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Question
Lee Company has the following information for the pay period of December 15–31:
Gross payroll $16,000 Federal income tax withheld $4,000
Social security rate 6.0% Federal unemployment tax rate 0.8%
Medicare rate 1.5% State unemployment tax rate 5.4%
Assuming that for the year to date no employees have reached the maximum earnings subject to FICA or unemployment taxes, salaries payable would be recorded for
a. $16,000
b. $9,808
c. $10,800
d. $11,040
Answer
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