John Smith Has Cumulative Yearly Earnings of $24,700, Counting His

question 44

Multiple Choice

John Smith has cumulative yearly earnings of $24,700, counting his current pay period salary amount of $3,500. Assume the FICA tax rate is 6.2 percent for Social Security, with a limit of $113,700, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6 percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The employer's payroll tax expense entry will include a credit to

• A)FICA Tax Payable for $217.00.
• B)FICA Tax Payable for $267.75.
• C)Federal Unemployment Tax Payable for $28.00.
• D)State Unemployment Tax Payable for $189.00.
• E)Federal Unemployment Tax Payable for $280.00.

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Definitions:

Inside Diameter

The measurement of the interior width of a hollow object from one inner wall directly across to the opposite inner wall.

Capability Index

A statistical measure of a process's ability to produce output within preset specification limits.

Daily Proportion

The fraction or percentage of a particular event or characteristic occurring within a single day.

Attendance Policy

An attendance policy is a set of rules or guidelines regarding the expectations and requirements for attendance to classes, work, or events.