Jason's gross pay for the week is $1,800. His year−to−date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6​% and that​ Jason's year−to−date pay has not yet exceeded the $7,000 cap. What is the total amount of payroll taxes that his employer must record as payroll tax​ expenses? (Do not round your intermediate calculations. Assume a FICA—OASDI Tax of 6.2​% and FICA—Medicare Tax of 1.45​%.)

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter3: Accounting For Labor
Section: Chapter Questions
Problem 7E: Davis, Inc. paid wages to its employees during the year as follows: a. How much of the total payroll...
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​Jason's gross pay for the week is

$1,800.

His

year−to−date

pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is

6​%

and that​ Jason's

year−to−date

pay has not yet exceeded the

$7,000

cap. What is the total amount of payroll taxes that his employer must record as payroll tax​ expenses? (Do not round your intermediate calculations. Assume a

FICA—OASDI

Tax of

6.2​%

and

FICA—Medicare

Tax of

1.45​%.)
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