Payless,Inc's gross payroll was $100,000 for the current pay period.Federal income tax (FIT)withheld totals $20,000.The FICA (Social Security)rate is 6.2% and the Medicare rate is 1.45%.
Part A: Show the effect of paying its employees (do not record the employer’s payroll taxes):
Part B: How much cash will Payless,Inc.have to pay to the government for Federal income taxes,Social Security,and Medicare on the gross payroll of $100,000?

Question

Payless,Inc's gross payroll was $100,000 for the current pay period.Federal income tax (FIT)withheld totals $20,000.The FICA (Social Security)rate is 6.2% and the Medicare rate is 1.45%.
Part A:  Show the effect of paying its employees (do not record the employer’s payroll taxes):	
Part B: How much cash will Payless,Inc.have to pay to the government for Federal income taxes,Social Security,and Medicare on the gross payroll of $100,000?

Quizplus · Accepted Answer

The Answer of Payless,Inc's gross payroll was $100,000 for the current pay period.Federal income tax (FIT)withheld totals $20,000.The FICA (Social Security)rate is 6.2% and the Medicare rate is 1.45%.
Part A:  Show the effect of paying its employees (do not record the employer’s payroll taxes):	
Part B: How much cash will Payless,Inc.have to pay to the government for Federal income taxes,Social Security,and Medicare on the gross payroll of $100,000?

Payless,Inc's Gross Payroll Was $100,000 for the Current Pay Period