Assuming no employees are subject to ceilings for their earn

Assuming no employees are subject to ceilings for their earnings, Moore Company has the following information for the pay period of December 15 - 31, 20xx.

Salaries Payable would be recorded for

Select the correct answer.

Solution

gross payroll = $14364

Federal income tax withheld = $3,615

Social security rate = 6% or 14364*0.06 = $861.84

Federal unemployment tax rate = 0.8% = 14364*0.008 = $114.91

Medicare rate = 1.5% = 14364*0.015 = $215.46

State unemployment tax rate = 5.4% = 14364*0.054 = $775.65

since only the employer pays Unemployment taxes. so those taxes are not deducted from the employee\'s wages,

so discard those values and subtract remaining from the gross payroll so we get $9671.7.

so second option is correct answer.