During the Week Ended June 15, Wiley Automotive's Employees Earned

question 67

Multiple Choice

During the week ended June 15, Wiley Automotive's employees earned $2,000 of gross wages and had $300 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%. The journal entry to record Payroll Tax Expense for the pay period would be:

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Definitions:

Value

The importance, worth, or usefulness of something, often influenced by social norms and individual perceptions.

Less Valuable

Considered to have lower worth or importance in comparison to something else.

George Homans

An American sociologist known for his work in developing social exchange theory, which posits that the exchange of goods, services, and social values plays a key role in the formation of social relationships.

Success-Stimulus

The principle that success in a certain activity or field encourages continued action and effort in that or similar activities.