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Dog Days, Inc has 10 employees that earned $12,000 in a pay period. The following table...

Dog Days, Inc has 10 employees that earned $12,000 in a pay period. The following table is the rates for employment taxes (assume no employees have reached the caps for unemployment). How much will be held from the employees checks?

Social Security 6.20%
Medicare 1.45%
Federal Withholding 18%
State Withholding 8%
FUTA 0.45%
SUTA 1.60%
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Answer #1
%*12000*10 employees
Social Security 6.20% 7440
Medicare 1.45% 1740
Federal Withholding 18% 21600
State Withholding 8% 9600
FUTA (only employers contribute upto the first $ 7000 of each employee's annual salary) 0.45%
SUTA (only employers contribute upto the first $ 7000 of each employee's annual salary) 1.60%
Total withholdings from the 10 employees checks 40380
Journal entries will be:
Account Titles Debit Credit
Salaries expense(12000*10) 120000
Social Security Taxes Payable 7440
Medicare taxes payable 1740
Federal Withholding 21600
State Withholding 9600
Salary payable 79620
(Recording salaries & deductions for the pay-period)
Social Security Taxes Payable (7440*2) 14880
Medicare Taxes payable (1740*2) 3480
Federal Withholding 21600
State Withholding 9600
FUTA(7000*10*0.45%) 315
SUTA(7000*10*1.60%) 1120
Cash 50995
(On remittance of the above withholdings & state&federal unemployment taxes)
ANSWER:
Total Withholding from employee checks for the period will be =
40380
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