Question: Sage Hardware Company's payroll for November 2017 is summarized below.
Amount Subject to Payroll Taxes
Unemployment Tax
Payroll Wages Due FICA Federal State
Factory $122,600 $122,600 $37,000 $37,000
Sales 29,700 29,700 4,400 4,400
Administrative 35,500 35,500
Total $187,800 $187,800 $41,400 $41,400
At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. Of the $187,800 wages subject to FICA tax, $18,700 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $15,700 for factory, $6,600 for sales, and $5,500 for administrative.
(a) Prepare a schedule showing the employer's total cost of wages for November by function.
Factory Sales Administrative Total
Salaries and Wages
FICA Taxes
FUTA Taxes
SUTA Taxes
Total Cost