Great Lakes Tutoring Had the Following Payroll Information on February

question 4

Multiple Choice

Great Lakes Tutoring had the following payroll information on February 28: Assume:
FICA tax rates are: OASDI 6.2% on a limit of $106,800 and Medicare 1.45%
State Unemployment tax rate is 2% on the first $7,000
Federal Unemployment tax rate is 0.8% on the first $7,000
Using the information above, the journal entry to record the employee's tax expense would include:

• A)a debit to Payroll Tax Expense in the amount of $4,000.
• B)a debit to Wages and Salaries Expense in the amount of $4,000.
• C)a credit to Cash in the amount of $4,000.
• D)a credit to FUTA Payable for $24.

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Definitions:

Better Business Bureaus

Organizations that provide information about businesses, handling consumer complaints and promoting ethical business practices.

Buyer Information

The details and data about consumers that are relevant for businesses in understanding their needs, preferences, and behavior.

Moral Hazard

A situation where one party is more likely to take risks because another party bears the consequences of those risks.

Alter Behavior

The process of changing or modifying actions, habits, or conduct.