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Unformatted text preview: B. Is a contingent liability. C. Is an estimated liability. D. Is not a liability until the due date. E. Cannot be used to extend the payment period for an account payable. 4. Most employees and employers are required to pay: A. Local payroll taxes. B. State payroll taxes. C. Federal payroll taxes. D. Both b and c only. E. All of the above. Problem ( 60 points ) SHOW ALL WORK !!!!!!! 2 A company's employees had the following earnings records at the close of the current payroll period: The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $84,900 plus 1.45% FICA Medicare on all wages; 0.8% federal unemployment taxes on the first $7,000; and 2.5% state unemployment taxes on the first $7,000. Compute the employer's total payroll taxes expense for the current pay period. 3...
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- Spring '10
- Balance Sheet, Generally Accepted Accounting Principles, Federal Insurance Contributions Act tax