Art Panache, the sole employee of Panache Sales, has gross salary for March of $5,000....
70.2K
Verified Solution
Link Copied!
Question
Accounting
Art Panache, the sole employee of Panache Sales, has gross salary for March of $5,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry in the payroll cycle to record employers payroll tax expense includes a credit to FICA Medicare Taxes Payable for $145. (Assume a FICA OASDI Tax of 6.2% and FICA Medicare Tax of 1.45%.
A.True
B. False
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
