Midwest Shipping Pays Employees at the End of Each Month

question 12

Essay

Midwest Shipping pays employees at the end of each month.Payroll information is listed below for January,the first month of the fiscal year.Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January.
$$\begin{array} { l r } \text { Salaries } & \$ 800,000 \\\text { Federal and state income taxes withheld } & 160,000 \\\text { Federal unemployment tax rate } & 0.80 \% \\\text { State unemployment tax rate (after FUTA deduction) } & 3.00 \% \\\text { Social Security (FICA) tax rate } & 7.65 \%\end{array}$$
Record salaries expense and payroll tax expense for the January pay period.

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