Question

​Tan's gross pay for the week is​ $1,500. 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​ Tan's year-to-date pay has previously exceeded the​ $7,000 cap. What is the amount of state and federal unemployment tax that his employer must record as payroll tax expense and pay to the federal and state​ governments?

Answer 1

Answer:

The $90 is the amount which must record as payroll tax expense and pay to the federal and state​ governments.

Explanation:

The taxable income is that income which is paid to the government. It is always calculated on the gross pay amount which means we have to deduct all the deductions from the income which is earned in the financial year.  

The computation of the amount of state and federal unemployment tax that his employer must record as a payroll tax expense and pay to the federal and state​ governments is shown below:

= Total gross pay amount × r state and federal unemployment compensation tax rate

= $1,500 × 6%

= $90