5.0% on the first $7,000.
Federal Unemployment tax rate is 0.8% on the first $7,000.

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Definitions:

Superior Vena Cava

A large vein that carries deoxygenated blood from the upper half of the body to the heart's right atrium.

Mesenteric Vein

A vein in the mesentery that drains blood from the small intestine and parts of the large intestine into the portal vein.

Ductus Venosus

A fetal blood vessel that diverts some blood flow away from the liver and directly into the inferior vena cava.

Fetal Liver

An organ in the fetus that plays a crucial role in blood cell production before birth.