Assume Best Computers had $90325 taxable earnings
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Assume Best Computers had $90325 taxable earnings
Assume Best Computers had $90,325 taxable earnings for the first quarter (covering January, February, and March). Assuming that the state unemployment tax rate is 5.4 percent (0.054) and the federal unemployment tax rate is 0.6 percent (0.006) of the first $7,000 paid to each employee during the calendar year, journalize the entries for the payment of Best Computers’ state and federal unemployment taxes. Assume that no employee has surpassed the $7,000 limit.
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