Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company:
The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for
A) $2,496.
B) $1,100.
C) $1,596.
D) $496.

Question

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company:
 The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for
A) $2,496. 
B) $1,100. 
C) $1,596. 
D) $496.

Quizplus · Accepted Answer

The employer's payroll tax expense is calculated as a percentage of the total payroll. The rate varies depending on the location of the company and other factors, but a common rate is around 15%. Therefore, multiplying the total payroll of $10,640 by 15% gives an estimated payroll tax expense of $1,596. Therefore, the correct answer is choice C.

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