Question - Sandhill Hardware Company's payroll for November 2017 is summarized below.
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Amount Subject to Payroll Taxes
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|
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Unemployment Tax
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Payroll
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Wages Due
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FICA
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Federal
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State
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Factory
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$121,300
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$121,300
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$41,100
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$41,100
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Sales
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30,600
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30,600
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3,800
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3,800
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Administrative
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37,600
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37,600
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Total
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$189,500
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$189,500
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$44,900
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$44,900
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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 $189,500 wages subject to FICA tax, $19,000 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $15,500 for factory, $7,600 for sales, and $6,700 for administrative.
Required - Prepare a schedule showing the employer's total cost of wages for November by function.