Grammy's Bakery had the following information for the pay period ending June 30:
Employee Name Pay
rate Hours worked Cumulative earnings Department Federal income tax withheld
P. Ganster $ 2,000 Salaried $ 12,000 Kitchen $ 86.00
T. Baker 10.00/hr 50 6,500 Office 22.00
Assume:
FICA-OASDI applied to the first $117,000 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to FUTA Payable?
A) Debit $4.00
B) Credit $4.00
C) Debit $20.40
D) Credit $20.40
Answer: B
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