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Steve's total payroll for February was $800,000

Accounting

Steve's total payroll for February was $800,000. Of that total, $62,300 represented amounts paid to employees in excess of $137,700 and $720,000 represented amounts paid to employees in excess of $7,000. Federal income taxes withheld were $225,000, charitable contributions withheld were $1,000, and 401-K contributions withheld were $40,000. Steve's effective state unemployment tax is 1% and its effective federal unemployment tax is 1%. The current F.I.C.A. tax rate is 7.65% on an employee's wages to $137,700 and 1.45% in excess of $137,700. What amount should Steve record as payroll tax expense for October?

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FICA tax 57337 =(800000-62300)*7.65%+(62300*1.45%)
State unemployment tax 800 =(800000-720000)*1%
Federal unemployment tax 800 =(800000-720000)*1%
Payroll tax expense for October 58937 or 58937.40

 

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