JustAnswer > Tax
Ask A Question|Register|Login|Help
JustAnswer

Tax

Ask a Tax Question, Get an Answer ASAP!

Have your own Tax question?

Tax Professionals are Online Now
characters left:
Not a Tax Question?

Related Tax Topics:

  • Tax
    • ,
  • 2007
    • ,
  • Paid
    • ,
  • State
    • ,
  • Total
    • ,
  • Taxes
    • ,
  • Wages
    • ,
  • Exempt
    • ,
  • Income
    • ,
  • Social
Bookmark and Share

Question

The total payroll of Waters Company for the month of October, 2007 was $360,000, of which $90,000 represented amounts paid in excess of $90,000 to certain employees. $300,000 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $90,000 of federal income taxes and $9,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee's wages to $90,000 and 1.45% in excess of $90,000. What amount should Waters record as payroll tax expense?

Submitted: 629 days and 18 hours ago.
Category: Tax
Value: $15
Status: CLOSED

Accepted Answer

Hello XXXXXXX,

The total amount to be recorded as payroll taxes is $113,040 computed as follows:

1. Federal income taxes withheld - $90,000

2. State unemployment taxes on $60,000 @ 1% = $600 - ($300,000 was exempt)

3. Federal unemployment taxes on $60,000 @ .8% = $480 - ($300,000 was exempt)

4. Social Security tax on $270,000 @6.2% = $16,740 - ($90,000 was exempt)

5. Medicare tax on $360,000 @1.45% = $5,220 - (All wages subject to Medicare)

Union dues withheld are not part of payroll tax expense.

Merlo39626.7172166319

Picture
Expert: Merlo
Pos. Feedback: 99.9 %
Accepts: 7638
Answered: 6/27/2008

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad

Related Tax Questions

  • is it possible for an individual taxpayer to use both the .....
  • I am an airline employee, I have meal expenses on my ...
  • need help with injured spouse form
  • RECEIVED 1099C from collection agency, NOT the ...
  • I am a NJ based corporation w/ an office in PA. I ...
  • What does it mean when the IRS says that I''m recertified?
  • Medical Coverage
  • How may mass are there in london.



Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
Question List | Become an Expert | Terms of Service | Security & Privacy | About Us
© 2003-2010 JustAnswer Corp.