Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15, 2010. Payment occurs on January 20.
$\begin{array}{lrlr}
\text { Gross payroll } & \$ 16,000 & \text { Federal income taxes withheld } & \$ 1,800 \
\text { Social security and Medicare rate } & 7.65 \% & \text { Federal unemployment tax rate } & 8 \% \
\text { State unemployment tax rate } & 5.4 \% & &
\end{array}$ Payroll Taxes and Benefits Expense would be recorded for
A) $1,224.
B) $2,216.
C) $4,016.
D) $992.

Question

Quizplus · Accepted Answer

Payroll Taxes and Benefits Expense includes the employer's portion of Social Security and Medicare taxes (7.65% of $16,000 = $1,224) and the federal and state unemployment taxes (8% + 5.4% of $16,000 = $1,992). Total = $1,224 + $992 = $2,216.

Use This Information to Answer the Following Question Payroll Taxes and Benefits Expense Would Be Recorded for A)

Use This Information to Answer the Following Question Payroll Taxes and Benefits Expense Would Be Recorded for
A)