Perez Company has the following information for the pay period of January 15-31. $$\begin{array} { l r l r }
\text { Gross payroll } & \$ 20,000 & \text { Federal income tax withheld } & \$ 2,500 \
\text { Social security rate } & 6 \% & \text { Federal unemployment tax rate } & 0.8 \% \
\text { Medicare rate } & 1.5 \% & \text { State unemployment tax rate } & 5.4 \%
\end{array}$$
Assuming no employees are subject to ceilings for their earnings, calculate salaries payable and employer payroll tax expense.

Question

Perez Company has the following information for the pay period of January 15-31. $$\begin{array} { l r l r } 
\text { Gross payroll } & \$ 20,000 & \text { Federal income tax withheld } & \$ 2,500 \
\text { Social security rate } & 6 \% & \text { Federal unemployment tax rate } & 0.8 \% \
\text { Medicare rate } & 1.5 \% & \text { State unemployment tax rate } & 5.4 \%
\end{array}$$ ​
Assuming no employees are subject to ceilings for their earnings, calculate salaries payable and employer payroll tax expense.

Quizplus · Accepted Answer

The Answer of Perez Company has the following information for the pay period of January 15-31. $$\begin{array} { l r l r } 
\text { Gross payroll } & \$ 20,000 & \text { Federal income tax withheld } & \$ 2,500 \
\text { Social security rate } & 6 \% & \text { Federal unemployment tax rate } & 0.8 \% \
\text { Medicare rate } & 1.5 \% & \text { State unemployment tax rate } & 5.4 \%
\end{array}$$ ​
Assuming no employees are subject to ceilings for their earnings, calculate salaries payable and employer payroll tax expense.

Perez Company Has the Following Information for the Pay Period