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The payroll register of Sara Company indicates $5,850 of social security tax withheld and $1,600 of Medicare tax withheld on total salaries of $92,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $31,500, taxable at the federal rate of 0.8% and the state rate of 5.4%, respectively. What is the total amount of payroll tax expense? Ⓒa. $7,702 b. $7,450 O c. $9,151 O d. $9,403

The payroll register of Sara Company indicates $5,850 of social security tax withheld and $1,600 of Medicare tax withheld on total salaries of $92,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $31,500, taxable at the federal rate of 0.8% and the state rate of 5.4%, respectively. What is the total amount of payroll tax expense? Ⓒa. $7,702 b. $7,450 O c. $9,151 O d. $9,403

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 1E
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The payroll register of Sara Company indicates $5,850 of social security tax withheld and $1,600 of Medicare tax withheld on total salaries of $92,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $31,500, taxable at the federal rate of 0.8% and the state rate of 5.4%, respectively. What is the total amount of payroll tax expense? a. $7,702 b. $7,450 c. $9,151 d. $9,403
Transcribed Image Text:The payroll register of Sara Company indicates $5,850 of social security tax withheld and $1,600 of Medicare tax withheld on total salaries of $92,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $31,500, taxable at the federal rate of 0.8% and the state rate of 5.4%, respectively. What is the total amount of payroll tax expense? a. $7,702 b. $7,450 c. $9,151 d. $9,403
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